FRONTEO Inc. (Headquarters: Minato-ku, Tokyo, President: Masahiro Morimoto) today publishes the "Legal Tech AI White Paper" that summarizes the market size and usage trends of the legal tech (*) industry.

This white paper is the first attempt in the industry to investigate not only the litigation support field, which is FRONTEO's main business, but also the market size and usage trends of the legal tech field in general. (See the attached sheet for some of the survey results)

The Legal Tech trends featured in this white paper are:

• New service by venture -Many startups have entered the market by lawyers and legal practitioners, while few new entrants from major companies and other industries.It is assumed that this is because the business is highly specialized and the barriers to entry are high, and it is easier for venture companies that have a small turnaround in the early days of the market to respond to the speed of change in the market.
• From emergency to peacetime -Many of the legal solutions before 2015 mainly dealt with incidents (fraud, litigation, legal troubles, etc.), but startups after 2015 have "prepared for peacetime" such as contract drafts and audits. It is characterized by the emergence of many solutions that support “preventive legal affairs”.
• AIUtilization of -At Legal Tech, expectations are very high for text (text) information, especially in the field of natural language analysis.This is because the information handled by legal affairs and intellectual property is originally a large amount of text-based data, and the effect of streamlining them with AI is expected to be large, and a service that claims to utilize AI. Already exist in large numbers.

table of contents

• Introductory dialogue "What is AI utilization in legal tech?"
• Introduction to Legal Tech
• <Column> Legal Tech in the United States
• Corporate trend survey

Survey outline

• Survey method: Internet survey
• Survey target: Persons engaged in legal affairs at a company
• Survey period: 2019/11 / 21-12 / 3
• Number of samples: 505

Ltd.FRONTEO President Morimoto Masahiro's comment

"Recently, there is an accelerating movement to improve work efficiency by making full use of AI and advanced technologies such as FinTech (finance) and HR Tech (human resources), but the legal field is no exception, and IT and AI There is also growing interest in "legal tech," which aims to improve the productivity of legal affairs by utilizing the law. Legal tech was born in the United States, and the background to the rapid spread of legal tech there is The "discovery" procedure in civil lawsuits has forced us to scrutinize a huge amount of electronic data (e-mail and various electronic files). This discovery procedure plays a part in the spread of legal tech. However, in Japan, it is not well known, and the original utilization method and effectiveness, as well as the risk of not utilizing it, are not known, so it is left to foreign experts. This is a field that is expected to develop in the future for Japanese companies and domestic law firms that are advancing.

As a leading company in the legal tech AI industry, FRONTEO is pleased to carry out such a survey this time and to inform you of the results.We will continue to strive to provide information and support for the introduction of the latest legal tech technology to Japanese companies. "

* Legal tech is a general term for services for legal affairs that utilize IT technologies such as AI.Along with FinTech (finance) and HR Tech (human resources), it is called XTech and has become a trend of IT service utilization in recent years.

You can download "Legal Tech AI White Paper" from this URL.

https://legal.fronteo.com/download

 <Attachment>

1. Legal tech market size (2019Annual calculation)

In terms of legal services, internal surveys and IP services account for the largest proportion of the legal tech market.

* In this volume, the number indicating the market size is entered in xx in the figure.

2. Contract examination is the top in terms of awareness of service types

Both large companies and small and medium-sized companies are aware of things that are closely related to daily legal work, such as "contract examination / review, contract management," "decree, case information service," "lawyer search, consultation," and "registration." Tendency to be.

3. Business (legal affairs) that Legal Tech can utilize

Expectations are high for the use of legal tech in "organizational legal affairs" and "registration / application work".In addition, in "organizational legal affairs", "decree / legend survey", and "employee education / enlightenment", the needs of large companies are significantly higher than those of small and medium-sized companies.

4. Business (intellectual property) that Legal Tech can utilize

In the IP business, there is a strong need to utilize legal tech for "dispute response" and "employee education / enlightenment".On the other hand, legal tech solutions in this field have not yet been launched, and although there are potential needs as business issues, there are few concrete solutions.

• FRONTEOabout　URL: https://www.fronteo.com/

FRONTEO Co., Ltd. is a data analysis company that supports the analysis of information such as big data using its proprietary artificial intelligence engine "KIBIT".Established in August 2003 as a company that supports e-discovery (electronic discovery), which preserves, investigates, and analyzes electronic data necessary for international litigation, and digital forensic investigations.Proceeds against companies by making full use of in-house developed data analysis platform "Lit i View" and "Predictive Coding" technology that supports multiple languages ​​of Japanese, Chinese, Korean, and English. We provide countermeasure support.Unique artificial intelligence-related technologies such as "KIBIT" cultivated and developed in this legal business learn "tacit knowledge" such as expert experience and intuition, and analyze human thoughts to analyze future actions. Realize the prediction.We have expanded into areas such as healthcare and business intelligence, and have achieved results in "work style reform" in addition to FinTech and RegTech. Listed on TSE Mothers on June 8, 2007 and NASDAQ on May 6, 26.The capital is 2013 thousand yen (as of March 5, 16). As of July 2,559,206, 2019, the company name has been changed from UBIC Co., Ltd. to the current company name.