Legal services represent a huge industry that is known for his repetitive and tedious work. Thus, it frequently ranks among the competition, which is able to most probably take into account greater automation.
In often cited Goldman Sachs reportAnalysts have estimated that 44% of legal work could be ultimately automated. The AI-Exeda software will take most of this load.
Startup investors support this idea with their checking books. In recent quarters, financing for firms in the legal and legal technical sector has increased to levels comparable to what we saw during the 2021 market summit.
To illustrate this, we have designated annual investments in legal startup for the last six years below.
Quarterly financing has more ups and downs, but mostly it also remained strongly, like the chart below.
This is AI
It is not surprising that the overwhelming majority of recent funds for the legal technical sector went to firms that include artificial intelligence in their offer.
Data on Crunchbase is estimated that 79% of all legal startup investments from 2024, i.e. almost $ 2.2 billion, went to firms that also match our AI categories. This includes the two largest fundraisers: Clio AND Harvey.
Clio based in Vancouver, a platform for legal tools, is by far the largest recent recipient of financing in space. Closed $ 900 million Series F last summer with a valuation of $ 3 billion with New Associates Enterprise as the foremost investor.
CLIO software allows legal firms to automate processes comparable to customer consumption, accounting and document management. His generative offer of artificial intelligence, Clio twoIt also helps lawyers to perform routine tasks more efficiently.
Harvey based in San Francisco landed this month price $ 300 million. Run by Capital sequoiaFinancing sets a valuation of $ 3 billion for a 3-year-old company that gives AI platform for legal and skilled services.
Other large, last rounds went to:
- EvenThe supplier of legal management tools based in San Francisco and based on artificial intelligence secured $ 135 million in October Series D. run by Bain Capital Ventures.
- LuminanceThe British company offering the AI platform for legal contracts closed $ 75 million in C series This month led by Point72 Ventures.
- JustpointThe New York startup collected $ 45 million this month for the business model of employing artificial intelligence for drug search that cause damage and could also be the basis of lawsuits.
Saving time
Probably the most -advertised case of using technical tools that support artificial intelligence is that they permit practices to save time.
According to evaluation With Thomson ReutersDuring the 12 months, AI can dismiss an additional 4 hours of labor for a week for professionals in law and other fields. Within five years, this may increase to a huge 12 hours a week.
For now, the impact of recent tools on legal employment can only prove. On the one hand, firms and internal departments of legal advisers may not need so many people. On the other hand, lawyers can say that they are able to work productively, serve more clients and increase income.
Given that so many modern startups at the intelligence intelligence and legal technology are at an early stage of scaling, we’ll have to wait and see the way it all goes.