Clio’s $500M win comes as Anthropic steps up

While AI is being used in everything from healthcare to customer service, no single task has been as popular or profitable as coding.

Jack Newton, co-founder and CEO of Clio, a Canadian legal management company, is convinced that the legal profession is about to become a big winner in the era of LLMs. This is voluntary – the 18-year-old Clio is a law firm – but the numbers are hard to deny.

Clio saw its revenue growth increase significantly after integrating AI into its own delivered in 2023. The company is expected to surpass $200 million in annual revenue (ARR) by 2024, double the figure at the end of last year, and just announced that its ARR reached $500 million.

“LLMs are great for coding because all the coding in the world is a learning environment,” Newton said. “Legal equality makes sense.”

Law firms have large groups of contracts and agreements, which provide a rich background for AI models to learn from.

“Technology companies and lawyers are realizing that there is a huge demand for LLMs,” Newton said.

Clio isn’t the only law firm seeing an increase in AI-driven investment.

Four-year-old Harvey, which offers LLM AI to law firms, has hit an ARR of $190 million by the end of 2025, co-founder and CEO Winston Weinberg shared. and LinkedIn. Harvey’s main rival, Legora, announced last month that it had arrived $100 million in ARR 18 months after launching his platform.

Although The legal meaning of the ARR group has been in a recent analysisthe potential for using AI in law enforcement is clear, considering that LLMs are able to automate tasks that are more time-consuming, such as reviewing manuscripts and writing.

Legal technology companies aren’t the only ones realizing the importance of AI for lawyers. Earlier this week, Anthropic announced a new suite related to legal matters, expanding Claude for Legal – a legal-oriented plugin that first appearance earlier this year they sent legal stock to fall.

Both Harvey and Legora rely on Claude as a central role model among others, which makes things uncomfortable: the main supporter is now a competitor.

For Newton, these are all signs of the huge potential of the legal AI market. He has reason to be optimistic. The Canadian Clio was a bargain $5 billion when it raised a $500 million Series G last November. The company provides law firms with time tracking, invoicing, and payment tools. They $1 billion The acquisition of data intelligence platform vLex last year now allows lawyers to use Clio’s AI for research, as well.