Future of Legal Technology and Innovation in South Africa

What shape will the future take? What can South African legal tech developers and legal and judicial practitioners expect from this rapid technological upheaval? The short answer: transformation – deep, sweeping, and inevitable. The long answer: Well, here goes…

Technology is expanding and evolving at a pace like never before. The global legal tech market is projected to achieve a valuation of USD 35.4 billion by the end of 2025, with further growth predicted to escalate to USD 72.5 billion by 2035. And the 25th largest country in the world, South Africa, alone is projected to generate revenue of US$ 335.3 million by 2030, with a compound annual growth of 10.9% in the legal technology market. As digital tools redefine access to justice, the South African legal landscape is on the brink of a major evolution. Not to mention the startup culture which in South Africa is currently flourishing with around 105 legal tech startups in the country. Given the circumstances, it is safe to say that innovations in legal technology have transformed the nature of work and legal practice in South Africa, and what is more, it is still just in its nascent stage.

So, what shape will the future take? What can South African legal tech developers and legal and judicial practitioners expect from this rapid technological upheaval? The short answer: transformation – deep, sweeping, and inevitable. The long answer: Well, here goes…

The South African Legal Technology Network (SALT Network) is a community in South Africa where people come together and make efforts to upskill the legal industry. Through this network, they aim to spread awareness and knowledge about legal and legal tech education through means of courses, articles, podcasts, workshops, and webinars. A lot of momentum has been gained in South Africa through this legal-technological and innovational wave, a few examples of which are discussed below:

The multinational technology giant Microsoft has announced a nearly $300 million investment in South Africa to develop infrastructure for AI and data centres. This significant move, combined with the momentum of the current legal tech boom, signals a transformative era for the country’s legal sector. We can expect the emergence of groundbreaking AI technologies in areas such as legal research, contract analysis, and document review — innovations that promise to dramatically enhance speed and efficiency across legal processes. Central to these advancements are machine learning algorithms, which are increasingly being used to train legal tech platforms. By identifying patterns and performing predictive analysis, these systems can deliver faster, more accurate outcomes on cases with similar issues, helping legal professionals work smarter and more effectively.

Blockchain technology, particularly Distributed Ledger Technology (DLT), is steadily reshaping the legal technology landscape in South Africa. Its potential to provide transparent, tamper-proof records has made it a powerful tool for enhancing trust and efficiency in legal processes. From secure contract execution via smart contracts to immutable case records and decentralised identity verification, DLT is enabling greater accountability and streamlining traditionally slow, paper-heavy workflows. In South Africa, legal innovators and start-ups are beginning to explore its application in areas such as property transfers, notarial acts, and public registries. As regulatory frameworks catch up and digital infrastructure improves, DLT is poised to play a central role in building a more secure, transparent, and accessible legal ecosystem. Going forward, its integration with AI and legal automation tools could unlock even more sophisticated, data-driven legal services tailored to the continent’s unique needs.

Globally, the most profitable cloud computing enterprise, Amazon Web Services (AWS), traces its roots to a web service developed by a Cape Town-based team led by South African Chris Pinkham. Building on this legacy, South Africa introduced a National Policy on Data and Cloud in June 2024. This policy aims to ensure that data generated within the country remains within its borders – a move poised to enhance data security, strengthen privacy frameworks, and improve contract management. For law firms, compliance with this policy is becoming increasingly critical. It not only safeguards client confidentiality but also supports the efficient functioning of legal services such as client communication, document handling, and billing. As legal technology advances, aligning with national data governance will be key to both innovation and accountability in the legal sector.

Research is a cornerstone for professionals across all sectors, but in the legal field, it carries particular weight. Given the constantly evolving nature of laws, staying informed about the latest amendments and new legislations is not just important – it is essential. Although time-consuming, legal research is a non-negotiable part of legal practice. Tools like Lexis+ South Africa are transforming this process by offering tailored legal research solutions specifically designed for the South African legal landscape. With intuitive search features and jurisdiction-specific results, it boosts efficiency and expands access to critical legal knowledge. By equipping legal professionals with timely, accurate information, it empowers them to navigate complexities with confidence and deliver better outcomes.

While the future of legal technology and innovation in South Africa holds immense promise, several significant challenges must be addressed before that potential can be fully realised. Despite the growing momentum in legal tech adoption, the country continues to grapple with deep-rooted educational inequalities. According to the OECD, South Africa ranks 75th out of 76 countries in terms of basic education, which significantly hinders digital literacy and slows the uptake of legal technology.

This educational gap feeds directly into a widening skills shortage. While the legal tech sector presents vast opportunities for innovation and employment, the lack of adequately trained professionals remains a major obstacle. Without a skilled and adaptable workforce, long-term prosperity in this sector remains uncertain.
Moreover, with emerging technologies comes the urgent need for robust regulatory frameworks. Ensuring data privacy, ethical usage, and enforceable accountability mechanisms is a complex but critical undertaking – one that demands forward-thinking policy, deep legal reform, and collaborative research.

The future of legal technology and innovation in South Africa is undeniably bright – if the nation can strategically harness its resources and adapt to the shifting technological landscape. The era of saying AI, blockchain, and cloud computing are ‘the future’ is over – they are here, now! To fully capitalise on this momentum, South Africa must overcome its current challenges and embrace innovation with purpose and urgency. The legal sector is undergoing a dynamic transformation, as evidenced by growing investments in tech-driven solutions and platforms. Driving this evolution are initiatives like Justice Accelerator, which is helping to reshape legal services and workflows across the region. With the right focus and commitment, South Africa is well-positioned to become a leader in legal tech on the continent.

From AI-powered legal research and online dispute resolution platforms to blockchain-enabled court records and automated compliance tools, the legal tech sector in South Africa is poised to leap forward in both efficiency and inclusivity. For developers, this is a moment to build bold, local solutions that respond to real systemic needs. For legal professionals, it is an opportunity to reimagine roles, upskill for the digital era, and become drivers of change rather than passive participants. As the line between law and technology continues to blur, collaboration between technologists, lawyers, and policymakers will be critical in shaping a more accessible, transparent, and just legal future for all South Africans.