The State of LegalTech in Legal: Multi-Market Survey 2025

United States: Leading Global Adoption

The US legal market remains the world’s most mature and dynamic for LegalTech, with law firms and in-house teams both demonstrating high readiness and deep integration of AI tools. According to Thomson Reuters and Georgetown Law (2025), 77% of legal professionals expect AI to have a high impact within five years, with 42% calling it transformational. Robust adoption is seen in areas like cloud-based legal tools, e-filing, and AI-driven research, while in-house teams are proactively leveraging generative AI and preparing for a shift away from billable hours.

Key takeaway: US legal professionals are setting the pace for tech-driven transformation, with a focus on efficiency, profitability, and client value.

Download the full report in pdf HERE.

United Kingdom: Strategic Digital Change

The UK legal sector is undergoing profound digital transformation, driven by efficiency demands and post-Brexit competitiveness. Law firms show high readiness, with 60% planning digital upgrades in 2025 and 42% already using cloud solutions. In-house teams are moderately to highly ready, though adoption varies by size and sector. The regulatory climate remains active, with a strong emphasis on compliance and ethics.

Key takeaway: The UK’s legal ecosystem is strategically investing in technology to deliver value and transparency, with a clear focus on client outcomes and regulatory alignment.

India: Rapid Growth Phase

India’s LegalTech market is valued at $464.6 million (2023) and projected to reach $1.25 billion by 2030, fueled by automation, analytics, and AI. Law firms are actively partnering with LegalTech startups to automate routine work and enhance efficiency, while in-house teams are experimenting with AI for contract management and compliance. However, challenges remain: trust in AI outputs is low (only 4.1% fully trust AI without human checks), and barriers include budget, digital literacy, and data quality.

Key takeaway: India’s legal sector is on a steep upward trajectory, but scaling adoption will require investment in skills, trust, and robust governance.

Japan: Cautious, Regulated Progress

Japan’s LegalTech adoption is marked by caution and strong regulatory oversight. Only 9% of individuals and 47% of companies use generative AI, with public trust and private investment lagging behind global peers. The new AI Bill (2025) aims to accelerate innovation while addressing ethical and societal risks, but in-house and law firm readiness remain moderate as stakeholders await clearer frameworks.

Key takeaway: Japan is building a foundation for responsible AI adoption, balancing innovation with a strong focus on safety and compliance.

Korea: Comprehensive Framework Development

Korea is positioning itself as a global AI leader with the passage of the “Artificial Intelligence Basic Law” (2024), set for enactment in 2026. The legal tech market is projected to double by 2030, driven by government strategy, private investment, and the establishment of the National AI Committee and AI Safety Institute. Law firms and in-house teams show moderate readiness, focusing on compliance with new regulations and leveraging AI for efficiency.

Key takeaway: Korea’s systematic, government-led approach is creating a robust legal tech ecosystem, with compliance and innovation at its core.

Singapore: Innovation-Driven Ecosystem

Singapore stands out as a regional hub for legal innovation, with strong government support, public-private collaboration, and an innovation-friendly regulatory climate. Law firms, both large and small, are rapidly adopting AI-powered solutions, while in-house teams are using generative AI for tasks like data processing and risk assessment. Despite high adoption, governance gaps remain, and the government is actively developing guidelines for responsible AI use.

Key takeaway: Singapore’s legal sector is leveraging technology to drive efficiency and client value, setting a benchmark for innovation in APAC.

For the full analysis, data, and strategic recommendations, download the complete June 2025 edition of “The State of LegalTech in Legal” HERE.

Questions? We're always eager to discuss. Let's get in touch!

Team AYTA!