The Australian legal tech market is vibrant and ‘kaleidoscopic’, according to the first report of the first worldwide research project to definitively assess the state of the global Legal Tech industry.
“Our inaugural report on Australia’s Legal Tech companies reveals a vibrant, thriving and kaleidoscopic market, home to a diverse range of companies at many different stages of development,” said Stevie Ghiassi, the report’s Global Director, board director of the Australian Legal Technology Association and CEO of Legaler.
“It will be interesting to track the impact of COVID-19 on this market, given it represents both a threat and an opportunity for Legal Tech companies” he said.
The Global Legal Tech Report is a research initiative of the Australian Legal Technology Association (ALTA) and Alpha Creates, backed by research sponsors Macquarie, KPMG, the Law Society of England and Wales and Toro Digital.
There were three clear themes emerging from the Australian research, according to researchers Eric Chin and Graeme Grovum of Alpha Creates.
1. Gender representation and differing focus
The under-representation of women at senior levels in Australian law firms (28.5% of partners in Australia’s 50 largest law firms are female) is mirrored in Legal Tech companies. The report found that only 21% of Australian Legal Tech companies have female founders or co-founders.
“Australian legal tech companies founded by women are more likely to focus on a broader target market than just law firms and are also more strongly focused on the domestic market, with 44% interested in international expansion compared to 84% of those without female founders or co-founders.” Eric Chin said.
2. Artificial Intelligence companies thriving
Despite dominating the legal media headlines, artificial intelligence is not the main engine that powers Australia’s legal tech companies, with only 22% of respondents identifying AI as their core technology engine.
“However, it is clear that AI-based companies are bullish on the future, with twice as many developers, almost universal plans to increase their developer teams and more ambitious international growth plans than non-AI based companies.” Graeme Grovum observed.
3. Integrated solutions attract external funding
Of the 54 report respondents, 50% are integrated solution providers (a technology platform with more than one solution), while 33% are point solution providers.
“More integrated solutions providers (52%) have been successful in attracting external funding than point solutions providers (32%),” Alpha Creates noted.
Similar to what we saw with AI-based Legal Tech companies, integrated solution providers also have larger developer teams and stronger appetites for expansion into international markets.
“Australia 2020: A Report on the Business of Legal Tech” is available for purchase for $USD 399. The report details:
- The makeup of Australian Legal Tech company founders
- The team composition of Australian Legal Tech companies
- The underlying technologies that power solution developed by Australian Legal Tech companies
- The growth outlook for Australian Legal Tech companies
- The cost composition of Australian Legal Tech companies
- The business models and pricing models Australian Legal Tech companies have deployed to commercialise the solutions they developed.
Key findings from the Australian report will be presented by lead researcher, Eric Chin, in a free webinar hosted by the Australian Legal Technology Association on Tuesday 8 April at 12.30pm (ADT).
The Australian report is the first of a series of regional reports to be released this year, culminating with the release of the Global Report in November. The next reports, released on 29 May at the virtual ALTACON conference, will reveal the state of New Zealand’s and Asia’s Legal Tech companies.
The project is being undertaken in collaboration with global legal technology associations including the International Legal Technology Association, the European Legal Tech Association, the UK Legal Tech Association, ASEAN Legal Tech, Legal Tech NZ , Swiss Legal Tech, Asia Pacific Legal Innovation and Technology Association, Dutch Legal Tech, Tech & Law Israel, the African Law & Tech Network and Africa Law Tech Association.
All legal tech firms are invited to participate in the research via online survey
Participating legal technology companies will receive their regional report free and a substantial discount on the global research which will see a cross-jurisdictional comparison of the trends from each jurisdiction.
Visit globallegaltechreport.com for more information.
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