Extract from Bob Ambrogi’s article “Alternative Legal Services Market Grows to $28.5B as Industry Faces Critical Juncture, Thomson Reuters Report Finds”
The market for alternative legal services providers has grown to an estimated $28.5 billion, achieving an 18% compound annual growth rate from 2021 to 2023, but the industry appears to be reaching a critical juncture, with a bifurcation emerging between forward-looking and traditional law firms in their adoption of alternative delivery models, according to a report released today.
The report, Alternative Legal Services Providers 2025, published by Thomson Reuters in collaboration with the Center on Ethics and the Legal Profession at Georgetown Law and the Saïd Business School at the University of Oxford, suggests that while the ALSP market continues its robust growth, the legal industry is dividing between those embracing alternative delivery models and those adhering to traditional practices.
More than half (57%) of corporate law departments now use ALSPs for services ranging from flexible resourcing to e-discovery and litigation support. However, the report identifies an emerging split in the market between what it characterizes as forward-looking law firms and law departments that are expanding their use of ALSPs and those that remain committed to traditional models.