This is how AI-driven Legal Solutions are helping Freelancers, Micro Businesses, and SMEs: Legal Torch Use cases

Explore how Legal Torch addresses the $11 billion worth of unaddressed legal needs for over 6 million businesses.

10 min read4 days ago

Key Takeaways:

  • Over 50% of micro-businesses handle legal issues internally without professional assistance, facing significant challenges in accessing affordable legal services.
  • SMEs face an estimated $11 billion worth of unaddressed legal needs annually. Legal Torch by VAIOT will address specific pain points with a platform that integrates AI and blockchain technology.
  • VAIOT’s Legal Torch offers AI-powered contract creation and management, reducing costs and complexity for micro businesses and SMEs.
  • The platform provides customizable legal contracts, automated contract reviews, and secure blockchain-based storage for future versions, making legal tools and web3 legal technology more accessible to non-experts.
  • Legal Torch addresses common freelancer issues, such as client nonpayment and intellectual property disputes, by offering affordable, customizable contract templates and AI-guided legal advice.
  • Real-world use cases demonstrate Legal Torch’s benefits, a few examples are: graphic designers gain protection against nonpayment and intellectual property disputes; web developers get clear project terms to reduce scope creep and disputes; small marketing agencies ensure data protection compliance and secure storage; family-owned shops receive supplier contracts; tech startups manage investment agreements; dispute resolution systems and complex employment contracts.
  • The global LegalTech market is projected to reach $235.5 billion by 2027. Legal Torch is poised to address the market by providing decentralized legal tools that streamline operations, save resources, and foster business growth.

Freelancers, SMEs and micro-businesses are facing unique legal challenges that can hinder their growth and success. Data from Munich RE shows how the legal system inflates rates, benefiting from the limited resources smaller companies and individuals might have. Poor contracting and nonpayment are the most common issues for the majority.

Results from the American Property Casualty Insurance Association (APCIA) survey on public awareness of legal abuse.

According to World Commerce & Contracting, the average cost of poor contracting equals losing 9.2% of an organization’s annual revenue. This is particularly problematic for the 3,297 micro-businesses with up to 9 employees registered in Malta in 2023 alone, as they often lack the resources to access adequate legal support.

Freelancers, who make up a significant portion of the workforce, are no exception. A survey by the Freelancer’s Union found that 44% of freelancers have experienced client nonpayment at some point in their career, with an average loss of $6,000 per incident. Furthermore, 76% of freelancers express concerns about the legal implications of their work, yet only 23% have sought legal advice, due to high costs.

In Malta, where 75% of registered businesses are family-owned, many small enterprises struggle to navigate legal matters such as employment contracts, intellectual property protection, and business agreements without breaking the bank.

“I once had a client refuse to pay for a completed project, citing vague reasons and threatening legal action. The stress and financial burden of seeking legal advice were overwhelming, and I ultimately had to write off the loss. I know many other freelancers who have faced similar situations, and it is clear that we need more accessible, affordable solutions to protect us” — Emily Mahew, Event Planner at Somewhere Crazy.

According to LawTechUK, over 6 million SMEs registered in the UK create an unaddressed market for legal support worth 11B USD annually. Between the inflation of legal costs and the unmet needs of multiple businesses, Legal Torch is poised to become the go-to solution to address the market.

By leveraging cutting-edge technology and a user-centric approach, Legal Torch aims to bridge the gap between affordable, accessible legal tools and the unmet needs of freelancers, SMEs and micro-businesses. Some of the features involve automated contract generation, AI-assisted contract review, and contract management. Legal Torch empowers these underserved groups to take control of their legal matters without the burden of high costs or complexity.

Let’s dive into some real-world use cases to see how Legal Torch can support businesses and entrepreneurs.

Legal Torch Real-Life Use Cases


Case 1: Graphic Designer

Problem: Needs contracts for client projects but can’t afford a lawyer for each agreement. AI-generated contracts (from non-trained models) are generic and miss important clauses. Risks of not getting paid or intellectual property disputes.

• Solution: Legal Torch offers customizable contract templates specifically designed for multiple cases. AI guides users through creating legally sound agreements tailored to their unique needs.

• Benefits of Legal Torch: Saves hundreds in legal fees per contract. Provides peace of mind and protection. Frees up time to focus on creative work.

For freelance graphic designers, protecting their intellectual property and ensuring timely payment are crucial. However, the cost of hiring a lawyer to draft custom contracts for each project can quickly add up. Legal Torch addresses these challenges by providing affordable, customizable contract templates designed specifically for the user’s needs.

By leveraging AI technology, the platform guides users through the process of creating legally sound agreements that safeguard their rights and interests. As such, freelancers can secure their work and maintain positive client relationships without the burden of high legal costs.

Case 2: Web Developer

• Problem: Struggles with defining project scope and deliverables clearly in contracts. Risks scope creep and misunderstandings leading to disputes.

• Solution: Legal Torch provides specific contract templates with clear language for defining project terms. AI assists in customizing agreements and providing a summary of the main points in the contract for a faster review.

• Benefits of Legal Torch: Ensures clear communication and expectations with clients. Reduces risk of disputes. Saves time and money compared to hiring a lawyer for each contract.

Web developers often face challenges when it comes to clearly defining project scope, deliverables, and timelines in their client contracts. Poor communication and misunderstandings can lead to scope creep, delays, and ultimately, disputes that strain client relationships and impact profitability. Nally, R., Waters, G. (2022), found that 52% of projects experience scope creep, with ineffective communication being a primary cause.

Legal Torch helps web developers mitigate these risks by offering contract templates designed specifically for their industry. These templates use clear, concise language to define project terms, responsibilities, and expectations. The AI-powered platform assists developers in customizing these agreements to the unique requirements of each project, ensuring that both parties are on the same page from the start. By using Legal Torch, web developers can foster better communication and minimize the risk of costly disputes.

