Norm Ai raises $27M to help businesses handle regulatory compliance with AI agents – Business
Norm Ai Inc., the developer of an artificial intelligence powered regulatory compliance platform, announced Tuesday that it has raised $27 million in early-stage funding on its journey to expand its use of AI agents for regulatory assessments.
The company’s Series A funding round was led by Coatue, with participation from Bain Capital Ventures, Blackstone Innovations Investments, New York Life Ventures, Citi Ventures, TIAA Ventures and Jefferson River Capital. Over the past 11 months, Norm has raised more than $38 million in funding.
Regulations can be difficult to navigate in the best of times, creating complex issues for companies to traverse. The company says its team of AI and legal engineers has developed a proprietary language that represents government regulations and corporate policies in decision trees that can be understood by large language models.
The systems produced and powered by these LLMs, called Regulatory AI Agents, can work side by side with business management and compliance workers within enterprise workforces to help automate compliance analysis to make them more understandable, efficient and accurate.
“I‘ve been conducting research at the intersection of AI and law for more than a decade,” said John Nay, founder and chief executive of Norm Ai. “We are now at an inflection point in AI capabilities that, when properly harnessed, unlock massive improvements in regulatory compliance workflows across the economy.”
The company said its AI systems are purpose-built to tackle compliance issues. With so many companies dealing with deployments covering mission-critical workflows, it’s more important than ever that up-to-date information is used to double-check documents.
Norm’s customers regularly require compliance reviews of their current and future activities against federal, state and local regulations, to keep themselves in line with the law. That means having AI agents cover extremely large, complicated documents such as the Social Security Act, which contains more than 15,600 words, the Clean Air Act at more than 213,700 words, or the Affordable Care Act at more than 371,800 words.
Each time documents company are submitted to the system, AI agents automatically provide clear, actionable explanations for proactive compliance reviews. The company said its AI agents can make immediate compliance determinations across large numbers of documents and undertake multi-step tasks to provide actionable feedback about deep regulatory understanding.
The most important thing about the platform is that reviews happen in minutes rather than the days that might take for a human-led review. All information provided can also be sourced back to the original regulatory parameters and sources so human reviewers can take the insights back to the authoritative grounding.
The legal, risk and compliance solution market is a growing industry given the complex mire of issues that technology companies face employing big data and AI, especially when it comes to security. According to a report from Future Market Insights Inc., the market is presently $10.9 billion.
That’s on track to reach $21.9 billion by 2034, driven by the need for smarter systems to handle legal operations and mitigate risk. Technologies such as AI and machine learning that will augment human workers in the legal sector and other industries will most likely be at the forefront of demand.