""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."
"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."
""Tech companies and lawyers alike are recognizing what a huge amount of upside there is for legal with LLMs," Newton said. Although the legal tech community's definition of ARR has been under scrutiny recently, the opportunity to apply AI to law makes clear sense, given that LLMs can automate the field's most time-consuming tasks, such as document review and drafting."
"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 Harvey's main rival, Legora, announced last month that it reached on LinkedIn. $100 million in ARR a mere 18 months after launching its platform."
AI is being applied across industries, but code writing remains the most popular use case. Legal tech is emerging as a leading opportunity in the LLM era, with Clio reporting rapid revenue acceleration after adding AI in 2023. Clio surpassed $200 million in annual recurring revenue in mid-2024, doubled it by late last year, and reached $500 million. The rationale is that LLMs excel at coding because existing code forms a large training repository, and legal documents provide an analogous repository of contracts and agreements. Other legal AI providers show similar growth, including Harvey and Legora. LLMs can automate time-consuming tasks like document review and drafting, and major AI vendors are adding legal-specific features.
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