Key Takeaways:
- In a world where legal processes are difficult, costly and hardly available for regular people, tools such as Legal Torch that leverage AI and Blockchain technology can have a significant impact.
- All projections indicate a substantial and growing market for Legal Tech (with CAGR ranging from 4.3% to 9.1%) in the coming years. VAIOT has an opportunity to shape the future of this industry, as the Legal Tech market is still in the early stages and likely undervalued.
- Freelancers often face challenges in managing complex legal contracts. Legal Torch provides a comprehensive platform for contract drafting, review, secure storage, and dispute resolution while allowing users to cut costs and be flexible at all times.
- Real estate agents and landlords can benefit from Legal Torch’s platform for managing rental agreements. Legal Torch can help to be compliant with local regulations and streamline the entire rental process, while contract management features make it easier to manage several contractual relationships at once.
- Legal Torch offers a unified platform for managing contracts and agreements. This is particularly useful for startups and businesses without in-house legal departments.
- The combination of AI and blockchain technology in Legal Torch has the potential to transform legal processes across various industries, including real estate, business, freelance, partnerships, technology, marketing, estate planning, immigration, non-profit, events, logistics, and insurance.
“I still remember an entrepreneur friend who tried to start a business. The idea was good, he had the financial means, proof of concept and support. Yet, the challenging legal paperwork and regulations almost took away all the thrill, money and time.”
— Stephany, Product Marketing Manager at VAIOT
Just imagine this: You’re an entrepreneur, brimming with ideas and ready to take on the world. But as you navigate the complex maze of legal requirements, contracts, and regulations, you find yourself overwhelmed and frustrated, especially when operating in a different country or legislation, (something that impacts both individuals and law professionals). You know that legal support is crucial for your business’s success. However, traditional legal services are often difficult to understand and expensive (especially in the initial phase of the entrepreneurial journey, when every penny counts). You wish for a smarter, more efficient way to handle your legal needs. Being an entrepreneur is not an easy task!
As Tomasz Mutschke, VAIOT’s Project Implementation Manager, explains:
“Despite the rapid growth of generative AI, the legal industry is still very much out-of-date”
This is why the intersection of AI and blockchain can potentially offer a promising solution to democratize the access to legal processes, provide low-cost guidance on how to deal with specific issues, deliver high-quality legal documentation on a wider scale and automate repetitive tasks whilst protecting data and ensuring transparent transactions.
The Global Legal Tech market is projected to grow significantly in the coming years. Forecasts indicate a CAGR ranging from 4.3% to 9.1%, with estimates reaching $35.6B USD by 2027 (Statista), $46B USD (Grand View Research) by 2030, and even up to $68B USD by 2034 (Future Market Insights). While the exact figures may vary, the consensus is clear: the LegalTech market is set for substantial expansion. This growth is driven by the early stage of development, suggesting potential undervaluation.
Adoption of LegalTech solutions, ongoing technological advancements and increased investment will likely propel the industry forward, making it an exciting space to watch in the coming decade.
Projects such as VAIOT are promising to positively influence the legal landscape by increasing the availability of legal support for a wider audience. Legal Torch, a product from VAIOT, is a user-centric solution that will facilitate processes for individuals, companies and law professionals. In this article, we will explore real-life applications and use cases that will help you visualize how the power of AI and blockchain technologies used by Legal Torch, can transform operations that are often difficult and time-consuming.
Case 1: Is It Safe to Offer Freelance Services Online?
When freelancers provide a service on alternative platforms, let’s say on Discord, they often face the challenge of navigating complex legal contracts without the support of a legal team. Most don’t even consider sending agreements to their clients, which puts them in a vulnerable position. When they do, there’s no guarantee that such contracts will be respected.
Freelancers often lack the legal expertise and resources to review and manage contracts, so they are exposed to potential legal issues and financial losses. According to Your Europe, (2024), the EU online dispute resolution system (ODR), handles on average 2000 claims per month. Confidence in e-commerce and freelancing services has increased by 21,1% since the ODR by EU was enabled (Slaw, 2024)
Tools such as Legal Torch which will have blockchain technology integrated, could offer alternative solutions for online dispute resolution. Decentralized Dispute Resolution System(DDRS), can guarantee transparent transactions and quality of the services through smart contracts.
