Law Firms Build Own AI for Edge

Law firms are increasingly developing proprietary artificial intelligence platforms to gain a competitive advantage and safeguard their intellectual property. This trend signifies a maturing legal tech market, with significant investment pouring into custom AI solutions. The global legal technology market is expected to expand substantially by 2033.

Firms like Kirkland & Ellis, with a $500mn allocation, and Goodwin Procter, spending approximately $25mn annually, are leading this movement. These bespoke tools are designed for complex, commercially sensitive tasks, differentiating them from standard AI software used for routine matters like contract drafting.

This approach creates a split in the AI market, with some firms opting for sophisticated in-house solutions while others integrate readily available AI tools. Suppliers are adapting, with some assisting clients in customizing their AI software for new legal applications, acknowledging that many firms will continue to rely on external providers for essential infrastructure.