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updated on 03 February 2025
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The alternative legal services (ALS) market has reached a record high of $28.5 billion, according to a recent report.
The report, which was based on survey responses from 424 law firms and 213 corporate legal departments across the US, UK, Europe, Canada and Australia between September and October 2024, as well as interviews with ALS providers and legal department leaders, found that independent companies accounted for the bulk of the market, generating approximately $25.1 billion in revenue in 2023.
Meanwhile, law firm subsidiaries or affiliates generated $1.8 billion, up from $1 million in 2021. The Big Four accounting firms’ share also grew from $1.5 billion to $1.6 billion, according to the report carried out by the Thomson Reuters Institute, the Center of Ethics and the Legal Profession at Georgetown Law and the Saïd Business School at the University of Oxford.
Findings showed that corporate legal departments and law firms turn to alternative providers for lower cost, high-volume work and specialised expertise in areas such as technology and project management.