The legaltech shift
No longer optional, AI tools are already reshaping everyday legal practice as law firms and startup developers bring innovation to the ground
by glória paiva
Experts: Marisa Borsboom, co-founder of the International Alliance of Lawtechs and Legal Innovation (AI2L); Axel Junestrand, founding GTM lead for Iberia and LatAm at Legora; André Dionísio, co-founder and CEO of ByTheLaw; Luís Alves Dias, CEO and co-founder at Legau; Francisco de Abreu Duarte, co-founder of Lexstream
The technological revolution has become a central concern in the legal sector. The question is no longer if artificial intelligence should be adopted, but when — and how fast. There’s growing consensus that technology now plays a decisive role in the success or failure of a law firm. Tools that improve efficiency, reduce costs, automate tasks, and enable predictive analytics are driving the growth of the legaltech AI market, as firms respond to rising pressure for agile, data-driven solutions.
The global legaltech market was valued at USD 2.5 billion in 2024 and is forecast to reach USD 8.5 billion by 2031, according to Market Research Intellect. Fuelled by product innovation, cross-sector application, sustainability goals and growing investor interest, the market is led by North America (over 40% share) and Europe (30%), according to Cognitive Market Research. In Portugal, the industry is still in its early stages, with just over a dozen consolidated companies focused exclusively on legal solutions, according to Abreu Advogados.
Still, momentum is building. According to Marisa Borsboom, co-founder of the International Alliance of Lawtechs and Legal Innovation (AI2L), the sector has entered a boom phase after years of groundwork by “pioneers and dreamers”. “We used to talk about disruption, innovation, revolution. Now it’s time to rethink, reimagine, and restructure”, she says. One of the clearest signs of that shift is the increasing collaboration between major law firms and startups, such as the Portuguese Legau – which works with clients like PLMJ, Antas da Cunha Ecija, and CCA Law Firm – and the Swedish Legora, which has been developing solutions alongside Morais Leitão (click to read) and Pérez-Llorca.
THIRSTY FOR INNOVATION
In Southern Europe, firms are moving from hesitation to action. “Both in Portugal and Spain, forward-thinking teams are embracing AI to drive efficiency and gain a competitive edge”, says Axel Junestrand, founding GTM lead for Iberia and LatAm at Legora. He highlights strong demand in areas where accuracy and scalability are critical— especially in automating routine tasks that previously kept lawyers from higher-value work. “This is where AI delivers immediate value, by taking over the repetitive work and enabling lawyers to concentrate on strategic, client-facing tasks”, he notes.
After spending six months observing the daily work at Sérvulo & Associados, André Dionísio, co-founder and CEO of ByTheLaw, and his team identified internal knowledge management as a key bottleneck. The company developed, then, an AI-based system that automatically organises internal legal information, reducing time spent on non-billable admin. “Knowledge is the most valuable asset for law firms”, says Dionísio.
