This is the age of the customer. The asymmetrical advantage that sellers long held over buyers is gone. Consumers have access to market information and choice that has transformed the buy-sell dynamic. Social media provides them with a reference source and a voice. The balance of power has shifted from the supply to the demand side.
Chatbots, currently are the hot tech-topic in the legal industry and law firms need to leverage the power of chatbots for managing their existing and potential customers. Advancements in AI and ML have led towards the emergence of AI-enabled chatbots, which can hold human-like conversations through auditory and textual methods. These AI-based chatbots are gaining popularity and are helping several companies across various verticals with customer engagement, workforce productivity, reduced expenses, and a lot more. Given its history of relying on paper-based documents, the legal industry has always been alleged of falling behind other industries in terms of accepting and deploying emerging technologies. However, over the past few years, the legal industry has been witness to large investments on automation and cloud technology, which has started to take root and is now becoming mainstream.
The legal technology industry is still nascent, but the industry has quietly built up a number of emerging categories over the last few years. With legal tech companies raising just $739M in aggregate funding since 2011, there is still a lot of opportunity to improve processes within a legal industry still attached to manual and paper-based processes. Using CB Insights and analytics, we identified 50 startups working in legal tech, and categorized them into a market map spanning key emerging categories such as electronic discovery, law practice management, and online legal services. We defined legal tech as all tech-enabled companies offering services and products to those in the legal industry. That includes technology catered to individual lawyers, larger corporate law firms, and other key stakeholders in the law industry.