While AI is now applied to everything from healthcare to customer support, no use case has yet been as popular or lucrative as writing code.
Jack Newton, co-founder and CEO of Clio, a Canadian law firm management software company, is convinced that legal technology is poised to become the next big winner of the LLM era. It’s a self-serving claim — Clio, 18, is a legal technology company — but the numbers are hard to dismiss.
Clio saw its revenue growth accelerate significantly after integrating AI into its offer in 2023. The company surpassed $200 million in annual recurring revenue (ARR) in mid-2024, doubled that figure late last year, and just announced its ARR hit $500 million.
“LLMs are great for coding because all the code that exists in the world is a huge repository to practice on,” Newton said. “The analogy with law is very clear.”
Law firms hold huge corpora of contracts and agreements, providing a rich textual database from which AI models can learn.
“Technology companies and lawyers are recognizing the enormous benefits that LLMs can bring to the legal field,” Newton said.
Clio isn’t the only legal tech company seeing a massive increase in revenue thanks to AI.
Four-year-old Harvey, which offers an LLM AI to law firms, has reached an ARR of $190 million by the end of 2025, shared co-founder and CEO Winston Weinberg. is LinkedIn. Harvey’s main rival, Legora, announced last month that it had reached $100 million in ARR barely 18 months after the launch of its platform.
Although the definition of ARR by the legal technology community has been under surveillance recentlythe possibility of applying AI to law is entirely logical, since LLMs can automate the field’s most time-consuming tasks, such as reviewing and writing documents.
Legal tech companies aren’t the only ones recognizing the importance of AI for lawyers. Earlier this week, Anthropic announced a continuation of new legal-specific features, expanding Claude for Legal — the law-focused plugin whose beginning Earlier this year we sent legal tech stocks tumble.
Harvey and Legora rely on Claude as their base model, among others, which makes for an uncomfortable dynamic: a key supplier is now also a competitor.
For Newton, these are all signs of the vast potential of the forensic AI market. He has reason to be optimistic. The Clio, based in Canada, was rated at 5 billion dollars when it raised a $500 million Series G last November. The company provides law firms with time tracking, billing and payment tools. He 1 billion dollars The acquisition of data intelligence platform vLex last year now allows lawyers to use Clio’s AI for research as well.
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Marina Temkin is a venture capital and startups reporter at TechCrunch. Before joining TechCrunch, she wrote about venture capital for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned her CFA designation.
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