CS Disco LLC

Legal AI adoption rose sharply across every measure in DISCO's annual study of legal AI trends, but the industry that spent last year forecasting savings now says it cannot forecast costs. The survey, conducted by Ari Kaplan Advisors, found that in DISCO's 2025 study 32% of participants reported already realizing savings from AI and 55% expected them, while in the 2026 research participants raised unprompted the shift in legal AI pricing away from annual subscriptions toward consumption-based token and credit models and the difficulty of budgeting against it. Pressure to adopt is increasingly coming from the top of the client organization, with pressure from the board or C-suite rising from 18% to 47% of corporate legal respondents in a single year and pressure from the highest levels of company leadership rising from 64% to 76%, while the share of law firms adopting legal AI specifically to meet rising client demand rose from 39% to 64%. Sixty-two percent of participants report using AI agents for work including horizon scanning across jurisdictions, weekly legal hold reporting, data extraction, fact chronologies and document review, though only 10% believe legal AI is becoming exclusively agentic. Confidence in AI for document review has passed a threshold, with 72% of respondents rating themselves as somewhat or very confident using legal AI for document review compared with conventional manual review, up from 53% a year ago, and 58% having integrated legal AI into routine legal processes, up from 35%. DISCO's Director of AI Consulting, James Park, said pricing transparency has become a bigger constraint on adoption than output, and the research also found discovery workloads rising for 53% of respondents, up from 47%, while the share reporting that complex litigation is taking longer fell from 39% to 34%.

CS Disco announced the launch of its Unified Litigation Solution and raised its full-year revenue guidance during its second quarter fiscal 2026 earnings call. Total revenue was $43.1 million, up 13% year-over-year, with software revenue of $36.8 million, also up 13%, and services revenue of $6.3 million, up 18%. Adjusted EBITDA was negative $3.4 million, and the company reiterated its expectation to be adjusted EBITDA positive in the fourth quarter. For fiscal 2026, CS Disco raised total revenue guidance to a range of $172 million to $179 million and software revenue guidance to $147.5 million to $152.5 million, while updating full-year adjusted EBITDA guidance to negative $8 million to negative $5 million. The company also reported that revenue attributable to generative AI and agentic AI capabilities more than tripled year-over-year, and the number of customers generating more than $100,000 over the last 12 months grew to 354, representing $128 million or 77% of total revenue.

DISCO has appointed Andre Mintz, a former senior security executive at Meta, to its Board of Directors effective July 21, 2026. Mintz brings extensive experience in security and privacy risk management, having most recently served as Vice President of Global Security and Privacy at Meta, and previously holding senior roles at Microsoft, Reuters, and FedEx. Chairman Scott Hill stated that Mintz's data security expertise will help maintain customer trust and keep DISCO at the forefront of the evolving information security landscape. Mintz also serves on the board of Q2, a publicly traded financial technology services company.