Clio’s $500M milestone arrives just as Anthropic ups the ante

While AI is now being applied to everything from healthcare to customer support, no use case yet has been as popular or lucrative as writing code.

Jack Newton, co-founder and CEO of Clio, a Canadian law firm management software company, believes legal technology is poised to be the next big winner of the LLM era. That’s a self-serving claim – 18-year-old Clio is a legal technology company – but the numbers are hard to deny.

Clio saw its revenue growth sharply accelerate after integrating AI into its offering in 2023. The company surpassed $200 million in annual recurring revenue (ARR) in mid-2024, doubled that figure 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 to train on,” Newton said. “The analogy with the legal is very clear.”

Law firms have vast amounts of contracts and agreements, which provide a rich base of text-based data for AI models to learn from.

“Tech companies and lawyers alike recognize what a tremendous advantage there is for legal with LLMs,” Newton said.

Clio isn’t the only legal tech company seeing a huge increase in revenue thanks to AI.

Four-year-old Harvey, which offers LLM AI for law firms, reached $190 million in ARR by the end of 2025, co-founder and CEO Winston Weinberg said on LinkedIn. Harvey’s main rival, Legora, announced last month that he had reached the limit $100 million in ARR just 18 months after launching its platform.

Although the definition of ARR by the legal technology community has been recently examinedthe possibility of applying AI to law clearly makes sense, as LLMs can automate the most time-consuming tasks in the field, such as reviewing and drafting documents.

Legal tech companies aren’t the only ones recognizing how valuable AI can be for lawyers. Earlier this week, Anthropic announced a series of new legal-specific features, expanding Claude for Legal – the law-focused plugin whose debut steered legal tech stocks earlier this year tumble.

Both Harvey and Legora rely on Claude, among others, as a core model, which makes the dynamic awkward: 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. Canada-based Clio was valued at $5 billion when it raised a $500 million Series G last November. The company provides law firms with tools for time tracking, billing and payment. Thanks to last year’s $1 billion acquisition of data intelligence platform vLex, lawyers can now also use Clio’s AI for research.