The global legal AI market was valued at $1.2B in 2024 and is projected to reach $8.7B by 2030, representing a 38.4% CAGR (Grand View Research, 2024). This growth is driven by three mutually exclusive segments:
1. **Document Review & Discovery** ($3.2B projected by 2030): The largest segment, driven by increasing litigation volumes and regulatory complexity. Key players include Relativity (40% market share in e-discovery), Everlaw, and Disco. Growth is constrained by data privacy regulations in the EU (GDPR Article 22) and emerging state-level AI legislation in the US.
2. **Legal Research & Case Analysis** ($2.8B projected by 2030): The fastest-growing segment at 42.1% CAGR, as firms move from keyword-based search to semantic understanding. Thomson Reuters (Westlaw AI) and LexisNexis (Lexis+ AI) dominate incumbents, but face disruption from purpose-built AI tools. Adoption is highest in Am Law 100 firms (73% using at least one AI research tool, ABA TechReport 2024).
3. **Contract Analysis & Management** ($2.7B projected by 2030): Driven by enterprise demand for CLM automation. Incumbents like Ironclad and DocuSign CLM compete with AI-native entrants. The segment shows the highest enterprise willingness-to-pay, with median annual contracts of $180K for mid-market firms.
Cross-segment dynamics show convergence: 61% of legal departments plan to consolidate AI vendors by 2027 (Gartner Legal Technology Survey, Q3 2024), creating platform risk for point solutions.