Since 2007, Lexplosion Solutions has been pioneering innovative legal technology solutions by combining technology with deep regulatory expertise. From the outset, we have believed that technology is a critical enabler of sustainable business growth. The State of Legal Innovation in Asia-Pacific (SOLIA) Report 2025, launched at TechLaw.Fest 2025 by the Asia-Pacific Legal Innovation and Technology Association (ALITA) in collaboration with LexisNexis, reaffirms this belief. The report reveals how technology, particularly AI, is transforming the legal ecosystem across the region.
This year’s edition, returning after a five-year break, includes insights from a survey of 287 legal professionals across APAC and jurisdictional perspectives from 11 regions. It offers a timely snapshot of how lawyers are using AI, their perceptions of its benefits and risks, how return on investment is measured, and the wider impact on business and operating models.
For anyone at the intersection of law, business, and technology, the findings are both critical and instructive. For Lexplosion, it provides an opportunity to reflect on our journey as a legal technology innovator for almost two decades.
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Key Findings from the SOLIA Report 2025
Here are some of the key findings of the SOLIA report 2025:
Trends in AI Adoption in the Legal Sector
The SOLIA survey found that most APAC respondents already use AI in their legal work, with corporate legal departments leading the way compared to law firms. Adoption is especially strong in Asia across Singapore, Hong Kong and Mainland China, while Australia and New Zealand remain more cautious.
Day to day use is also higher among in-house lawyers compared to law firms. General purpose tools such as ChatGPT are widely applied to drafting, summarisation, and research, while specialist AI platforms are preferred for document review and compliance workflows.
These findings make one thing clear. AI is no longer optional. It is now firmly embedded in the legal toolkit across APAC.
Opportunities and Benefits of using AI in Legal Sector
The SOLIA Report highlights the tangible value of AI across legal and compliance functions. According to the survey, respondents noted time savings on routine tasks, efficiency gains and competitive advantage. Law firms reported that AI helps them handle higher case volumes, while in-house teams emphasised its role in meeting internal client expectations.
The Challenges of Responsible AI
Yet alongside the opportunities come serious challenges. The SOLIA Report notes that accuracy remains the top concern, with many lawyers worried about AI hallucinations. Confidentiality risks are also front of mind, especially in sensitive matters. Ethical concerns weigh heavily too, from accountability for misuse to fears of de-skilling and over-reliance on just a few AI providers. Interestingly, the report notes that many organisations still lack formal AI policies.
Structural Shifts in the Legal Profession
The report makes it clear that AI is driving profound structural change in legal services. Law firms anticipate greater reliance on AI for research and review and expect to see more non-traditional career paths emerging. In-house departments increasingly view technology skills as critical, are preparing to allocate larger budgets for tech adoption, and are bringing in more professionals from non-legal backgrounds.
On the client side, the demand is shifting towards cost effectiveness, specialist expertise, and strategic advisory support. Law schools are under mounting pressure to adapt, with calls for AI literacy and interdisciplinary training growing louder. The report sends a clear signal that AI is set to disrupt traditional billing models, and many respondents believe the billable hour faces significant challenges ahead.
Jurisdictional Overview
The SOLIA Report provides a detailed snapshot of eleven jurisdictions, each with its own approach to AI and legal innovation. While Hong Kong, China, Japan, South Korea, Singapore, Malaysia, Philippines, Thailand, Australia, New Zealand and India each reveal distinct priorities, there are common threads across the region. Governments, judiciaries, legal professionals and legal technology providers are all playing pivotal roles in innovation and shaping adoption. Challenges remain, particularly around risks, costs and scalability, but regulatory guardrails are beginning to emerge. What stands out is the overall optimism across the region.
ALITA’s Role: Building Ecosystems
The SOLIA Report also highlights ALITA’s broader role in strengthening the region’s legal innovation ecosystem. Its pioneer APAC Legal Innovation Ecosystem Map categorises solutions, helping firms and in-house teams more easily navigate the growing legal technology landscape. The Buyer’s Guide Primer offers a practical framework, especially valuable for SMEs, to evaluate tools across dimensions such as strategic fit, compliance, usability, vendor support and future readiness. The report also showcases ALITA’s community-building initiatives, celebrating innovators through the ALITA Awards, engaging students through its internship programme, and supporting grassroots leadership via the ALITA Ambassadors programme.
Lexplosion’s Reflections
At Lexplosion, we began our journey when legal technology innovation was still at a nascent stage. Over the past two decades, we have seen first-hand what the report reveals-the tangible value that AI brings. Tasks that once required days of manual compliance monitoring can now be completed in minutes. Technology has turned compliance from a burden into a competitive advantage, allowing teams to focus on strategy and growth. Today, AI enables us to help businesses stay ahead of regulatory changes, minimise compliance risks and simplify complex obligations. By combining AI with our deep regulatory expertise, we empower businesses to transform compliance into a strategic asset.
At the same time, we recognise the element of risks. Errors in compliance can mean reputational harm, regulatory penalties or financial losses. That is why we have embedded governance frameworks, checks and human oversight into all our AI-driven compliance solutions to safeguard accuracy, accountability and trust. The broader structural shifts identified in the report resonate with our own story. From the start, we have been committed to actionable insights and outcome-driven approaches. AI helps us deliver real value rather than measuring success by hours worked.
We are also proud to play a role in the wider ecosystem. Lexplosion’s solutions are featured on ALITA’s Ecosystem Map, and our CEO, Indranil Choudhury, serves as one of ALITA’s ambassadors. These recognitions underscore our commitment to advancing regulatory technology and compliance innovation across the region.
Global expansion has always been part of our vision, but as the jurisdictional overview makes clear, it is a complex journey. Every country presents its own regulatory frameworks, cultural norms and languages to navigate. By combining scalable frameworks with collaboration from local partners, we seek to ensure jurisdiction-specific accuracy while extending our solutions beyond India into Singapore, Malaysia, Indonesia, Bangladesh, Nepal, Sri Lanka, the United Arab Emirates (UAE), Australia and the United Kingdom.
The message of the SOLIA Report 2025 is clear: AI will not replace lawyers or compliance professionals, but those who embrace it responsibly will define the future of the profession. For us, this means embedding governance, transparency and accessibility into every solution, ensuring compliance is within reach for businesses of all sizes, not just large corporates. We view the SOLIA Report 2025 as a roadmap for how Asia Pacific’s legal and compliance ecosystems can evolve responsibly in the age of AI. It also shows that the region offers enormous potential not only to advance domestic legal innovation but also to shape a more connected and resilient regional ecosystem.
For Lexplosion, the SOLIA Report 2025 is both validation and an inspiration. Validation of the journey we began to simplify compliance in one of the world’s most complex regulatory environments, and inspiration to keep pushing boundaries, expanding globally and continue innovating legally.
Authored by: Swapna Umakanth & Antara Dasgupta
Disclaimer
This content is intended for informational purposes only and does not constitute a legal opinion. Despite our efforts to maintain accuracy, we do not make representations, warranties or undertakings regarding the quality, completeness or reliability of the content. Readers are encouraged to seek legal counsel prior to acting upon any of the information provided herein. This content, including the design, text, graphics, their selection and arrangement, is Copyright 2024, Lexplosion Solutions Private Limited or its licensors. ALL RIGHTS RESERVED, and all moral rights are asserted and reserved.
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