Editor’s Note: The Summer 2024 eDiscovery Review, Task, and Cost Data Points report offers essential insights for eDiscovery providers navigating a complex and competitive market. As document review continues to be one of the most significant cost components in eDiscovery, understanding the latest data on review tasks, spending, and costs is crucial for maintaining a competitive advantage. This report, systematically updated since its original release in June 2019, integrates data from the July 2024 pricing survey and the 2023-2028 eDiscovery Market Size Mashup, providing a comprehensive view of current market dynamics.
This report is particularly significant for providers as it may represent the final baseline report from ComplexDiscovery OÜ before generative artificial intelligence (GenAI) begins to reshape the eDiscovery review landscape. Although GenAI is not the primary focus of this report, its future impact on the market is becoming a topic of increasing industry conversation. These GenAI trends will be incorporated into the 2024 update of ComplexDiscovery OÜ’s market size forecast, offering providers an updated look at the changing market dynamics.
For now, this report concentrates on non-GenAI-assisted document review processes and their associated costs. The adoption of GenAI is expected to be gradual, contingent on regulatory, judicial, and legal counsel (business and legal) acceptance. During this period of adjustment, the review market may temporarily expand as providers begin experimenting with the technology, particularly for internal investigations and select cases.
Over time, as AI-driven efficiencies take hold, the market may experience a reduction in review-related revenue on a per-matter basis, with estimates suggesting reductions between 10% and 30% per matter over the next three to five years. However, these revenue shifts will vary significantly based on the type of matter, data volume, and specific AI models employed. Providers should be cautious about generalizing these impacts, as individual cases may see different outcomes. Importantly, the efficiencies introduced by AI could also allow providers to manage higher volumes of cases more quickly, potentially offsetting revenue reductions through increased throughput and case-handling capacity.
For eDiscovery providers, long-term success will depend on adapting to these technological shifts by incorporating AI-enabled services that enhance, rather than replace, traditional document review. Providers should focus on delivering high-value offerings, such as complex review and strategic consulting, while remaining agile in a rapidly changing environment. However, this report serves as a vital baseline resource for providers to assess the current economic conditions of eDiscovery review and prepare for the evolving market dynamics that may feature more prominently in future reports.
Content Assessment: Calm Before the Storm? A Summer 2024 Look at eDiscovery Review Task, Spend, and Cost Data Points
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A short percentage-based assessment of the qualitative benefit expressed as a percentage of positive reception of the recent article from ComplexDiscovery OÜ titled, “Calm Before the Storm? A Summer 2024 Look at eDiscovery Review Task, Spend, and Cost Data Points.”
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Industry Research – Markets
Calm Before the Storm? A Summer 2024 Look at eDiscovery Review Task, Spend, and Cost Data Points
ComplexDiscovery Staff
Within the context of data discovery and legal discovery, the task of review consists of the evaluation of digital information to identify relevant and responsive documents to produce, and privileged documents or confidential or sensitive information to withhold. It is one of three tasks, along with collection and processing, that make up the core tasks typically associated with the process of eDiscovery.
In considering the relative costs of the three core eDiscovery tasks of collection, processing, and review, in 2012, the task of review represented approximately 73% of the total expenditure for eDiscovery tasks, with processing representing 19% of expenditures and collection representing 8% of expenditures. (1) Based on market modeling since 2012, the relative cost of the eDiscovery task of review in 2023, as published in November 2023, decreased and was estimated to be 65% of expenditures. Additionally, in 2023, the core eDiscovery task of processing was estimated to represent 20% of expenditures, and the core eDiscovery task of collection was estimated to represent 15% of expenditures. (2) This shift indicates an evolving emphasis on the initial stages of eDiscovery, likely due to the growing complexity and volume of data sources.
