AI-Driven Disruption Is Reshaping the Legal Industry and Driving M&A

The business and practice of law are being reshaped by AI at a pace few would have expected for a historically slow-moving sector. That transformation is now driving increased investment and M&A activity across LegalTech, as buyers and investors move to secure technology, talent, and defensible positions in a rapidly changing market. AI-enabled LegalTech platforms are reshaping how law firms and in-house legal teams manage contract review, legal research, client intake, compliance, and risk—while also putting pressure on traditional legal service delivery and pricing models. While announcements like Anthropic’s recent one regarding its AI Legal Tools plugin can feel disruptive, we believe they do not signal an immediate displacement of specialist LegalTech companies. Significant barriers remain for foundation-model providers, including trust, governance, deep domain expertise, workflow integration, and enterprise support.

Moreover, the legal industry itself continues to adopt new technology more deliberately than many other sectors.The speed with which this development unfolded reinforces a core conclusion of the report: AI agents are moving from novelty to practical automation, and the LegalTech ecosystem is entering a new phase of maturity and consolidation.

Download the LegalTech white paper for insights into where the market is headed and how AI is changing both the business and practice of law.

Talk to our industry specialist