Understanding eDiscovery Costs and How to Manage Them

What Are eDiscovery Costs?

eDiscovery costs simply refer to the total expenses involved in managing electronically stored information (ESI) during the eDiscovery process. This includes collecting, processing, reviewing, and producing digital data for litigation, investigations, or regulatory matters.

Many firms frequently observe a substantial increase in discovery expenditures once their data expands in both quantity and intricacy. Hosting, software, vendor bills, and reviewer time can quickly stack up, especially with mountains of paperwork.

Pricing also varies widely across providers. Some bill by the gigabyte, while others offer per-matter or subscription plans that make budgeting easier to predict.

At its core, eDiscovery spending comes down to balance: collecting enough data to build a solid case without paying for unnecessary storage or review work.

To keep legal costs down, firms are investing in smarter technology and clearer work plans. This is because digital evidence now factors into almost every case.

Main Factors That Drive eDiscovery Pricing

If you’ve ever reviewed an eDiscovery bill and wondered how it got so high, it usually comes down to a few key factors.

The final bill for discovery work usually depends on how much data you have to review, how efficiently you set up the entire process, and the billing method your service provider uses.  

Here are a few key factors to keep in mind: 

• Data volumes: The sheer amount of ESI can quickly raise costs. More data means more storage, processing, and review work.
• Data collection: Gathering files from multiple sources, like email servers, chat platforms, and cloud storage, adds time and complexity.
• Review costs: Document review remains a significant expense since it often requires both legal automation tools and human oversight.
• Labor costs: The number of people involved in tagging, redacting, or validating files can greatly influence the total.
• Unnecessary data: Collecting irrelevant or duplicate files leads to higher hosting and processing fees.
• eDiscovery software providers: Different platforms follow their own pricing rules.
• Hidden costs: Unexpected expenses, like metadata recovery or reprocessing, can quietly add to your total.

Understanding these drivers early helps you plan more effectively and reduce unnecessary spending throughout the eDiscovery process.

Common Mistakes That Increase eDiscovery Costs

You might organize a discovery project well, but forgetting small items will quickly make it expensive. Projects often run way over budget. A lot of those extra costs come from errors that were totally preventable, such as:

Collecting Unnecessary or Duplicate Data

Gathering every file in sight may seem thorough, but it usually leads to higher costs during data processing and review. Data minimization (collecting only what’s relevant) helps reduce eDiscovery costs and shortens the overall workflow.

Duplicate files or outdated storage systems add another layer of waste. They increase hosting fees and reviewer time without contributing anything useful to the case.

Skipping Early Case Assessment

Early case assessment (ECA) lets you see all your case data clearly, well before you start the full review. Skipping this step often results in more documents to process, more time wasted, and higher eDiscovery costs.

Law firms find that modern eDiscovery’s initial data scans make a real difference. These first-look tools quickly shrink the volume of information to sort through, sharpen the accuracy of discoveries, and maintain financial discipline from the start. 

Relying Too Heavily on Manual Review

Human checks matter, yet relying too heavily on them bogs down work and wastes money. A balanced approach that combines automation with human judgment helps maintain accuracy while managing eDiscovery costs.

Tools that highlight duplicate or irrelevant content can save hours during the review process and lower total spend.

Ignoring Data Retention and Deletion Policies

Skipping proper retention and deletion policies often means dealing with old or irrelevant data that only adds to collection and review costs. Poor governance also increases the risk of data breaches, especially if sensitive files sit in legacy systems.

That’s why establishing clear policies keeps your records organized, compliant, and easier to manage during discovery.

Choosing Vendors Without Understanding Pricing Terms

Don’t assume every eDiscovery company bills you the same way. Unexpected charges for data storage, user access, or reprocessing often push your total bill way past your first guess.

Remember: Always check the pricing details upfront and clarify what’s included before committing to a provider.

Failing to Track Progress or Document Review Decisions

It’s easy to waste time redoing tasks when there’s no clear record of what’s been reviewed or approved. Gaps in documentation can also lead to costly mistakes during production.

A good way to avoid this problem is by using project dashboards and audit trails. These help teams monitor every step, maintain defensibility, and reduce rework throughout the discovery process.

Best Practices to Control eDiscovery Spending

Luckily, the spots where your expenses grow the most are also the places you can save significantly. With a few strategic habits and the correct lawyer tools, you can keep discovery efficient, defensible, and within budget.

1. Use Automation and AI to Reduce Manual Work

Discovery requests can easily overwhelm any legal department. When each case brings thousands of pages of electronic data, even small tasks can turn into a major source of eDiscovery expenses. Many teams try to handle it manually, but the sheer volume makes that approach inefficient and costly.

Law firm automation changes that. AI-powered tools can quickly identify relevant files, eliminate duplicates, and prepare productions without the endless page-turning.

For example, instead of assigning several paralegals to review one client’s emails line by line, automation can surface responsive messages in seconds.

In other words, bringing eDiscovery in-house with the right legal AI tools not only helps reduce costs but also gives you more control over timing and quality.

