Alexi calls legal AI a "war" - and says it's winning
Toronto-based Alexi is approaching a revenue milestone after what CEO Mark Doble calls a 3,000-percent year-over-year boost in users. The company now serves more than 600 mid-market to enterprise firms, including Ontario's Oatley Vigmond and Vancouver's MacLean Law.
"Our positioning is [that] it is war and we are going to win. None of this 'rising tide lifts all boats.'" - Mark Doble, Alexi
Competitive pressure is intensifying
Firms are adopting AI at speed, and incumbents are not sitting still. Thomson Reuters and LexisNexis have shipped their own AI offerings, such as Lexis+ AI. On the startup side, Toronto's Spellbook raised $50 million USD this month, and Clio closed Canada's largest-ever software round last year.
A three-company race for workflow automation
Doble frames enterprise workflow automation as a contest among Alexi, San Francisco-based Harvey, and European firm Legora. Harvey was most recently valued at $5 billion USD and plans to expand its Toronto footprint. Legora raised an $80-million USD Series B at a $675-million USD valuation and reports 400+ customers.
Product focus: research, arguments, and automated workflows
Alexi sells AI software to help lawyers produce research memos, surface relevant issues and arguments, and automate routine tasks. The company has leaned into custom workflow creation and now offers a library of agentic workflows that firms can adopt and tailor.
Adoption is still gated by risk concerns. A 2024 survey of Canadian legal professionals by Appara found that data privacy, security, and tool accuracy are top barriers. Twenty-six percent flagged risks and ethics, while 23 percent lacked trust in how data is used.
Security wedge: private cloud, single-tenant
Alexi's pitch centers on a new private cloud option using a single-tenant architecture. Each client runs a dedicated instance, reducing cross-customer data exposure and limiting blast radius from misconfigurations or vendor-side changes.
In Canada, where "sovereign" cloud is under discussion, single-tenant deployments also let firms capture the benefit of their own security and infrastructure investments. Doble argues this model pushes firms to invest in their own AI stack rather than rely on shared environments.
Traction, expansion, and hiring
Alexi says it is on track to reach $10 million in annual run rate by year-end, with revenue split between Canada and the United States, slightly favoring the U.S. The company plans to open a New York City office next year while keeping its headquarters in Canada.
To support growth, Alexi has raised nearly $25 million CAD to date, including $4.5 million in venture debt in February. Hiring won't slow: the team of 50 is expected to double by January 2026 across product, engineering, and sales.
What this means for law firm leaders
- Vendor diligence: Ask for accuracy metrics, source transparency, and jurisdictional coverage. Confirm whether client data is used for model training. Require clear retention periods and audit logs.
- Security model: Clarify single-tenant vs. multi-tenant hosting, data residency options, and certifications (SOC 2 Type II, ISO 27001). Validate SSO, role-based access, data loss prevention, and encryption at rest/in transit.
- Workflow selection: Prioritize high-volume, rule-bound tasks: first-pass research, memo drafting, issue spotting, document summaries, and standard motion templates. Integrate with your DMS and matter management systems.
- Human-in-the-loop: Establish review protocols, model prompts, and redline standards. Require citations with pinpoints and run adversarial checks for hallucinations on sensitive matters.
- Risk and ethics: Update engagement letters and client consent language for AI use. Define privilege handling, confidentiality boundaries, and incident response for AI-related errors.
- ROI tracking: Start with a 60-90 day pilot. Measure hours saved per matter, cycle-time reduction, and quality scores from supervising attorneys. Tie renewals to measurable outcomes, not hype.
- Change management: Create an AI working group (IT, Risk, KM, Practice Leads). Standardize prompts and templates. Offer targeted training and certify "power users" inside each practice group.
Bottom line
The legal AI market is consolidating around a few serious contenders. Alexi is betting that single-tenant security, customizable workflows, and enterprise focus will win large-firm budgets. Whether you buy from Alexi, an incumbent, or another startup, the advantage goes to firms that move early, pilot rigorously, and scale what works.
If your team needs structured upskilling on AI tools, workflows, and governance, see these AI courses by job role.
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