arXiv:2507.07748v1 Announce Type: cross Abstract: This paper establishes the first comprehensive review of Large Language Models (LLMs) applied within the legal domain. It pioneers an innovative dual lens taxonomy that integrates legal reasoning frameworks and professional ontologies to systematically unify historical research and contemporary breakthroughs. Transformer-based LLMs, which exhibit emergent capabilities such as contextual reasoning and generative argumentation, surmount traditional limitations by dynamically capturing legal semantics and unifying evidence reasoning. Significant progress is documented in task generalization, reasoning formalization, workflow integration, and addressing core challenges in text processing, knowledge integration, and evaluation rigor via technical innovations like sparse attention mechanisms and mixture-of-experts architectures. However, widespread adoption of LLM introduces critical challenges: hallucination, explainability deficits, jurisdictional adaptation difficulties, and ethical asymmetry. This review proposes a novel taxonomy that maps legal roles to NLP subtasks and computationally implements the Toulmin argumentation framework, thus systematizing advances in reasoning, retrieval, prediction, and dispute resolution. It identifies key frontiers including low-resource systems, multimodal evidence integration, and dynamic rebuttal handling. Ultimately, this work provides both a technical roadmap for researchers and a conceptual framework for practitioners navigating the algorithmic future, laying a robust foundation for the next era of legal artificial intelligence. We have created a GitHub repository to index the relevant papers: https://github.com/Kilimajaro/LLMs_Meet_Law.