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DISCO sells cloud-based artificial intelligence software that helps law firms and companies find, review, and manage documents for lawsuits and investigations.
DISCO is a software company for lawyers. When companies sue each other, or regulators come asking questions, or a deal needs checking, the two sides have to hand over huge piles of emails, contracts, chat logs, and other documents. That process is called ediscovery, and it used to mean rooms full of junior lawyers reading page after page. DISCO sells cloud software that uses artificial intelligence to search those piles, group similar documents together, and flag which ones matter, so a small legal team can get through millions of files without hiring an army of reviewers.
The company also sells tools for the rest of a case: legal hold to make sure evidence isn't deleted, case management to keep a matter organized, and document review that runs in the browser. Its customers are mostly law firms and corporate legal departments, and they pay subscription fees based on how much data they store and how many users they have. The pitch is speed and simplicity. DISCO built its product from scratch for the cloud, so clients can load data and start reviewing in hours rather than weeks, and its AI does the tedious first pass that humans used to do by hand. It competes with older, heavier ediscovery suites and with a growing pack of well-funded rivals, including Relativity and Everlaw, and larger legal-tech players such as Thomson Reuters and LexisNexis's parent RELX. DISCO was founded in Austin, Texas, in 2013 by engineers who thought legal software felt stuck in the past, and it went public on the New York Stock Exchange in 2021 during a hot moment for legal tech. The good years did not last. Growth slowed sharply as law firms tightened budgets and competitors cut prices, and the company has consistently lost money. In 2024 it brought in a new chief executive and began pushing harder into AI features, betting that generative AI can make document review dramatically cheaper and reopen the door to growth. Whether that bet pays off is the central question for investors.
The business is small and unprofitable, which makes it fragile. It spends heavily on research and development and sales, and it does not generate enough cash to fund itself, so it relies on the cash it raised when it went public. That cushion buys time, but it also means the company must show real demand soon or face pressure to cut costs or sell itself. For now, DISCO is a bet that the boring, expensive work of legal document review can be automated by software that lawyers actually enjoy using.
Saved answer 路 last researched 15 Nov 2026