The legal AI market reached USD 1.5 billion in 2024, with a projected 17.3% CAGR – but what does that really mean for legal professionals?

AI is reshaping the way we work, think, and interact. It’s not a new phenomenon, but its increasing adoption across industries is changing the game. For the legal profession, AI’s rise is more than just a technological shift—it’s transforming the very foundation of legal services. In 2024, the legal AI market was valued at USD 1.45 billion, with projections indicating a growth rate of 17.3% CAGR from 2025 to 2030. This growth marks a critical moment for legal professionals, as AI is becoming an integral part of how services are delivered.

But what does this growth mean for legal professionals? The integration of AI isn’t just about adopting new technology; it’s about adapting to a new way of working. To truly understand the impact, it’s worth examining the data and considering how the legal industry can harness AI’s potential.

Data from Grand View Research reveals that the global legal AI market was valued at USD 1.45 billion in 2024 and is projected to grow at a CAGR of 17.3% from 2025 to 2030.

The rise of AI investments is not only happening in the legal sector

AI investments are not only growing within the legal sector but also across industries, with GenAI projected to increase by 60% over the next three years. This trend signals a growing focus on AI solutions, and while it’s unclear how much will be directed towards legal technologies, it’s reasonable to expect that legal professionals will benefit from this broader investment.

Research from Deloitte shows that GenAI investments are projected to increase by 60% in the next 3 years, highlighting the growing need for AI-driven solutions

However, generic AI tools won’t be enough for the legal sector. Legal professionals need platforms designed with legal-specific needs in mind—tools that incorporate legal prompts, secure data handling, and compliance with industry regulations. Security, confidentiality, and meeting rigorous compliance standards are just as important as the AI’s functionality. For AI solutions to truly succeed in the legal field, they must be tailored to meet the sector’s demands, ensuring that the legal professionals can deliver high-quality services while maintaining the profession’s high standards.

With the right AI tools, legal professionals can enhance their work, improve efficiency, reduce costs, and ultimately offer better services to clients. When platforms are built with the legal workflow in mind, firms will be able to maximize the value of their AI investments.

AI as a strategic driver of change in legal operations

The increase in AI investments signals a shift in how businesses are approaching technology. Deloitte reports that over 80% of AI investments are now focused on reshaping critical functions and developing new products and services. This shift reflects the growing understanding that AI is not just about improving productivity, it’s about driving transformation. In the legal sector, AI is already moving beyond basic automation tasks like document review. It’s now being used to address more complex challenges, such as contract analysis and compliance checks that have traditionally been both time-consuming and prone to human error.

At Saga, we are developing AI solutions tailored to the unique needs of legal professionals. These solutions don’t just automate repetitive tasks; they address complex legal processes, improving productivity and reducing operational costs. The question is: is the legal sector fully embracing this shift? Are all law firms adopting AI at the same pace, or is the change concentrated in certain areas?

Research from Deloitte shows that leading companies focus +80% of their AI investments in reshaping critical functions and inventing new products and services.

As we reflect on this shift in terms of the legal industry, it is clear that we are transitioning from basic automation to more advanced AI-driven solutions. These solutions, like Saga’s, are designed with the specific challenges faced by the legal professionals in mind. By investing in AI technologies that are tailored to legal workflows, firms can improve productivity, reduce operational costs, and ultimately enhance client outcomes.

Yet, while the legal market is embracing these changes, one must consider whether this shift is happening consistently across the entire industry. Are all legal professionals and firms adopting AI at the same rate, or is the integration of AI more concentrated in certain areas? Furthermore, when we look at the broader business world, we see AI being used not just for automation, but to fundamentally reshape the way organizations operate. The question is, how deeply is the legal sector embracing this shift?

But how will the rise of AI be adopted: there is a need for upgrading skills

The rise of AI presents a clear choice for legal professionals: adapt or risk falling behind. Yet, while the legal AI market grows rapidly, there’s a significant gap in workforce training. Deloitte’s research shows that 71% of companies report that less than a quarter of their employees have received adequate training to use AI tools effectively. This creates a paradox—AI adoption is rising, yet there is insufficient investment in the training required to use it properly.

In the legal industry, this gap in training is particularly concerning. Unlike other sectors where AI’s main function is efficiency, legal AI tools demand a deep understanding of the specific challenges the profession faces. Legal professionals need the right knowledge to ensure compliance, maintain data security, and preserve the quality of their legal judgment. To fully unlock AI’s potential, the law firms and corporate legal departments must prioritize training their teams to use AI tools effectively.

Research from Deloitte shows that AI upskilling is accelerating, but the work is not over; ~70% of companies have trained less than 1 in 4 of their workforce.

While the legal AI market continues to grow, the true success of AI in the legal sector depends on more than just integrating new tools. Firms must also invest in the upskilling of their teams. A law firm that successfully combines AI adoption with structured training programs will be better positioned to enhance productivity, improve efficiency, and provide more value to clients.

The future of the legal profession lies in adopting AI platforms that are specifically designed for legal workflows. To stay competitive, firms must ensure that their teams are equipped with the skills to use these platforms to their full potential.

So, how will legal professionals navigate the growing role of AI in legal services?

The legal AI market is poised for substantial growth, with projections indicating a strong expansion over the next decade. As law firms and corporate legal departments seek ways to streamline operations and improve service delivery, AI-driven solutions are becoming essential for staying competitive in an increasingly technology-driven world.

However, the true success of AI in the legal sector will depend on more than just implementing the technology. It will require ongoing investment in training and user adoption. The true potential of AI will only be realized when professionals are equipped with the knowledge and skills to use it effectively. Firms that leverage specialized AI platforms—designed specifically for legal workflows—and pair them with structured training programs will be best positioned to meet the evolving demands of the legal market. These firms will not only stay ahead of the curve but will also enhance their long-term success.

As we look ahead, the key question remains: how will the industry balance the integration of these new AI technologies with the upskilling of their teams? Will the legal industry be ready to fully integrate AI in a way that transforms both operational practices and client service? The future of legal AI looks promising, but its true impact will be determined by the steps firms take today in adopting and optimizing these tools for a changing legal landscape. The next decade will be crucial, and the firms that successfully embrace AI will define the future of legal work.