Furthermore, an AI-powered contract management system like Legal Torch could provide freelancers and e-commerce with the tools to streamline the contract review process. By utilizing customized LLMs like GTP-4 and Llama 3 and VAIOT’s proprietary machine learning, Legal Torch could help freelancers quickly identify potentially problematic clauses and suggest alternative conditions based on industry best practices.
With Legal Torch:
- Freelancers have access to a comprehensive platform for contract drafting, negotiation and review.
- Secure storage and easy access to all their legal documents.
- Collaborative editing and online signature.
- Blockchain technology ensures that all contracts are tamper-proof and easily auditable, providing an extra layer of security for freelancers.
Case 2: Renting a Property (From Owner to Real Estate Agents)
As a real estate agent or landlord, managing rental agreements can be time-consuming and complex. Each agreement must be tailored to the specific property and tenant, where any mistakes or oversights could lead to costly legal disputes down the line. Property owners and real estate agents have distinct needs. Owners need to secure responsible tenants and protect their property while respecting tenant rights under local regulations. On the other hand, real estate agents or property managers must ensure these standards across multiple clients and properties.
It can be challenging to keep track of personalized agreements and diverse legislation. Notably, (National Statistics Office of Malta, 2023) has reported a growth in real estate investment and demand due to the increase in tourism and the preference of at least 85,4% of those tourists to rent temporary accommodation. The growing real estate investment and long-term rental, demand solutions to guarantee the safe management of multiple international properties.
Legal Torch could offer real estate agents and owners a comprehensive platform for managing all their rental agreements. By leveraging AI-powered document templates, AI document review, notifications and smart contracts, Legal Torch could help ensure that agreements are compliant with local regulations, whilst facilitating contract management.
With Legal Torch:
- Real estate professionals could streamline the rental process, from drafting and reviewing agreements to securing digital signatures from tenants.
- The platform’s storage system saves all agreements, making it easier to resolve disputes and maintain accurate data over time.
Case 3: Contract Management System for Businesses
As an HR professional or business owner managing employee contracts and agreements can be a daunting task, particularly in startups where there are no in-house legal departments. With numerous contracts to draft, review, and update regularly, it’s easy for important details to slip through the cracks. A study by World Commerce & Contracting indicates that an average cost of poor contracting is equal to losing 9.2% of that organization’s annual revenue!
For effective economic growth, micro-businesses and startups are looking to improve the cost-effectiveness of their processes, reducing the time and effort spent on necessary but non-business-related tasks.
A unified platform for managing all employee contracts and agreements powered by AI can be useful for these cases. Companies are more prone each time to welcome external solutions that have an all-in-one system that could tackle multiple pain points at the same time. The contract generation and management system of Legal Torch could ensure that all agreements are consistent, compliant, and up-to-date.
With Legal Torch:
- HR departments could reduce the time and effort required to manage employee contracts, while also mitigating the risk of legal disputes.
- The platform’s collaborative features would allow multiple stakeholders to review and provide input on contracts.
- The blockchain-based storage system would ensure the integrity and security of all sensitive employee data.
- The use of smart contracts in the same platform would facilitate the process of hiring remote workers.
In each of these use cases, the combination of AI and blockchain technology offered by Legal Torch has the potential to positively impact the way individuals and businesses handle legal contracts. By providing a comprehensive, user-friendly platform that addresses the specific pain points faced by businesses and individuals, Legal Torch is well-positioned to capture a significant share of the growing Legal Tech market.
As the list above illustrates, Legal Torch has the potential to transform legal processes across a wide range of industries and applications, from business formation and partnerships to estate planning and logistics. By leveraging the security and transparency of blockchain technology, along with the efficiency and accuracy of AI-powered document management, Legal Torch is well-positioned to become the go-to solution for legal contract management in Europe and beyond.
About VAIOT
VAIOT offers a portfolio of blockchain-based AI Assistants and on-chain Intelligent Contracts for businesses and consumers to provide automated services and transactions. VAIOT- AI and Blockchain for Legal Innovation.
Read our AI Legal Assistant Lightpaper here.
For more information about VAIOT, visit our website www.vaiot.ai, or join our Twitter, Telegram Community, Discord Server or YouTube channel for continuous updates.
