Artificial Intelligence (AI) is making its way into one of the most tradition-bound professions — the legal sector. From streamlining repetitive tasks to aiding judicial decision-making, AI is gradually reshaping how law firms, courts, and legal service providers operate.
For decades, the legal industry has relied on the billable hour as its primary revenue model. Now, AI-driven efficiency is challenging this norm. Generative AI (GenAI) tools are enabling faster drafting of contracts, quicker summarisation of case files, and efficient legal research. This shift is prompting conversations around value-based billing — where clients pay for the value delivered rather than time spent.
Law firms in India are cautiously adopting AI. While they acknowledge its potential for cost savings and efficiency, many are taking a measured approach due to concerns over accuracy, data confidentiality, and AI "hallucinations." Clients, meanwhile, demand faster service but remain resistant to higher fees, creating pressure for firms to balance speed and profitability.
Courts Embrace AI Tools
Judicial bodies across the globe are exploring AI:
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United States & Europe: Courts use AI-based risk assessment tools to scan defendants' histories and assist in sentencing decisions.
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Morocco: The judiciary uses AI to draft preliminary judgments in labour and traffic accident cases.
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India: The Supreme Court has piloted AI for summarising case files and managing dockets. Projects like Vidhi Anuvaad translate legal documents into multiple vernacular languages, while SUPACE assists in fact and law collection. The government’s Bhashini initiative is further aiding courts with multilingual, voice-enabled tools.
The integration of AI into legal work brings both promise and peril:
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Opportunities: Speed in document drafting, improved access to justice, multilingual capabilities, and reduced administrative burdens.
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Risks: Mistranslations, inaccurate outputs, biased AI models, and uncertainty around the admissibility of AI-generated evidence in court.
India is witnessing a surge in LegalTech innovation. According to Tracxn, the country now hosts 954 LegalTech companies, with 87 funded ventures collectively raising $780 million so far. In 2025 alone, the sector attracted $107 million — a 6,369% increase over last year.
Key players include:
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Harvey (San Francisco, US) — $600M funding; backed by Sequoia and OpenAI.
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LexLegis (Mumbai) — $7.24M funding; developing AI-based legal tools.
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Jurisphere (Mumbai) — Pre-seed stage; affordable AI solutions.
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SpotDraft (Bengaluru) — $1.26M funding; contract automation.
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Legitquest (New Delhi) — $2.65M funding; AI legal research.
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Zolvit (Chennai) — $17.36M funding; compliance and documentation automation.
AI in the legal field is not about replacing lawyers but enhancing their capabilities. The most successful adoption will blend human expertise with machine efficiency. For India’s vast and multilingual legal system, AI could be the key to faster, more accessible justice. The challenge will be ensuring accuracy, fairness, and ethical use as the technology becomes more embedded in everyday legal practice.