LegalZoom is increasingly using artificial intelligence across customer service, legal workflows and sales, with agentic AI now fully resolving approximately 40% of customer-care inquiries end-to-end while AI tools have reduced trademark classification search time by 55%.
The company’s AI-powered customer-care system is handling thousands of interactions and generating higher customer satisfaction, according to LegalZoom. Rather than using AI only to assist human agents, the platform is increasingly capable of resolving entire customer inquiries without human intervention.
LegalZoom is also applying AI directly to its legal-services workflows. AI-powered research and drafting have reduced trademark classification search time by 55% and accelerated patent drafting by 30%, while automating other processes to improve turnaround times and increase attorney capacity.
The company is deploying AI in sales operations as well. AI-powered coaching has reduced missed sales opportunities by approximately one-third, helping employees identify more opportunities to offer additional LegalZoom products and services.
LegalZoom’s broader strategy combines AI with a large human expert network rather than relying on fully automated legal services. The company has more than 1,000 attorneys through its owned law firm and independent attorney network, along with business managers, IP professionals and customer-care personnel. LegalZoom identifies human-in-the-loop expert assistance as its fastest-growing category and estimates a $34 billion serviceable addressable market for expert assistance alone.
The company’s AI distribution strategy is expanding beyond its own platform. LegalZoom said it ranks first for brand mentions and citations in ChatGPT among direct LLC formation competitors and first for brand mentions across AI platforms. Its initiatives include ChatGPT formation guidance, an attorney integration with Claude, legal-services integration with Copilot and a partnership with Counsel.
Strategic partnerships are becoming a larger customer acquisition channel as well. Partner volumes represented 11% of total orders in Q2 2026, up from 4% a year earlier, driven by a broader partner portfolio, deeper integrations and increased investment in partner go-to-market programs.
The technology push comes as LegalZoom’s financial performance improves. Q2 revenue increased approximately 7% year-over-year to $205 million, while Adjusted EBITDA increased 18% to $46 million. Adjusted EBITDA margin increased to 22%, and free cash flow reached approximately $34 million, representing a 16% margin.
Subscription revenue increased 11% to $133 million. Subscription units declined to 1.892 million from 1.955 million a year earlier, but average revenue per subscription unit increased to $270 from $256, reflecting the company’s move toward higher-value subscription offerings.
LegalZoom’s strategy now centers on optimizing subscriptions, reorienting customer acquisition and using AI to deliver legal expertise more efficiently. Management believes AI can simultaneously improve the customer experience, increase the capacity of its legal professionals and create new AI-first legal products with conversational interfaces.