Chart 1: Relative Task Expenditures for eDiscovery
Relative Task Expenditures for Core eDiscovery Tasks – 2023 Overview
Market Opportunity for Review: The Spend
In evaluating the market spend for the eDiscovery task of review through the lens of relative task expenditures and current modeled market estimations, the review task commands the largest share of eDiscovery spending, although its percentage is forecasted to decrease from 65% in 2023 to 60% by 2028. In terms of dollar value, however, the spending on review is expected to see a significant rise from $9.81 billion to $13.59 billion. This indicates that while technology and efficiencies may be reducing the relative cost of review as part of the total eDiscovery spend, the absolute cost is growing due to the increasing volume and complexity of data needing review. This trend underscores the ongoing challenge of sifting through vast amounts of data to find relevant information and the importance of investing in sophisticated review tools and technologies. (3)
Chart 2: eDiscovery Market for Review
eDiscovery Market for Review (2023-2028)
Review Pricing Data Points: The Cost
While many individual elements contribute to the cost of review, results from the most recent semi-annual eDiscovery Pricing Survey (4) may provide insight into key current, pre-GenAI costs and cost trends related to the eDiscovery task of review. These costs include the per GB cost to conduct predictive coding as part of technology-assisted review during the document review phase of eDiscovery, the cost per hour for document review attorneys to review documents during the review phase of eDiscovery, and the cost per document for document review attorneys to review documents during the review phase of eDiscovery.
Responses from the most recent semi-annual eDiscovery pricing survey regarding these review-related cost questions posed to cybersecurity, information governance, and legal discovery professionals are provided below for your consideration.
Chart 3: What is the per GB cost to conduct predictive coding as part of a technology-assisted review for 250 GB or less?
Chart 4: What is the per GB cost to conduct predictive coding as part of a technology-assisted review for 251 GB or more?
Chart 5: What is the cost per hour for document review attorneys to review documents for an onsite managed review?
Review Pricing_ Per Hour Cost for Document Review Attorneys to Review Documents Onsite – Summer 2024
Chart 6: What is the cost per hour for document review attorneys to review documents for a remote managed review?
Review Pricing_ Per Hour Cost for Document Review Attorneys to Review Documents Remote – Summer 2024
Char 7: What is the cost per document for document review attorneys to review documents for an onsite managed review?
Chart 8: What is the cost per document for document review attorneys to review documents for a remote managed review?
The Storm is Coming
With AI technologies poised to bring both challenges and opportunities, those providers who embrace innovation and adapt their business models will be better positioned to succeed in the years to come. (5) As initial market shifts driven by GenAI begin to take shape, this report provides a valuable foundation from which providers can assess their strategies, optimize efficiencies, and enhance their service offerings. The next phase of the eDiscovery market will likely favor those who can harness AI to create more value while managing costs effectively, ensuring long-term growth and competitiveness.
References
(1) Pace, N., & Zakaras, L. (2012). Where the Money Goes: Understanding Litigant Expenditures for Producing Electronic Discovery (p. xiv, xv). RAND Institute for Civil Justice.
(2) Robinson, R. (2023). The Next Five Years in eDiscovery: Market Size Forecast for 2023-28. Retrieved from https://complexdiscovery.com/the-next-five-years-in-ediscovery-market-size-forecast-for-2023-2028/
(3) Ibid.
(4) Robinson, R. (2024). What’s New in eDiscovery Pricing? Summer 2024 Market Report. Retrieved from https://complexdiscovery.com/whats-new-in-ediscovery-pricing-summer-2024-market-report/.
(5) Robinson, R. (2024). eDiscovery Review in Transition: Manual Review, TAR, and the Role of AI. Retrieved from https://complexdiscovery.com/ediscovery-review-in-transition-manual-review-tar-and-the-role-of-ai/.
Assisted by GAI and LLM Technologies
Additional Reading
- Shaping eDiscovery Strategies: Winter 2024 Pricing Report
- Peaks and Valleys? Summer 2023 eDiscovery Pricing Survey Results
- ComplexDiscovery Business Confidence Surveys
Source: ComplexDiscovery OÜ
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