That’s exactly what Briefpoint’s Autodoc is built for. Upload your RFPs, case files, and productions, and Autodoc instantly drafts fully cited Word responses, complete with Bates numbering and page-level citations. You can verify results, make edits, and serve your production in minutes.

With automation handling the tedious work, your team can focus on strategy and client outcomes rather than administrative tasks. Book a demo today to see how fast discovery can actually move.

2. Start With Early Case Assessment

Before diving into the review phase, take time to understand what data you’re working with. Early case assessment helps you evaluate the scope of your electronically stored information and pinpoint what’s actually relevant.

Skipping this step often leads to unnecessary review hours and inflated eDiscovery costs. So, a quick, structured assessment can save both time and money down the line.

Here’s what a solid ECA process includes:

• Identify key custodians and data sources: Know where your data is stored and who manages it.
• Filter out irrelevant content early: Narrow the data set to focus only on relevant information.
• Estimate data volumes and timelines: Helps forecast workloads and project costs accurately.
• Use analytics to spot duplicates or patterns: This reduces the time spent sifting through vast amounts of data.

Legal teams that apply ECA at the start often cut eDiscovery costs significantly. It sets a clear direction for the rest of the process and keeps your review focused on what matters.

3. Standardize Data Collection and Review Workflows

One of the easiest ways to cut wasted time during discovery is to build a repeatable process and stick to it.

When every case follows a different system, even simple steps like finding chat messages or sorting documents can slow things down. That inconsistency not only causes delays but also drives up total litigation spend.

Meanwhile, a consistent legal workflow brings order to the chaos. For instance, collecting data from emails, messaging apps, and shared drives using the same structure every time keeps everything aligned and easy to track.

It also creates clear communication between attorneys and staff since everyone knows exactly where files belong and how they move through review.

And with the best eDiscovery software, these workflows almost manage themselves. For starters, automation can log collection details, group similar documents, and show real-time progress, so you always know what’s done and what’s next.

4. Work With Transparent eDiscovery Providers

Unclear pricing models can make discovery budgeting unpredictable. Some firms only learn about extra charges after the invoice arrives, which is when it’s too late to adjust.

However, working with transparent eDiscovery providers helps you understand exactly what you’re paying for and avoid unwanted surprises as your data grows.

When evaluating an eDiscovery platform, look for:

• Flat fee or capped pricing: Predictable billing makes it easier to manage ongoing matters.
• Clear storage terms: Know how pricing changes as you upload more data or archive old files.
• Defined user seats: Check how many team members can access the platform without triggering extra costs.
• Detailed scope of services: Make sure data processing, hosting, and support are included upfront.
• Accessible dashboards and reports: Transparency shouldn’t stop at billing; insight into project progress and usage matters, too.

Choosing the best provider goes beyond technology. It also revolves around building a partnership where pricing is clear, the terms are fair, and you have the confidence to forecast eDiscovery costs accurately across every case.

5. Train Your Team on Defensible Discovery Practices

Defensible discovery practices are the rules that keep every step of the eDiscovery process clear and legally solid. The point is to be able to show that data was handled the right way, if anyone questions how evidence was collected or reviewed.

Training your team with these eDiscovery best practices strengthens credibility and prevents costly disputes later on. Key areas to focus on include:

• Project management: Define responsibilities, timelines, and checkpoints to keep every task organized.
• Data governance: Set clear policies for data storage, retention, and access control to avoid confusion later.
• Chain of custody: Track who accessed or modified files to preserve authenticity throughout the process.
• Communication with opposing counsel: Keep all correspondence professional and well-documented to prevent disputes.
• Documentation and reporting: Maintain detailed records that demonstrate how evidence was handled and reviewed.
• Billing awareness: Review how billable hours are spent and identify where automation or improved reviewer training can save time.

6. Adopt Technology With Predictable Pricing Models

Choosing the right software can reshape how legal professionals manage both costs and workloads. Many teams still depend on outside vendors for discovery, which often leads to slow turnarounds and unpredictable billing.

Using a platform with clear, fixed pricing brings transparency and control back in-house. Modern eDiscovery tools combine automation, analytics, and project tracking in one plan, so there are no hidden fees or surprise add-ons later.

This approach makes budgeting easier and ensures that resources stay focused on relevant data instead of redundant tasks. In the long run, consistent pricing helps firms cut costs and rely less on external providers.

Reduce eDiscovery Costs and Work Smarter With Briefpoint

Keeping discovery affordable starts with a structured process and an optimal tech stack.

When workflows are consistent, teams are well-trained, and tools are reliable, managing eDiscovery costs becomes far more predictable. Automation then helps transform that structure into real, measurable cost savings.

Briefpoint streamlines every part of discovery. Its Autodoc feature automatically drafts Bates-numbered, Word-formatted responses with page-level citations in minutes, replacing hours of manual review and formatting.

With clear pricing and an intuitive platform, Briefpoint gives legal teams both speed and control over their discovery process.

If you’re ready to simplify your workflow and cut eDiscovery costs, schedule a demo with Briefpoint today!