Global legal
analytics market is predicted to proliferate during the forecast period due to
the increasing adoption of cloud-based legal analytics solutions, especially in
developing countries by enterprises to streamline collaboration, scalability,
improve legal software integration along with the development of more
enhancement in legal management. Legal analytics can help organisations
identify trends and patterns that pinpoint when and where business growth
occurs. By understanding these patterns, organizations can make better
decisions about how to scale the financial potential, reduce costs and gain
more clients. It gives businesses the opportunity to undiscover opportunities
and strengthen its growth potential, increase efficiency, manage data spread across
several sites while enhancing performance, dependability, and scalability.
Additionally, increasing adoption of artificial intelligence (AI) and machine
learning (ML) in legal analytics are increasing the demand of global legal
analytics market. To compensate for the losses in complexity systems,
businesses are increasingly utilising legal analytics services to offer more
productive and take data-driven decisions and increasing legal capability for
the legal professionals. Numerous innovations and product launch carried out in
analytics are expected to enhance the features of legal analytics. Furthermore,
the need for organizations to make Data-driven Decision Making (DDDM) approach
has aided in risen the demand. This, in turn, is expected to drive market
growth during the forecast period.
Legal analytics
is the practice of using data to inform decisions about issues that have an
impact on law firms and attorneys, such as matter forecasting, legal strategy,
and resource management. It is the science of gaining knowledge through
analyzing vast amounts of data. In practice, legal analytics tools, provides a
competitive advantage by offering unparalleled transparency and insight into
in-house counsel members, departments, and decision-makers, enabling lawyers
make data-driven decisions on which to build their legal strategies. The legal
analytics market is becoming more widespread as more
organizations recognize its value. In addition, the main purpose of legal
analytics is to optimize and facilitate the hiring process and enable the law
firms to gain transparency between the attorney and a potential client. The law
firms are integrating technology and business insights in which legal analytics
plays an essential component. Moreover, to achieve business goals, enterprises
are increasing utilizing the legal analytics as a tool to streamlining
eDiscovery, facilitating law firm marketing, and increasing client
satisfaction, promoting lawyer productivity, improving legal research, and
deciding legal actions with knowledge and risk in mind. These Legal analytics
are generally used in enhancing legal reporting, evaluating KPIs, collecting
data, and provide transparency to the legal authorities, among others.
Increasing
Adoption of Artificial Intelligence (AI)
and Machine Learning (ML)
Big data
analytics technologies are becoming omnipresent in many industries, and the
legal sector is no exception. Future-ready organizations are continuously
redefining the legal process they seek because of quickly evolving technology
and an increased emphasis on developing digital skills. Nowadays, there are
enormous amounts of data available in legal firms and corporate legal
departments. This data includes everything from billing records, docket
records, or litigation outcomes, and email communications and information
related to potential clients. To understand this data and find significant
patterns and links, organizations require the aid of artificial intelligence
(AI) and machine learning (ML). The integration of AI and machine learning are
aiding enterprises to automate a variety of legal analytics-related operations
and reducing the number of manual tasks that employees need to complete.
Real-time insights regarding employee performance, engagement levels, work
happiness, career goals, training requirements, and other topics may be
gathered using systems that are AI-enabled. Moreover, criminal cases come with
witness statements, several witnesses, and other information. To identify these
criminal cases with the likelihood of success in prosecution. Many law firms
have implemented machine learning models to produce the outcome of cases using
historical court judgments. AI algorithms are even capable of forecasting
results for increasing attorney productivity, avoid costly mistakes, and
litigation outcomes. For instance, a recent study by the World Economic Forum
projects that by 2025, 75 million jobs worldwide will be automated by AI.
Moreover, according to IBM Global AI Adoption Index 2022, in 35% of cases,
enterprises reported employing AI in their operations, while 42% said they are
investigating it in other cases. The advancement in technologies is aiding in
replacing and upgrading the legal analytics enabling the enhancement of manual
systems, constantly balancing the overall management between employee and
employers to maintain legal stability. Therefore, the increasing adoption of
artificial intelligence and machine learning in legal analytics might be
propelling the growth of global legal analytics market in the forecast period.
Growing need
for Organizations to make Data-driven Decision Making (DDDM)
The need for
real-time insights and predictions to optimize the performance has highlighted
the requirement for Data-driven Decision Making (DDDM). Traditionally the law
industry has relied on intuition and experience while making decisions, which
has led to biases and suboptimal outcomes. To overcome the biases and making
the best managerial rulings that are aligned with their strategies, the
data-driven decision-making organizations can use data to make informed and
verified decisions by using the right KPI’s and tools. However, law firms are
implementing the data driven decision making algorithms to prioritizes
measuring its performance, accelerating the firm’s growth potential, and
addressing any issues by making use of data, enabling them to manage better and
develop their talent and stay competitive. As most of the legal practitioners
generally handle different cases simultaneously, there is a need for an
effective approach to understand the patterns and outcome of the cases within a
minimal time. Moreover, many enterprises are integrating data driven based
decision-making legal analytics for numerous benefits such as cutting-edge
decision-making approach, better litigation strategy, reduced turnover,
spotting fraud, and enhanced employee engagement. Thus, the growing need for
organizations to make Data-Driven Decision Making (DDDM) are driving the growth
of global legal analytics market in the forecast period.
Predictive
Data Analytics Benefiting the Legal Analytics
The
proliferation of predictive maintenance, powered by IoT and advanced
technologies, ensures a long life for the legal industry. Predictive
maintenance is becoming an increasingly valuable tool for law firms to maximize
their productivity, efficiency, and profitability. By leveraging the latest
predictive maintenance tools and technologies, law firms are trying to achieve
optimal results. Predictive analytics tools are aiding legal professionals to
forecast the outcomes of legal cases, identify potential risks, predict client
& employee churn, and develop more effective legal strategies. Sensors
placed in different car components monitor the vehicle’s working status in
real-time. Based on the collected data, on analyzing this data, the in-place
system gives updates when any specific service is required. For instance,
predictive maintenance can help law firms identify areas of potential cost
savings, such as reducing the amount of time spent on certain tasks or identifying
opportunities for improved efficiency. It can also help law firms better manage
their resources, such as personnel and technology, to improve their bottom
line. Moreover, the integration of IoT is leveraging predictive maintenance to
enhance transmission function, optimize the engine performance, and maintain
the structural stability of vehicles.
Recent
Developments
- On 16 March 2023, Lex Machina and
LexisNexis recently announced the launch of legal analytics for Georgia
State court modules. The expansion of the product expands the coverage and
provides unparalleled insights into over 310,000 civil cases filed in 26
Georgia courts, bringing the state court case total to over 3.8 million.
The Legal Analytics platform combines an exclusive natural language processing
technology with attorney review to analyze state court documents.
- On 14 March 2023, Consilio, the
global leader in legal technology solutions and enterprise legal services,
announced the launch of legal hold and continuous active learning capabilities.
The sightline platform enables organizations to increase efficiency while
reducing the cost, risk, and complexity of managing legal hold workflows,
ensuring compliance and transparency of legal hold processes, and
preparing data for downstream discovery activities.
- On 19 January 2023, Kim
Technologies, with the Legal IT Insider platform “Kim” unveiled
pre-packaged applications for corporate legal teams to quickly automate
the key stages of their work environment from triage to instructing
outside counsel, with no need for technical expertise. The Kim platform
offers the download of the desired template, automated the documentation
process and aids in completing the process within 30 minutes.