The role of artificial intelligence in the popularization of LegalTechs in Brazil

**By Lisa Worcman, partner Sponser and Mariane Cortez, Innovation Consultant at Attix

The adoption of artificial intelligence (AI), especially generative artificial intelligence, generates a significant expectation of the legal sector. As mentioned in the report The Future is Now: Artificial Intelligence and the Legal Profession published by International Bar Association and the Center for AI and Digital Policy “ The transforming impact of AI can no longer be ignored. If the internet has changed the way we live and work, AI can have an even greater impact on our profession and society. Not all the consequences of AI have been identified yet, but of course the future has already arrived.”

This digital transformation of the legal sector has fostered a specific segment: the Legaltechs. according to the Survey carried out by Future Market Insights, the appreciation of this market should reach US$ 29.60 billion in 2024, with forecast to reach the value of US$ 68.04 billion by 2034. In Brazil alone, since the creation of AB2L – Brazilian Association of Lawtechs and Legaltechs in 2017, the number of associated legaltechs has increased by more than 300%.

Legaltechs are startups that aim to simplify, optimize or improve legal practice. The range of solutions offered is diverse, such as contract management software and supplier chain management software, process search platforms integrated into several courts with jurimetry and e-discovery platforms, all focused on optimizing activities, improving the efficiency and quality of work delivered to the final customer.

As of 2019, the evolution and popularization of generative AI, a technology capable of creating new content, such as images and texts, contributed to the acceleration and development of Legaltechs. This is because this technology is capable of increasing the operational efficiency of the activities carried out through it by up to 10 times, such as automatic creation of contracts and various documents, faster and more personalized answers to open-ended questions and the analysis of large volumes of legal data to find patterns and insights. The possibility of performing better predictive analyzes allows lawyers to make more reliable predictions about the outcome of disputes, supporting the elaboration of more effective legal strategies.

Thus, although the Legaltech market has started to evolve before generative AI, this technology has undoubtedly become an increasingly important factor in the growth and transformation of the legal market.

Evolutionary Legaltechs

The potential of AI in the segment is vast, and Legaltechs will continue to develop increasingly sophisticated solutions. The personalization of services is also presented as a trend in the sector, with AI platforms capable of adapting legal recommendations to the specific needs of each client, promoting a more personalized service.

In addition, it is expected that there will be an important evolution in information security, with the development of tools that further protect sensitive data, especially in a context of greater technological integration. Another advance that we can expect is a greater use of AI to support dispute resolution, with systems capable of mediating and even resolving conflicts in a more agile and precise way, relieving the judicial system.

technology adoption depends on training

Artificial intelligence is redefining the performance of offices and legal departments that bet on technological innovation.

However, for the benefits to be significant, in addition to evaluating which processes and activities the AI will be used in, it is essential that teams are trained before the implementation of the solutions and that there are continuous development programs in order to guarantee successful integration and use. For the success in the use of technologies, it is essential that teams know how to extract the best results from the tools used. Thus, those who are prepared to adopt this innovation will be in a prominent position in the legal market.