Alternative Legal Service Providers
Kira Johnson
Legal services are expensive. In the last 25 years, costs for various legal services have risen significantly. According to the Legal Service Corporation, many low-income Americans are forced to go without legal representation in serious matters, and 53% of low-income Americans feel they would be unable to afford a lawyer if they needed one. Due to inflation and the growing wealth divide in the United States, this “Justice Gap” will likely continue to grow unless efforts are made to resolve the current gap.
In recent years, AI, in its various forms, has become more well known and more widely used. Generative AI has especially caused a buzz stirring up many debates regarding its ethical use in various fields, including the legal world. These technologies are not necessarily new but are often used in new ways and in ways more accessible to the public.
The use of generative and analytical AI has greatly impacted numerous industries including the legal industry. Although often slow to change, portions of the legal world are rapidly developing and expanding. Generative AI has spurred on dramatic growth especially in the Alternative Legal Service Providers (“ALSPs”) market which could have great promise in altering the way legal services are provided to customers and potentially in addressing the Justice Gap. However, the use of ALSPs is not a path without risks and flaws.
What is an Alternative Legal Service Provider?
ALSPs are non-traditional legal service providers that, through the use of various technologies often combined with the services of an attorney, provide various legal services to firms or individuals. These systems can streamline many services that would normally take much longer. There are several areas of service that ALSPs generally provide including document review, electronic discovery (“e-discovery”), Intellectual Property portfolio management, contract lifecycle management, and legal staffing.
ALSPs are generally able to offer different fee arrangements than the standard hourly billable rate of law firms. These arrangements can include fixed fees for certain services or subscription-based models. Because of these pay structures, ALSPs generally are able to save costs compared to traditional law firm billing. Additionally, ALSPs have been shown to save time and be more efficient in certain fields.
How are ALSPs Currently Being Used?
According to the Thomson Reuters’ recently released Alternative Legal Service Providers 2025 Report, the ALSP market has grown to an estimated size of $28.5 Billion. More firms have begun using ALSPs for various services including in litigation support and e-discovery. However, many firms have been hesitant to begin to utilize ALSPs as it may pose some risk.
ALSPs have been questioned on the grounds that ALSPs are providing unlicensed legal services. ALSPs often exist and operate outside the purview of State Bars. There is little regulation of ALSPs that provide services not overseen by a lawyer due to their newness. However, when an ALSP is run by lawyers then there is less risk as those are more likely to be within a State Bar’s purview. Due to the nature of generative AI and language learning models, there is also potential risk with these ALSPs that utilize AI with regards to client confidentiality.
What is the future of ALSPs?
In spite of potential concerns with ALSPs which have yet to be resolved, ALSPs are projected to grow in coming years. However, the projected growth is likely to occur mostly within firms already utilizing ALSPs rather than bringing on firms who have refused to begin utilizing ALSPs. Because of the continued and rapid advancement of AI, in its various forms, ALSPs will likely continue to grow in capabilities as well as sophistication, likely expanding services that they are able to provide.
Firms that have thus far been unwilling to use these services from ALSPs will likely continue to be hesitant. Much will likely depend on how regulations are put in place and how these ALSPs are monitored in the future. Despite these potential setbacks, ALSPs will continue to grow in reach in the coming years, developing alongside other major technology. This may allow for further reductions in costs and narrowing the Justice Gap if these services can safely navigate the rapidly changing market.
Further Reading[KJ1]
Alternative Legal Service Provider (ALSP), UTorontoLaw, https://www.youtube.com/watch?v=ecftTb35DwE.
Arthur Burger, Legal Practice Should Make Room for Alternative Service Providers, Bloomberg Law, Opinion Jan. 17, 2023, https://news.bloomberglaw.com/us-law-week/legal-practice-should-make-room-for-alternative-service-providers.
Monica Zent, Why Choose an ALSP, Law Technology Today, Sep. 05, 2023, https://www.americanbar.org/groups/law_practice/resources/law-technology-today/2023/why-choosean-alsp/?login.
Feature: Alternative Legal Service Providers: Should They Be "Alternative?", 35 S. Carolina Lawyer 28.
William Josten, Law Firm Rates in 2023: A new report examines the good, the troubling, and what 2024 may hold, Legal Practice Management Thomson Reuters, Oct 4, 2023, https://www.thomsonreuters.com/en-us/posts/legal/law-firm-rates-report-2023/.
Jennifer Anderson, Understanding Alternative Legal Service Providers, One Legal, June 7, 2024,
[KJ1]I’m also fine if we take this out or something just let me know