Spellbook CEO Scott Stevenson exposes inflated ARR practices among AI startups
Scott Stevenson, CEO of Spellbook, has highlighted the issue of inflated annual recurring revenue (ARR) practices among AI startups. He claims that some companies report revenue figures significantly higher than their actual collections, with investors being aware of this discrepancy. Spellbook, in contrast, emphasizes transparency by only reporting revenue from active, invoiced contracts.
- ▪Scott Stevenson exposed that some AI startups inflate their ARR figures by 3-5 times.
- ▪Investors are reportedly aware of the inflated revenue numbers being reported.
- ▪Spellbook only reports its 'Live Annual Run Rate' based on actual revenue from invoiced contracts.
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Spellbook CEO Scott Stevenson exposes inflated ARR practices among AI startups The legal AI company's co-founder says some startups report revenue figures 3-5x higher than what they actually collect, and their investors know it. Share Add us on Google by Editorial Team May. 22, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); There’s a quiet little trick happening across the enterprise AI landscape.
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