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- The advent of artificial intelligence has sparked the evolution of legal software-as-a-service (LSaaS) platforms from out-of-the-box contract creation utilities to tools that enable efficiency across the legal profession, including small practices, in-house corporate counsel and large international law firms. As early-stage companies innovate and large law firms direct more funds toward research and development, we anticipate substantial value creation in this sector by firms that focus their LSaaS platforms on specific industries or a lifecycle of contracts and documents for specific client categories.
- We highlight innovative LSaaS companies and initiatives in three LSaaS segments: non-lawyer users (mainly small and medium-size businesses), attorneys at smaller firms and other lawyers, such as in-house corporate counsel, and very large law firms that invest in proprietary AI-powered technology.
TABLE OF CONTENTS
Includes discussion of DOCU and 15 private companies
Innovators in the three LSaaS market segments
LSaaS for non-lawyers
LSaaS for smaller law firms and lawyers in other organizations
LSaaS for very large law firms
AI expands the field of opportunity for LSaaS
Enterprise productivity multiples expand as visibility on strong revenue growth continues
M&A valuations remain strong, big deals up the ante on private companies
Appetite for investment in rapidly growing companies remains strong
As artificial intelligence (AI) powered platforms become more sophisticated and flexible, one of the growing verticals has been platforms aimed at automating legal services. Among the most central purposes of these LSaaS platforms is minimizing the cost and increasing the speed of getting legal advice. They began as standardized solutions for creating contracts, using templates generated for a variety of purposes, most commonly real estate and personal finance. With newer AI capabilities, particularly for language interpretation, LSaaS platforms have evolved to provide higher-value and more tailored solutions for clients. The new AI-powered LSaaS platforms expand the scope of capabilities to include interpreting documents used in legal processes and recommending courses of action in negotiating non-litigated matters or in certain areas of litigation.