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 single use case has yet been nearly as popular or lucrative as code writing. Jack Newton, co-founder and CEO of Clio, a Canadian law firm management software company, is convinced that legal tech is poised to be the next big winner of the LLMs era. That’s a self-interested claim — 18-year-old Clio is a legal tech company — but the numbers are hard to dismiss. 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 figure by late last year, and just announced that its ARR reached $500 million. “LLMs are so excellent for coding because all the existing code in the world is a huge repository to train on,” Newton said. “The analogy to legal is really clear.” Law firms hold massive corpuses of contracts and agreements, providing a rich basis of text-based data for AI models to learn from. “Tech companies and lawyers alike are recognizing what a huge amount of upside there is for legal with LLMs,” Newton said. Clio isn’t the only legal tech company seeing a massive revenue surge driven by AI. Four-year-old Harvey, which offers LLM AI for law firms, hit ARR of $190 million by the end of 2025, co-founder and CEO Winston Weinberg shared on LinkedIn . …