A homegrown tech company is proving, beyond a reasonable doubt, that AI can do a lot more in the courtroom than make up legal cases.
What happened: Legal software firm Clio raised US$500 million in new funding at a $5 billion valuation, making the Burnaby, B.C., company one of Canada’s most valuable tech firms. The cash injection will help the company fund its global expansion.
- The deal doubles the company’s valuation from last July, when it raised $900 million in one of the largest private investments ever in Canada’s tech sector.
- The firm also announced the $1 billion acquisition of vLex, a Barcelona-founded company that will give Clio access to more European and Latin American markets.
Why it matters: Clio has climbed its way to the top of a ~$32 billion legal tech market that is set to explode in the coming years. With its two major international acquisitions, the company has now doubled its potential market twice in less than a year.
- Most law firms have piloted AI tools, but the industry is expected to soon consolidate to a few core products. Clio appears to be a top choice — one expert wrote that it’s hard to doubt Clio’s ability to deliver an “everything app for lawyers.”
Big picture: The legal industry is one where AI promises to make a big difference. A Goldman Sachs study estimated that 44% of all legal work could eventually be replaced by AI.—LA