Where AI Takes Legal Tech From Here

Most of the money in legal tech this year has gone to one kind of product. On our funding tracker, GenAI review, drafting and assistant companies raised $2.17 billion of the $2.96 billion in 2026 equity funding, or 73.5%. The question now is what those tools turn into. Based on what shipped and what courts said in October, here is Legal Tech Circle’s view of where AI takes legal tech next. For the funding detail, see our 2026 funding review and 2027 outlook.

Checking Becomes the Product

The first shift is from generating text to checking it. LexisNexis announced Shepard’s Verify, which it says helps assess citation status, quotations and related points across both AI-assisted and lawyer-created documents. New York’s court system issued guidance reminding attorneys that they remain responsible for everything they submit. Chief Administrative Judge Joseph Zayas said:

“AI tools can help enhance efficiency, but they also carry risks that demand caution and informed oversight.”

When courts put verification on the lawyer, vendors will sell the checking step. We expect it to become a standard feature, not a premium add-on.

Agents Take the Front Door

The second shift is where work enters. Legora launched Intake, which it describes as a front door for in-house legal teams, available now in Slack. It turns requests into tracked work and can prepare it using the team’s own playbooks, with lawyers reviewing. Clio showed Grow AI, which LawSites reports answers inbound calls, asks a firm’s screening questions, runs conflict checks and books consultations. Our view is that intake is where agents prove themselves first, because the work is repetitive and the handoff to a lawyer is clear.

Agent to Agent Is Still a Rumor

Some people want to go further. Above the Law reported that Spellbook’s chief executive posted that a Fortune 500 healthcare company asked whether its agent could send redlines to a counterparty without human involvement. The report says he later clarified the client meant routine agreements such as NDAs. That is one sales call, from one source. We treat it as a signal to watch, not a trend, and we would expect court and bar rules on supervision to shape how far it goes.

AI Reaches Criminal Cases First

AI is already in criminal justice, ahead of the rules. N47 led Longeye’s $20 million Series A for evidence review used by justice agencies. Florida judges began using Westlaw’s CoCounsel on July 1, according to The Florida Bar News, which quotes Chief Judge Lisa Munyon saying judges do not use it for decision making. The Law Commission of Ontario presented 29 recommendations for AI in criminal justice. Our view is that public sector use grows faster than most firms expect, and that disclosure rules follow.

Firms Will Run More Than One AI

The last shift is buying behavior. Hogan Lovells Cadwalader signed agreements with both Harvey and Legora and created an AI Board to decide what to build and what to buy. Its chief executive said there is no single AI solution that will meet every need. We think more large firms land in the same place, which favors vendors that connect well with others.

Common Questions

Will AI replace lawyers?

Nothing in this month’s announcements points that way. The products described keep lawyers reviewing and approving the work, and courts are making that review explicit.

What should a firm watch for first?

Verification features and intake tools, because both are shipping now and both are tied to rules courts are already setting.

Is agent to agent negotiation happening?

There is one reported sales request so far and no confirmed deployment.

Verdict

Partly Real. The checking and intake shifts are live and backed by shipping products. Fully autonomous legal work is still a talking point, and the rules being written suggest it will stay supervised.