On track to hit $100-million USD ARR, Spellbook partners with Canadian Bar Association

An exclusive partnership with the Canadian Bar Association (CBA) is the latest milestone for legal AI startup Spellbook, which says it’s on track to hit $100 million USD in annual recurring revenue in 2026.

Nearly 90 percent of legal department professionals are either using or moving toward using AI in their work.

The legal AI startup announced on Tuesday that it will serve as the exclusive provider of AI-powered contract drafting and review tools for the CBA under a two-year partnership. This means Spellbook’s suite of tools will be available at a discount for the CBA’s member base of more than 40,000 legal professionals across Canada.

“The fact that they selected Spellbook as the best tool shows our leadership position in the market,” Spellbook CEO and co-founder Scott Stevenson said in an interview with BetaKit. “It’s hugely validating.”

Spellbook was originally founded as Rally, in 2018 in St. John’s. The company’s self-described “AI co-pilot for lawyers” (or “Cursor for contracts”) helps legal practitioners review and draft contracts through a Microsoft Word integration. Later branded as Spellbook, Stevenson said it launched the first generative AI tool for lawyers before the public release of OpenAI’s ChatGPT in 2022.

According to a joint report from Spellbook and Counsewell released in June 2025, nearly 90 percent of legal department professionals are either using or moving toward using AI in their work. Ninety-seven percent of in-house counsel teams found using AI tools effective, the report said.

That demand has borne a competitive legaltech landscape. Legal research firms like Thomson Reuters are offering AI tools of their own, but some of these giants saw their share prices take a hit in early February when AI company Anthropic released a legal AI plug-in with impressive capabilities. The battle for market share is playing out in courtrooms, as well, including the high-profile legal battle between legal software giant Clio and Toronto-based Alexi over an alleged breach of contract related to legal data access.

With its focus on contracts, Stevenson claimed Spellbook has more than 4,000 customers across 80 countries—more than US-based AI legaltech giant Harvey and Stockholm-based Legora combined. While these two companies focus on selling to lawyers, Stevenson said, Spellbook’s offering is useful not only to lawyers but to procurement and sales teams, too.

“We focus on the entire workflow of getting a contract to signing,” Stevenson said.

The startup was valued at $350 million USD following its Series B raise in October, led by prominent Silicon Valley firm Khosla Ventures. Spellbook has raised more than $80 million USD from investors including Khosla, Montréal’s Inovia Capital, and the venture arm of Thomson Reuters.

Feature image courtesy Unsplash. Photo by Cytonn Photography.