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

**By Lisa Worcman, partner sponsor and Mariane Cortez, innovation consultant at attix

The adoption of artificial intelligence (AI), in particular generative artificial intelligence, generates a significant transformation expectation in the legal sector The Future is Now: Artificial Intelligence and the Legal Profession published by International Bar Association and the Center for AI and Digital Policy “The transformative 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 our 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 by Future Market Insights, the valuation of this market should reach US$ 29.60 billion in 2024, with the forecast to reach the value of US$ 68.04 billion by 2034. Only in Brazil, since the creation of AB2L 2 Brazilian Association of Lawtechs and LegalTechs in 2017, the number of associated LegalTechs has increased 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 supply chain, procedural search platforms integrated to various courts with jurimetry and e-discovery platforms, all focused on optimizing activities, improving the efficiency and quality of the work delivered to the final customer.

From 2019, the evolution and popularization of generative AI, 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 able to increase up to 10 times the operational efficiency of the activities carried out through it, such as automatic creation of contracts and various documents, faster and more personalized answers to open 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 LegalTechs market began to evolve before generative AI, undoubtedly this technology has become an increasingly important factor in the growth and transformation of the legal market.

LegalTechs in evolution

The potential of AI in the segment is vast, and LegalTechs will continue to develop increasingly sophisticated solutions. The customization of services is also presented as a trend in the industry, 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 in supporting dispute resolution, with systems capable of mediating and even resolving conflicts more quickly and accurately, defusing the judicial system.

Technology adoption depends on capacity building

Artificial intelligence is redefining the performance of law firms and departments that are committed to technological innovation.

However, for the benefits to be significant, in addition to evaluating in which processes and activities AI will be used, it is essential that teams are trained before the implementation of solutions and that there are continuous development programs in order to ensure 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.