- More than a quarter of lawyers already use generative AI at least once a month.
- AI in the legal sector is forecast to grow at an annual rate of 30.7% until 2032.
The impact of artificial intelligence on the legal sector is yet to be seen. However, large law firms such as Dentons, Garrigues, or Cuatrecasas have already introduced AI tools to streamline their daily operations. Lawyers are increasingly inclined to use more automation services in their work.
Some studies have already mapped the expectations of lawyers themselves for the use of artificial intelligence, while others use economic estimates to predict how the market will develop. These are forecasts, but they serve as an indication of the growth that AI will have in the legal sector. The analysis company MarketResearch predicts a steep rise. It calculates an annual growth rate of 30.7 % for the next eight years.
According to MarketResearch's figures, the volume of business that AI will generate in the legal sector will reach 675.1 million dollars worldwide in 2032. This is a considerable figure, especially compared to the starting point in 2022, when sales amounted to 49.8 million dollars. The leap represents more than a 13-fold increase in this figure.
The figures vary between the different studies due to different methodologies, but they all share a common pattern: the huge growth they predict. Data from analyst firm Mordor Intelligence shows that AI will move $2,190 million worth of business in the legal sector in 2024, likely because its definition of artificial intelligence is broader. However, the projected annual growth is 10.7%, reaching 3,640 million dollars in 2029.
These analyst firms assume that the transformation of corporate legal departments and law firms will begin in North America. But then it will quickly spread globally. The tasks that will be most impacted by AI include contract review, due diligence tasks, legal research, and drafting.
Lawyers are increasingly convinced of the benefits of AI
The data and analytics information provider LexisNexis, which covers the legal sector in its activities, surveyed lawyers that yielded revealing results. 26% of people working in this sector, i.e. more than a quarter, already use AI at least once a month.
In the middle of last year, when LexisNexis conducted a similar study, only 11% of professionals were using this technology. Within a few months, this proportion has increased significantly. Although the survey was conducted in the UK, it provides a general overview of the AI application landscape in the sector.
Those legal professionals most likely to use generative AI are in academic institutions (33%) and work in large firms. This shows the extent to which large law firms are using AI. Small law firms and freelancers have not embraced the technology as much, although they are more flexible in incorporating new features into their workflows.
Among lawyers, 35% say they plan to use AI in the future. Among those who work in a company's legal department, the percentage rises to 42%. This is a sign of the value that lawyers see in the technology. At the same time, the proportion of those who do not plan to use artificial intelligence in their work has fallen from 61% in July 2023 to 39%.
What lawyers want to use AI for
The tasks for which AI can be used in the legal sector are diverse. And the LexisNexis study also sheds light on this point. The majority of professionals (91%) plan to use it to create drafts of legal documents and to search for information on legal issues (90%).
In addition, 73% of legal professionals plan to use it for drafting emails. Among the tasks most in demand by law firms that have adopted AI tools to streamline their operations are contract analysis and document review, which enable the extraction of key data.
What worries lawyers the most is the hallucination of AI applications. This term refers to when such a tool provides incorrect or inappropriate answers. 57% of respondents are concerned about this prospect. The other major fear is that confidential customer data could be leaked. To avoid the latter, it is necessary to introduce a data protection policy when using AI and to anonymize information.