At the dawn of January, Litera announced a landmark year in AI adoption within legal firms and corporate legal customers globally, marking a tenfold increase since Q3 2025. In a strategic move, Litera launched Lito, an innovative generative AI agent, in October 2025. Lito seamlessly integrates across Litera’s suite of products, allowing users to compare, review documents, and perform tasks such as crafting post-closing timelines for M&A transactions.
Generative AI has been embedded in several Litera products, including the AI contract review tool, Kira, and the cloud-based drafting capabilities in Litera One. These AI-driven features are now available to customers at no additional cost, part of Litera’s core offerings, demonstrating a commitment to accessibility and innovation.
Widespread Adoption and Growth
Of the 15,000 customers Litera serves, 7,000 now have access to its generative AI-enabled cloud drafting tools, a significant increase as customers transition to the cloud. This growth represents a tenfold increase from Q3 2025 and an addition of 1,000 users between December 2025 and January 2026. Kira’s AI features are universally accessible to its users, while Lito is available to customers utilizing Litera’s core products.
Instead of revealing the number of monthly AI users, Litera opted to share usage statistics. Recent highlights include the generation of over 26,000 document summaries and more than 20,000 AI-powered document comparisons monthly.
Position in the Market
These statistics underscore Litera’s advantageous position in the legal technology market, a head start over emerging competitors like Harvey, which reported 1,000 customers at the end of 2025, and Legora, with over 600 customers. Reflecting on Litera’s market stance, CEO Avaneesh Marwaha stated, “We are a profitable business and we are not looking for Lito to be a growth lever.” Yet, similar to its peers, Litera is driven to boost AI adoption and maintain user engagement. “Lito and Kira can do everything available in the market today,” Marwaha remarked.
A key motivator for offering generative AI features free of charge is encouraging widespread utilization. Moreover, as AI models become more cost-efficient, Litera aims to empower users without passing on costs. “The models are getting cheaper, and we didn’t want to set a price only to reduce it as our costs decrease. It made more sense to empower our users,” Marwaha elaborated.
A Call for Collaboration
To achieve broad AI adoption, Marwaha advocates for increased collaboration, emphasizing, “The data AI relies on is client and law firm data. We want a more open ecosystem.” He is keen on exploring integration opportunities within the ecosystem.
Podcast Insights on AI in Legal Affairs
In the second episode of The Inside View podcast, Legal IT Insider’s editor Caroline Hill and Pinsent Masons Vario’s head of client development for flexible legal services, James Lewindon, discuss the evolution needed in in-house teams to leverage tech-savvy, younger team members. Lewindon, with over two decades of experience in supporting in-house legal teams, believes the legal sector is at an inflection point, with generative AI beginning to fulfill its potential.
The conversation provides insights and tips on effective management styles, emphasizing the need for senior team members to adapt and embrace technological advancements while maintaining legal rigor. These observations are crucial as in-house teams strive to deliver exceptional service in a dynamic environment.
Listeners can access the full episode online, with new episodes of The Inside View released monthly on Spotify and YouTube. Follow and subscribe to devtechtrend.com for the latest updates.
Note: This article is inspired by content from https://legaltechnology.com/2026/01/14/literas-ai-adoption-in-numbers-customers-usage-strategy-and-moat/. It has been rephrased for originality. Images are credited to the original source.