Insider Brief
- Norm Ai, a company focusing on automating regulatory compliance, raised $11.1 million in a seed round led by Coatue.
- The round included participation from various venture firms and AI researchers, including the founding CEO of the Allen Institute for AI.
- Norm Ai’s platform addresses the challenge of growing regulatory complexity and volume, converting regulations into AI agents capable of making autonomous compliance determinations.
PRESS RELEASE — New York City/January 23, 2024 — On a mission to automate regulatory compliance, Norm Ai has built the first Regulatory AI Agent platform and is now serving Chief Compliance Officers at companies spanning from the Fortune 100 to small businesses. Norm Ai raised an $11.1 million seed round, led by Coatue, with participation from Haystack Ventures, M13 Ventures, Basis Set Ventures, Expa Ventures, Atypical Ventures, and AI researchers such as the founding CEO of the Allen Institute for AI.
Over the last 50 years, the U.S. Code of Federal Regulations has more than doubled in its number of restrictive words, from 400,000 to over 1,000,000, as our economy has become more complex. Compliance has become extremely costly. Even the most earnest and well-resourced organizations struggle to comply with the routine thousand-page regulation. Norm Ai is solving this regulatory “sludge” problem by converting regulations into AI agents that can make autonomous compliance determinations. This enables compliance teams to delegate tasks to Regulatory AI via high-level instructions, while at the same time validating the resulting work product at any level of granularity.
The team of AI engineers and lawyers is headquartered in New York City. With publications in journals such as Science, founder John Nay brings more than a decade of research experience at the intersection of AI and law, most recently at Stanford. Nay was also the founding CEO of Brooklyn Investment Group, an AI-powered investment software platform and SEC Registered Investment Adviser subsidiary, where he now serves as Chairman.
“It has become almost humanly impossible for compliance teams to keep up with regulations in a time-sensitive and cost-effective way,” explains Norm Ai CEO John Nay. “Norm Ai agents serve as a round of context-aware compliance checks that pinpoint what may be problematic with what regulation, enabling compliance teams to quickly understand the legal basis for a determination. Businesses can move faster, do more, and be more compliant, all at the same time.”
Sri Viswanath, General Partner at Coatue and former CTO of Atlassian, added, “we believe regulatory compliance is an ideal field to deploy AI agents that can significantly improve processes and productivity. We are excited to back Norm Ai’s pioneering approach that converts regulations into computer code, powered by large language models. The team brings a unique blend of generative AI, legal, and software engineering expertise with potential to revolutionize compliance as we know it.”
Norm Ai regularly convenes industry experts to push the frontier of Regulatory AI. The company established a Regulatory Advisory Board, with founding members including Susan Dudley (former Head of the White House Office of Information and Regulatory Affairs), Troy Paredes (former SEC Commissioner), Kate Karas (former General Counsel of Chime), and Vanessa De Simone (Chief Compliance Officer of Coatue Management, former SEC Enforcement). And on February 6, Norm Ai is hosting an event at the New York Stock Exchange on AI Agents & Law, with speakers including Lawrence H. Summers (Harvard Professor and OpenAI Board member), Matthew J. Platkin (Attorney General of New Jersey), and Anna Makanju (Head of Policy at OpenAI and former policy adviser to Vice President Joe Biden).
