Norm Ai, an artificial intelligence (AI)-driven regulatory compliance firm, has secured $27m in a Series A funding round led by American investment management company Coatue.
The funding round also had participation from Bain Capital Ventures, New York Life Ventures, Blackstone Innovations Investments, TIAA Ventures, Citi Ventures, and Jefferson River Capital.
It also saw participation from the family office of former Blackstone president and chief operating officer Tony James.
Coatue general partner Sri Viswanath said: “Coatue continues to be impressed by Norm’s vision to deliver a comprehensive regulatory AI platform and we are excited by the array of compliance workflows they are already able to support.”
Norm Ai said that it has raised more than $38m in funding from leading firms over the past 11 months.
The US-based firm has developed an AI platform for converting regulations into computer code. It emerged from stealth earlier this year with $11.1m through a seed round.
Norm Ai’s team of AI and legal engineers built a proprietary language to represent government regulations and corporate policies as decision trees. These trees are then transformed into executable computer programmes by using large language models.
Dubbed Regulatory AI agents, the programmes automate compliance analyses to make them more efficient, comprehensive, and precise.
Norm Ai helps business users to self-serve initial rounds of regulatory compliance reviews by automatically providing clear, actionable explanations for proactive compliance findings.
Besides, the company empowers in-the-weeds compliance users to evaluate and finalise content against regulatory requirements in short time by generating actionable feedback across all regulatory parameters.
Norm Ai intends to continue to expand its platform and grow its client base with the new capital.
Norm Ai founder and CEO John Nay said: “I’ve been conducting research at the intersection of AI and law for more than a decade.
“We are now at an inflection point in AI capabilities that, when properly harnessed, unlock massive improvements in regulatory compliance workflows across the economy. To have the Series A backing of such notable institutions is a testament to Norm Ai’s leadership in Regulatory AI.”
