Norm AI Secures $48 Million for AI-Powered Regulatory Compliance Solutions

Norm Ai Raises $48 Million to Develop Regulatory AI Agents | PYMNTS.com

Regulatory artificial intelligence (AI) agent company Norm Ai said Tuesday (March 11) that it raised another $48 million in funding, bringing to $87 million the total funding it raised in the past 18 months. Norm Ai will use the new funding to accelerate the development of its AI-powered legal and compliance automation solutions, the company said in a Tuesday press release. The company's platform implements compliance checks into business activities across the enterprise, so it covers AI-generated content, internal communications, agreements and external corporate communications, according to the release. "We built Norm Ai to turn regulatory requirements, legal obligations and corporate policies into intelligent systems that can be embedded into business workflows, reducing what used to take days into minutes," Norm Ai Founder and CEO John Nay said in the release. Norm Ai also announced Tuesday that former Securities and Exchange Commission (SEC) Commissioner Troy Paredes joined the company as senior policy advisor and head of capital market strategy. Paredes was appointed as an SEC commissioner by President George W. Bush, served from 2008 to 2013, and was actively involved in the SEC's regulation and oversight of capital markets, according to the release. Philippe Laffont, founder of Coatue, one of the investors in the latest funding round, said in the release: "Norm's innovative approach to automating compliance reviews allows them to continue to define regulatory AI." Norm Ai emerged from stealth and announced an $11.1 million seed round in January 2024. The company then announced it raised $27 million in a Series A funding round in June 2024. For small businesses, AI transforms compliance from a burdensome requirement into a more manageable, strategic advantage, empowering them to meet regulatory standards without compromising on efficiency or cost in other areas, PYMNTS wrote in November. Abstract said in January that it raised $4.8 million in seed funding to accelerate the development of its AI-powered platform that helps businesses anticipate how proposed changes in government policy may affect them.

Norm Ai picks up investment

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Norm Ai is a legal & compliance automation platform that seeks to transform how enterprises handle legal, regulatory and industry requirements. The platform offers a "compliant by design" approach that integrates compliance checks into business activities, including AI-generated content, internal communications, agreements, and external corporate communications such as marketing content and sales materials. Rather than treating compliance separate from the business, Norm implements compliance checks proactively and delivers an end-to-end enterprise-wide solution. The Legal Engineering Automation Platform Norm's solution is built with their Legal Engineering Automation Platform (Leap), a proprietary system for creating AI Agents with legal and regulatory domain expertise. Leap empowers lawyers and ex-regulators at Norm Ai to convert complex policies into operational AI systems powered by Large Language Models. "We built Norm Ai to turn regulatory requirements, legal obligations, and corporate policies into intelligent systems that can be embedded into business workflows, reducing what used to take days into minutes," said John Nay, Founder and CEO of Norm Ai. "This strategic investment accelerates our research and development across legal and regulatory frameworks to meet demand for AI compliance solutions." "We are thrilled to invest in Norm Ai and John," said Philippe Laffont, Founder of Coatue. "Norm's innovative approach to automating compliance reviews allows them to continue to define regulatory AI. This investment reinforces our conviction in their vision and technology." Former SEC Commissioner Joins as Senior Policy Advisor and Head of Capital Markets Strategy Troy Paredes has joined as Senior Policy Advisor and Head of Capital Markets Strategy at Norm Ai to accelerate the company in setting the norms for regulatory and compliance AI. From 2008-2013, Mr. Paredes was a Commissioner of the U.S. Securities and Exchange Commission, having been appointed by President George W. Bush. At the SEC, Mr. Paredes was actively involved across the SEC's regulation and oversight of capital markets, and has been a strong proponent of leveraging technology in regulatory and compliance environments. Earlier in his career, Mr. Paredes was a scholar and professor of corporate and securities law. He holds a J.D. from Yale Law School.

AI agent-powered compliance automation startup Norm Ai raises $48M - SiliconANGLE

AI agent-powered compliance automation startup Norm Ai raises $48M Norm Ai Inc., a developer of artificial intelligence agents focused on regulatory compliance, said today it has closed on a $48 million Series B funding round that brings its total amount raised to $87 million. Today's round was led by Coatue and saw participation from a host of others, including Craft Ventures, Vanguard, Blackstone Innovations Investments, Bain Capital, NewYork Life Ventures, Citi Ventures, TIAA Ventures and Salesforce Inc. founder and Chief Executive Marc Benioff. The startup pitches itself as a "legal and compliance automation platform" and its mission is to change the way that businesses handle matters relating to the industry and legal regulations they're required to adhere to. It has created a "compliant by design" approach that aims to integrate compliance checks into various business activities and processes, such as AI-generated content, legal agreements, internal communications, external corporate communications, sales and marketing materials and so on. Norm Ai says it has created a proprietary programming language that represents corporate policies and government regulations in decision trees, so they can be understood by large language models developed using its agentic AI platform. It enables companies to design and create "Regulatory AI Agents" that can work side-by-side with compliance workers and help to automate compliance checks. According to the startup, its customers are required to conduct regular compliance reviews of their current and future business activities to ensure they adhere to federal, state and local regulations. They use its AI agents to check they're compliant with the terms of some extremely large and complex documents, such as the Social Security Act, which contains more than 15,600 words, the Affordable Care Act, at more than 371,800 words, and the Clean Air Act, which has over 213,000 words. Each time a business employee submits new documents to the company's system, Norm AI's agents will automatically scan it for compliance, providing clear, actionable explanations in the case where new content is a problem. The agents can make these compliance determinations within just seconds, and then go ahead and implement the recommendations they suggest if the worker OKs them. Norm Ai founder and Chief Executive John Nay said the idea behind his company is to turn regulatory requirements, legal obligations and corporate policies into intelligent systems that are embedded directly with business workflows. The company is operating in a growing industry for legal, risk and compliance technology, with the need for automation increasing as more organizations adopt AI tools and generate enormous volumes of data. Future Market Insights has forecast the market to grow from $10.9 billion in 2023 to as much as $21.9 billion by 2034.

Norm AI raises $48M for AI compliance agents

Regulatory AI company Norm AI has secured $48 million in funding, bringing its total raised over the last 18 months to $87 million. Investors in this round include Coatue, Craft Ventures, Vanguard, Blackstone Innovations Investments, Bain Capital, New York Life Ventures, Citi Ventures, TIAA Ventures, and Marc Benioff. Collectively, the investors represent over $15 trillion in assets. Norm AI's platform aims to automate legal and compliance tasks for enterprises. It uses a "compliant by design" approach, integrating compliance checks directly into business workflows. The company states the intention is to transform how companies handle legal, regulatory, and industry requirements. This includes applications like reviewing AI-generated content, internal communications, agreements, and external corporate communications. Norm's solution is built on its proprietary Legal Engineering Automation Platform (Leap). Leap allows legal experts and former regulators at Norm AI to convert complex policies into operational AI systems powered by Large Language Models (LLMs). The company emphasizes this is a system for making AI agents. In conjuction with the funding, former SEC Commissioner Troy Paredes has joined Norm AI as Senior Policy Advisor and Head of Capital Markets Strategy. Paredes, who served as SEC Commissioner from 2008-2013, brings experience in capital markets regulation and technology's role in compliance. The company claims that its goal is to convert regulations into AI.