Question 1

How much does e-discovery cost per gigabyte?

Accepted Answer

The all-in cost of e-discovery ranges from $5,000 to $30,000 per gigabyte when you include collection, processing, hosting, review, and production. The wide range reflects differences in review methodology (TAR vs. manual), responsiveness rates, and production complexity. Processing alone costs $20-$75 per GB, hosting runs $15-$30 per GB per month, and review is the largest variable cost. A gigabyte of data typically contains 5,000-15,000 documents depending on file types, and the per-document review cost drives the total. Using TAR can reduce the all-in cost to $5,000-$10,000 per GB while manual review pushes it toward $20,000-$30,000 per GB.

Question 2

What is Technology Assisted Review (TAR) and when should I use it?

Accepted Answer

TAR, also called predictive coding, uses machine learning to classify documents as relevant or not relevant based on training from a human reviewer. After the reviewer codes a seed set of documents, the algorithm scores the remaining documents by relevance, dramatically reducing the number that need human eyes. TAR is most effective for document sets exceeding 50,000 documents, where it typically reduces review costs by 40-70%. Courts have widely accepted TAR as an appropriate review methodology since the 2012 decision in Da Silva Moore v. Publicis Groupe. For collections under 10,000 documents, manual review is often faster and equally cost-effective.

Question 3

How can I reduce e-discovery costs?

Accepted Answer

The most effective strategies are: (1) Narrow the custodian list to only individuals likely to have relevant documents, (2) Apply date range and keyword filters during processing to reduce the review population, (3) Use TAR for first-pass review on large document sets, (4) Negotiate with opposing counsel for native production format to avoid TIFF conversion costs, (5) Use offshore or contract reviewers for first-pass review at $25-$45 per hour instead of associate attorneys at $200-$400 per hour, and (6) Implement litigation hold procedures and information governance policies proactively to reduce the volume of data that accumulates in the first place.

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