Jack Newton, co-founder and CEO of Clio, believes legal tech will be the next major winner in the LLM era, and the company's financials seem to support that thesis. The 18-year-old Canadian company—which provides law firm management software—saw its revenue growth accelerate significantly after integrating AI into its platform in 2023. Clio crossed the $200 million annual recurring revenue threshold in mid-2024, doubled that figure by late last year, and has now announced reaching $500 million in ARR. Newton points to the parallel between legal work and coding: just as LLMs excel at programming because of the vast repository of existing code to train on, law firms maintain massive corpuses of contracts and agreements that provide rich text-based data for AI models to learn from.
Clio isn't alone in capitalizing on this trend. Four-year-old Harvey, which offers LLM AI tools for law firms, reached $190 million in ARR by the end of 2025, according to co-founder and CEO Winston Weinberg's LinkedIn post. Harvey's competitor Legora announced just last month that it hit $100 million in ARR—a milestone achieved a mere 18 months after launching its platform. The legal AI space is attracting serious attention, though it's worth noting that the industry's definition of ARR has faced recent scrutiny.
Anthropic's recent moves have added complexity to the competitive landscape. The AI company announced a suite of new legal-specific features this week, expanding Claude for Legal—the law-focused plugin whose debut earlier this year sent legal tech stocks tumbling. Both Harvey and Legora rely on Claude as a core model among others, creating an uncomfortable dynamic where a key supplier is now also positioning itself as a competitor. For Newton, though, this is simply evidence of the vast potential in the legal AI market. Clio was valued at $5 billion when it raised a $500 million Series G funding round last November.