LegalOn emphasizes that its AI technology is not meant to replace lawyers, but rather to support them, allowing legal professionals to focus on oversight and judgment.

LegalOn Technologies, a leader in legal AI for contracting, has successfully closed a $50 million Series E funding round, bringing its total funding to $200 million.

The funding round was led by Goldman Sachs Alternatives, with participation from existing investor World Innovation Lab and new investors including Mori Hamada, Mizuho Bank, and Shoko Chukin.

LegalOn plans to utilize the new capital to enhance its AI product development and expand its market presence, particularly in the US and UK, where its business has quadrupled over the past year.

Currently, LegalOn serves over 7,000 organizations across Japan, the U.S., and the U.K., holding a strong position in the Japanese market by supporting 25% of public companies.

Daniel Lewis, CEO of LegalOn, emphasized that the funding will help develop AI solutions that alleviate time-consuming tasks in legal departments, thereby improving workflow efficiency.

LegalOn's AI tool, Review, can cut contract review time by up to 85% by identifying risks and suggesting edits based on attorney-developed playbooks tailored to each enterprise's legal standards.

LegalOn's approach differentiates it from competitors by utilizing attorney-drafted content rather than generic AI models, ensuring more accurate and consistent contract reviews.

The company has also announced a strategic collaboration with OpenAI, aiming to accelerate product development and innovation in legal technology.

With over 600 employees, LegalOn plans to introduce AI agents that will assist legal teams from request to resolution by 2025.

Founded in Japan in 2017 by former corporate attorneys Nozomu Tsunoda and Masataka Ogasawara, LegalOn initially operated as LegalForce and has since expanded to the U.S. in 2022.

Recently, LegalOn launched a Matter Management tool designed to help legal teams manage contract requests and collaborate effectively across departments.