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.