A startup providing artificial intelligence (AI) solutions recently came out of stealth mode, aiming to make regulatory tasks simpler for corporate compliance chiefs. The company in question, Norm AI, was founded by renowned computer science expert John Nay, who has long been educating law students about generative artificial intelligence.
Norm AI, headquartered in New York, successfully raised $11.1 million in a seed funding round spearheaded by investment organization Coatue Management LLC.
The firm’s emphasis, according to Nay, is on “public law and regulation, rather than private law and contracts.” He explains that, to incorporate societal values within AI systems and govern them effectively, leveraging public law is essential.
Norm AI ranks among the ever-growing number of startups capitalizing on AI’s potential relative to legal operations. The company asserts that it developed the first AI platform for regulatory compliance, capable of automating certain tasks for chief compliance officers at a diverse range of client companies.
The firm now claims it can automate “mundane aspects of corporate compliance in high-stakes situations,” potentially assisting in-house legal teams and compliance heads. This help may be particularly beneficial at smaller businesses, where compliance and legal duties often fall to the same individual.
As Norm AI points out, the US federal regulatory code’s number of limiting terms has more than doubled within the last five decades. Thus, compliance becomes an increasingly cumbersome and costly corporate function. Nay has significant experience in this area, having spent over a decade teaching law classes at NYU, Stanford, and Vanderbilt.
The team at Norm AI, which includes lawyers and AI engineers, is currently focusing on the financial services sector due to the high demand from these heavily regulated clients. For further details on this emerging AI firm, you can check the original story on Bloomberg Law.