Focused on innovation, these companies transform customer service, research, organization and other services, increasing the productivity of businesses operating in the legal area .
All this is possible through technologies, ranging from the simplest to the complex, using modern concepts such as artificial intelligence, algorithms and machine learning to make life easier for professionals and clients.
In this article, we bring a complete overview of legaltechs in Brazil, with advantages and examples of relevant startups in this environment.
If the subject interests you, check out the topics covered:
- What is legaltech?
- What is the difference between legaltech and lawtech?
- How is the legaltech market in Brazil?
- What are the goals of legaltechs?
- How does a legaltech work?
- How can legaltech help the legal sector?
- What are the advantages of legaltechs for the legal market?
- 6 Examples of legaltechs.
Go ahead and enjoy reading!
What is legaltech?
Legaltech is a word created to designate startups in the legal sector .
Like other terms that express disruption in other economic sectors, legaltech was borrowed from English and represents the junction of two expressions:
- Legal : can be translated as something related to legal norms
- Tech : short for technology , or technology.
So, legaltech refers to technology companies focused on meeting legal demands.
Typically, these organizations are startups, that is, they start lean and with high growth opportunities by adopting a business model that can scale quickly.
Some of them offer specific software, databases and smart search engines, creating disruptive innovations that transform the market.
Others bet on basic changes in routine, but which make a difference by giving more autonomy to employees or helping with time management .
This is the case of process automation and document scanning, which help organize the day-to-day life of law firms.
What is the difference between legaltech and lawtech?
Following the reasoning of the name legaltech, the expression lawtech can be broken down into law (law) and tech (technology or technology), describing the startups that deal with issues related to law enforcement .
Thus, whoever observes only the nomenclatures, has great chances of using the terms as synonyms.
However, there is a reason for both words to exist: they designate the final client of the startup operating in the legal field.
While legaltechs are dedicated to meeting the needs and desires of industry professionals – both lawyers and law firms -, lawtechs offer options for the final consumer : the citizen .
However, in Brazil, both legaltech and lawtech are often used to describe companies that use technology to solve problems in the legal area , without paying much attention to their target.
After all, the same product or service can serve both professionals and the general public.
How is the legaltech market in Brazil?
The legaltech market in Brazil is heated, although there is still room for growth.
Data from the Brazilian Association of Lawtechs and Legaltechs (AB2L) show that the number of legal startups in the country increased by 300% between 2017 and 2019, when the registered legaltechs were almost 150.
And that doesn’t happen for nothing.
After all, the backlog of lawsuits in Brazil exceeds 77 million , according to the Justice in Numbers report , released by the National Council of Justice (CNJ) in 2020.
Given the high volume of work, jurists and lawyers have been resorting to technological solutions that simplify consultations with the legislation , organization of documents, attracting clients, etc.
That’s where the work of legaltechs comes in.