While AI is now applied to everything from healthcare to customer support, no single use case has 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 be the next big winner in the age of LLMs. That’s a self-serving claim – 18-year-old Clio is a legal tech company – but the numbers are hard to ignore.
Clio saw its revenue growth accelerate sharply after integrating AI into its offering in 2023. The company surpassed $200 million in annual recurring revenue (ARR) in mid-2024, doubled that number late last year, and just announced that its ARR reached $500 million.
“LLMs are so great for coding because all the existing code in the world is a huge repository for education,” Newton said. “The analogy with law is really clear.”
Law firms hold vast volumes of contracts and agreements, providing a rich text-based database for AI models to learn from.
“Technology companies and lawyers are recognizing the huge advantage there is for legal majors with LLMs,” Newton said.
Clio isn’t the only legal tech company seeing a huge revenue boost from AI.
Four-year-old Harvey, which offers LLM AI for law firms, has hit $190 million in ARR by the end of 2025, co-founder and CEO Winston Weinberg shared on LinkedIn. Harvey’s main rival, Legora, announced last month that he had arrived $100 million in ARR just 18 months after launching its platform.
Although The legal tech community’s definition of ARR was under control recentlythe opportunity to apply artificial intelligence to legislation is clearly logical, since LLMs can automate the most time-consuming tasks in the field, such as reviewing and writing papers.
Legal tech companies aren’t the only ones recognizing how valuable AI could be to lawyers. Earlier this week, Anthropic announced a slew of new legal features, expanding Claude for Legal — its law-focused plugin whose debut earlier this year it shipped legal tech stocks falling down.
Both Harvey and Legora rely on Claude as a role model among others, which makes the dynamic uncomfortable: A key supplier is now also a competitor.
For Newton, these are all signs of the enormous potential of the legal AI market. He has reason to be optimistic. The Canadian-based Clio was valued 5 billion dollars when it raised a $500 million Series G last November. The company provides law firms with time tracking, invoicing and payment tools. Its $1 billion acquisition of data intelligence platform vLex last year now allows lawyers to use Clio’s AI for research, too.
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