Extract of article by Holden Page
The legal industry is ridden with complexity and nuance. Ethics rules govern how lawyers can interact with clients, and rules can vary by town, county, and state. And the tools that keep the wheels of the legal system turning are persistently stuck in the 90s. Think fax machines, Windows XP, and a world without Slack groups.
All of this presents an opportunity for tech startups to modernize the legal industry. With the advent of tech innovation in other industries, calls for lawyers to embrace technology are growing. Meanwhile, other tech startups are actively working to replace lawyers with artificial intelligence.
However, to rework the legal industry, which is steeped in tradition and regulation, large sums of money are likely required. In an effort to address these challenges, legal tech startups have received $1.5 billion in funding across 610 deals since 2010.
While over a billion has been placed in legal tech startups, the pace of that investment in terms of deal and dollar volume has stalled.
Included in this stalling are startups that look to help lawyers automate and improve workflows through new software and services, and startups that look to do away with lawyers using artificial intelligence and other software innovations.