Micro Businesses:

Case 3: Small Marketing Agency

• Problem: Needs client service agreements and non-disclosure agreements. Concerned about data protection compliance and disputes.

• Solution: More than tailored contracts, The Legal Torch AI assistant guides users through GDPR and data protection clauses. Secure blockchain storage for sensitive agreements as well as an arbitration system to guarantee quality service supply through a Dispute Resolution System (DDRS by VAIOT).

• Benefits of Legal Torch: Enables agencies to operate with confidence. Demonstrates professionalism and builds trust with clients. Significant cost savings versus outsourced legal support.

Small marketing agencies handle sensitive client data and intellectual property daily. Ensuring compliance with data protection regulations like GDPR is essential to avoid costly fines and maintain client trust. However, the complexity of these regulations can be overwhelming for small agencies without dedicated legal resources.

Legal Torch simplifies data protection compliance by providing contract templates that include GDPR and other relevant clauses. Such contracts can also be backed by DDRS by VAIOT, a decentralised dispute resolution system that protects both the agency and clients.

The AI-powered platform helps review these agreements, ensuring they are fully compliant and understood. Additionally, Legal Torch aims to bring web3 technology so users can benefit from its advanced functionalities. In future versions, blockchain storage functionality will add an extra layer of security for sensitive client agreements if the user requires it.

Case 4: Family-Owned Book Shop

• Problem: Need to draft, review and manage contracts with suppliers, distributors and employees. Worried about keeping up with regulations.

• Solution: Legal Torch’s AI can generate, review and manage contracts. The bookshop can use pre-built templates tailored to their specific needs and ensure compliance with legal requirements.

• Benefits of Legal Torch: Provides affordable access to legal support and automates time-consuming processes, allowing the family to focus more on running and growing their business.

The Smith family owns a small, family-run bookshop that has been serving their community for years. While they are passionate about books and providing excellent customer service, they often struggle with the legal aspects of running their business. They need to manage contracts with their suppliers and employees, stay updated with regulations and more….

Legal Torch provides the tools to handle these tasks efficiently. By automating contract management, monitoring compliance, protecting intellectual property, and offering dispute resolution resources, Legal Torch helps the Smith family manage their legal needs more effectively.

This allows the Smith family to handle legal matters more efficiently and focus more on their business operations, ensuring that their bookshop continues to serve the community effectively.


Case 5: Tech Startup

• Problem: Facing investment agreements, intellectual property protection, and complex employment contracts. Can’t justify the cost of a legal department.

• Solution: Legal Torch offers startup-focused legal templates and a contract management system. The Legal Torch AI assistant helps navigate through the platform for easier and faster access to the contracts.

• Benefits of Legal Torch: Makes efficient contract management accessible. Helps to avoid costly contractual mistakes. Allows focus on product development and growth.

Tech startups navigate a complex web of legal challenges, from securing investment and protecting intellectual property to drafting founder agreements and employee contracts. Then, managing all this information often means time and resources to organize and find agreements, which impacts productivity.

Getting these critical legal components right can make or break a startup’s success. However, the high cost of traditional legal services can be a significant burden for early-stage companies. Legal fees could take up to 6–10% of a startup’s initial funding round, a substantial expense that could be significantly reduced with contract management platforms and AI-powered legal tools such as Legal Torch.

Legal Torch offers a lifeline for tech startups by providing affordable, legal contracts and management systems. The AI-powered platform helps founders confidently navigate the legalities of funding rounds, employees and external collaborators, ensuring they are properly protected and positioned for success.

By leveraging Legal Torch, tech startups can access the quality legal contracts they need to reduce costs, protect their assets, and focus on what matters most: building products.

AI and Blockchain adaptation made easy with Legal Torch

The integration of AI and blockchain technology in Legal Torch offers numerous benefits for both Web2 & Web3 users, particularly in terms of accessibility, efficiency, and security.

AI-powered features, such as intelligent contract drafting and automated dispute resolution, streamline legal processes and reduce time and costs. A study by McKinsey found that AI can help businesses increase efficiency by 80–90%.

Blockchain technology, on the other hand, ensures the security, transparency, and immutability of legal agreements and dispute resolution processes. By storing contracts and dispute records on a decentralized ledger, in future versions, Legal Torch will reduce the risk of tampering, fraud, and data loss. This added layer of security is particularly crucial for Web2 users, who may be more vulnerable to cyber threats and data breaches.

Moreover, the use of smart contracts enables the automation of contract execution and dispute resolution, reducing the need for intermediaries and minimizing the potential for human error. This automation not only saves time and resources but also increases the speed and efficiency of legal processes, benefiting both users and the legal system as a whole.

Legal Torch: Supporting businesses and entrepreneurs

The impact of Legal Torch extends beyond individual businesses, as it contributes to the broader audiences supplying the needs of all types of businesses and entrepreneurs. As more users adopt the platform and experience the benefits of AI-powered, blockchain-based legal solutions, we can expect to see a shift towards a more accessible, equitable, and efficient legal ecosystem.

This transformation is already underway, with the global LegalTech market projected to reach 235.5B USD by 2027, growing at a CAGR of 4.3% in 2027 (European Legal Tech & Services Insight, Raymond James Investment Banking, 2023). As a pioneer in the field, VAIOT is well-positioned to capture a significant share of this market through Legal Torch and drive the adoption of decentralized legal solutions.


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VAIOT is combining AI & Blockchain to develop IVAs – Intelligent Virtual Assistants, for both consumers and businesses. AI and Blockchain for Legal Innovation.