The Shift Toward Agentic Legal Workflows
The legal industry is moving beyond simple AI assistance. For years, generative AI has been used primarily as a sophisticated search tool or a drafting aid. However, the current trajectory suggests a fundamental shift toward “agentic” AI—systems that do not just suggest text, but execute complex workflows autonomously.
This evolution is exemplified by the function of Swedish AI legal tech firm Legora, which is developing a full agentic operating system for legal work. The goal is to move from AI that assists to AI that executes, provided there is the appropriate level of human oversight.
As Max Junestrand, CEO and cofounder of Legora, notes, enterprise AI is entering a new phase where the real breakthrough lies in application. When AI can autonomously handle the “execution” phase of a legal task, the efficiency gains move from incremental to exponential.
Why Hardware Giants are Entering the Legal Space
The entry of NVentures into the legal AI market is more than just a financial investment. It represents a convergence of high-performance computing and specialized professional services. By providing technical expertise and supply chain assistance alongside capital, hardware leaders are ensuring that the software layers—like those built by Legora—are optimized for the chips that power them.
This synergy is critical because agentic AI requires significantly more compute power than simple chatbots. To run an “operating system” for law that manages tens of thousands of professionals across 50+ markets, the underlying infrastructure must be seamless.
This trend suggests that future legal tech winners will not just be those with the best prompts, but those with the deepest ties to the hardware and infrastructure layers of AI.
The Valuation War: Legora vs. Harvey
The market is currently seeing a surge in “mega-valuations” for AI legal startups. Legora has reached a $5.6 billion valuation following a $600 million Series D round. Similarly, U.S. Rival Harvey has raised $200 million at an $11 billion valuation.
These numbers reflect a broader bet by investors on the commercial potential of AI to reshape entire industries. The scale of funding indicates that the market views legal AI not as a niche tool, but as a foundational shift in how professional services are delivered.
The Rise of the In-House AI Powerhouse
One of the most significant trends is the rapid adoption of AI within corporate legal departments. Traditionally, the most advanced tools were the province of “Big Law” firms. Now, in-house teams are accelerating their adoption to match the AI capabilities used by their outside counsel.
Major corporate legal departments, such as Barclays, are already integrating these tools to streamline workflows. This shift is creating a new competitive dynamic where corporate legal teams can handle more complex work internally, potentially reducing reliance on external firms for routine execution.
European AI Ecosystem Gains Momentum
While the U.S. Has historically dominated the AI landscape, Europe is emerging as a powerhouse for specialized enterprise AI. AI startups in Europe have already raised $15.1 billion this year, showing a trajectory that could surpass previous annual records.
The success of Stockholm-based Legora—which has scaled from 40 to 400 employees and surpassed $100 million in annual recurring revenue—demonstrates that European firms can compete globally in the high-stakes legal AI market. By serving leading global firms like White & Case, HSFK, and Linklaters, these companies are proving that “Legal AI” is a global product regardless of its origin.
Future Outlook: From SaaS to AaaS
The industry is moving from “Software as a Service” (SaaS) to “Agents as a Service” (AaaS). In the SaaS model, the lawyer uses the software to do the work. In the AaaS model, the agent performs the work, and the lawyer manages the agent.
This transition will likely lead to new billing models. As AI reduces the time required for non-billable and routine tasks, the legal industry may be forced to move further away from the billable hour and toward value-based pricing.
Frequently Asked Questions
What is “agentic AI” in the legal context?
Agentic AI refers to systems that can execute autonomous workflows—performing a sequence of tasks to reach a goal—rather than just answering a single prompt or drafting a document.
Why is Nvidia investing in legal tech?
Nvidia, via NVentures, is deepening its ties with promising AI companies to provide technical expertise and supply chain support, ensuring that the next generation of AI applications is optimized for their hardware.
How is AI affecting corporate legal departments?
In-house teams are rapidly adopting AI to bring their internal capabilities in line with those of the global law firms they hire, leading to increased efficiency and a shift in how corporate legal work is managed.
Join the Conversation
Do you believe agentic AI will eventually replace the billable hour, or will it simply make lawyers more profitable? Share your thoughts in the comments below or subscribe to our newsletter for more insights into the future of legal tech.
