AI tech is promising to lighten Canadian lawyers’ workloads so they have more time to save the world or chase ambulances (we kid).
What happened: U.S. legaltech provider Harvey announced plans to open a Toronto office as it charts a Canadian expansion. The company (named after famed fictional Suits lawyer Harvey Specter) offers AI products to automate legal tasks and streamline workflows.
- Harvey’s chief business officer John Haddock told The Peak Toronto’s “deep legal tradition” and abundance of engineering talent made it attractive for a new hub.
Big picture: Legaltech has been one of the most scorching-hot AI subsectors, attracting a record US$2 billion dollars in VC money in 2024, and another US$999 million in the first five months of this year. And Canada, with its 35,000 law firms, has been a big part of the boom.
- Last year, Clio broke the record for the largest Canadian funding round, and made headlines again this year after acquiring another legaltech company for $1.37 billion.
- Likewise, Montréal’s Spellbook (specializing in contract law) raised $27 million last year, and Toronto’s Blue J (specializing in tax law) raised $167.4 million this week.
Why it matters: AI promises to make the legal sector more productive, with a Goldman Sachs study suggesting that 44% of legal work could be replaced by AI. Haddock noted AI’s aptitude for “wrangling historical experience,” making it easier to do things like draft briefs.
Yes, but: While the space is booming now, experts predict a slowdown as law firms stop sampling different providers and choose which vendors they want to roll with long-term.—QH