Casetext is a legal technology company that develops artificial intelligence-powered tools for legal research. Founded in 2013, the company provides a platform that helps lawyers and legal professionals search case law, statutes, and other legal documents more efficiently. In August 2023, Casetext was acquired by Thomson Reuters, a Canadian multinational content-driven technology conglomerate, for approximately $650 million in cash.
The company's flagship product, CoCounsel, uses large language models to perform legal research tasks, including document review, contract analysis, and deposition preparation. CoCounsel was built on OpenAI's GPT-4 model and is designed to generate legal summaries and identify relevant precedents. Casetext's technology integrates with Thomson Reuters' Westlaw, a leading legal research service, to enhance its capabilities.
History and Founding
Casetext was co-founded in 2013 by Jake Heller, Laura Safdie, and Pablo Arredondo. The idea emerged from Heller's experience as a lawyer and his desire to make legal research more accessible and affordable. The company initially launched as a crowdsourced legal database, allowing users to upload and share legal briefs and opinions. Over time, Casetext shifted focus to developing AI-driven research tools, leveraging advances in artificial intelligence and machine learning.
In 2018, Casetext introduced its first AI-powered research assistant, CARA (Case Analysis Research Assistant), which used natural language processing to analyze briefs and suggest relevant case law. CARA was later integrated into the broader Casetext platform. The company raised significant funding from investors, including Union Square Ventures and Canvas Ventures, to support its growth.
Acquisition by Thomson Reuters
In August 2023, Thomson Reuters announced the acquisition of Casetext for $650 million in cash. The deal was completed in the same month, and Casetext became part of Thomson Reuters' Legal Professionals segment. The acquisition aimed to strengthen Thomson Reuters' position in the legal AI market, particularly in the face of growing competition from startups and tech giants. Thomson Reuters, which was formed in 2008 through the merger of the Thomson Corporation and Reuters Group, had already invested heavily in AI, including the development of its own AI tools for legal research.
The acquisition was seen as a strategic move to integrate Casetext's CoCounsel with Westlaw, Thomson Reuters' flagship legal research platform. Following the acquisition, CoCounsel was made available to Westlaw users, allowing them to access AI-generated legal insights directly within the Westlaw interface. This integration was part of Thomson Reuters' broader strategy to embed AI across its product suite.
Technology and Products
Casetext's core technology is based on generative AI and natural language processing (NLP). CoCounsel, the flagship product, is designed to assist lawyers with tasks such as:
- Legal research: Finding relevant case law, statutes, and regulations.
- Document review: Analyzing contracts and other legal documents for key terms and risks.
- Deposition preparation: Identifying potential questions and areas of inquiry.
- Memo drafting: Generating legal memos and summaries.
CoCounsel uses transformer models, a type of deep learning architecture, to understand and generate legal text. The system was trained on a large corpus of legal documents, including case law, statutes, and secondary sources. Casetext also developed tools for contract analysis, such as Contract Review, which uses AI to flag unusual clauses and suggest revisions.
Impact and Reception
Casetext's AI tools have been adopted by law firms, corporate legal departments, and legal aid organizations. Proponents argue that AI-powered legal research can reduce costs and improve access to justice by automating routine tasks. Critics, however, have raised concerns about accuracy, bias, and the potential for AI to replace human lawyers. Casetext has emphasized that its tools are designed to augment, not replace, legal professionals, and that human oversight remains essential.
In 2023, Casetext was named one of Fast Company's Most Innovative Companies in the legal category. The acquisition by Thomson Reuters was widely covered in the legal and technology press, with analysts noting the growing importance of AI in the legal industry. As of 2025, CoCounsel continues to be developed and integrated into Thomson Reuters' offerings, with plans to expand its capabilities to other legal markets.
See Also
- OpenAI
- Westlaw (Note: Westlaw is a product of Thomson Reuters, but the slug is not in the provided list; use Thomson Reuters instead)
- Legal technology (Note: slug not in list; use artificial intelligence)
References
This article is based on publicly available information and sources as of 2025.