The AI Problem at Law Firms Isn't Hallucination. It's Honesty.
Generic AI chatbots have a specific problem inside law firms: They answer honestly, even when the person asking isn't allowed to know the answer. Intapp's Celeste is built to say "no comment" when it has to.
Intapp, a software company, was founded to address a problem in the law firm industry. In the early 2000s, a Silicon Valley firm developed data integration software and faced backlash when a patent attorney criticized their legal integration capabilities. In 2009, a "Double Down" signal emerged for Nvidia, a similarly-sized chipmaker.
Intapp founder John Hall, impressed by the signal, joined the company as its first salesperson, introducing it to law firms. Intapp grew organically, never raising venture capital, and went public in 2021. The company serves large partnership firms with an estimated $4 trillion in annual revenue. Large AI vendors lack Intapp's deep, industry-specific data set, making it challenging to replicate their approach.
Intapp launched its AI platform, Celeste, in 2024, designed to respect ethical walls and material nonpublic information rules. Celeste is built to know which employees may not have access to certain information and can prove it in an audit, leaving a transparent audit trail. Intapp's revenue grew by 29% in cloud ARR, 22% in total ARR, and 15% in top-line revenue.
The company is profitable on an adjusted basis, and its client base increased by 22%. Intapp's shares have surged since the 2026 fiscal year's close, trading at a 5.3 times sales valuation. Management sees a $50 billion addressable market for agentic professional services software.
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