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America’s market for legal technology presents a puzzle. On the one hand, America’s market for legal services is among the most tightly regulated in the world, suggesting infertile ground for a legal technology revolution. On the other side of this puzzle is America’s advanced and free-wheeling market for legal tech, which is likely the most robust in the world. This chapter explains this seeming puzzle and then uses that explanation to make some predictions about where legal technology will continue to flourish in America and where legacy players—lawyers, law schools, and judges—will instead stymie its development. In order to predict the future we first must understand the present and the past, so the chapter presents a brief overview of lawyer regulation, the structure of the American market for lawyers and legal services, and the current state of legal tech. This more granular view of the innovation ecosystem can explain why some tech sectors are booming, while others remain stubbornly behind, and also where we’ll see continued and even accelerated legal tech growth and where we won’t.
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