New York-based Norm Ai has raised $27 million in a series A funding round to enhance its platform, which transforms regulations into AI-powered compliance agents. Founded in 2023, Norm Ai's platform converts regulations and corporate policies into computer code, enabling AI agents to assist compliance teams in monitoring products and services.
Leading the funding round was private equity firm Coatue, which also led Norm Ai’s $11.1 million seed round in January. Other investors include Citi Ventures, Capital Ventures, New York Life Ventures, TIAA Ventures, and Jefferson River Capital, the family office of former Blackstone president Tony James.
The funds will be used to expand Norm Ai's platform, grow its client base, and hire new software engineers and sales staff. John Nay, Norm Ai’s founder and CEO, expressed excitement about the investment, stating, "We are now at an inflection point in AI capabilities that, when properly harnessed, unlock massive improvements in regulatory compliance workflows across the economy."
Norm Ai's platform creates "Regulatory AI Agents" that automate compliance checks for businesses by using large language models to identify potential regulatory issues in products or contracts. These AI agents are knowledgeable in various regulations, including the Clean Air Act, the Affordable Care Act, and the Investment Advisers Act, and can quickly scan and highlight potential issues.
Additionally, Norm Ai's agents can work alongside other business automation systems to ensure compliance with corporate and regulatory policies. For instance, the platform can help insurance companies and asset managers expedite the publication of content subject to strict regulations.
According to the company, "By producing actionable feedback across all regulatory parameters, Norm Ai enables in-the-weeds compliance users to evaluate and finalize content against regulatory requirements in minutes, not days."
Sri Viswanath, a general partner at Coatue who will join Norm Ai's board, praised the company's vision: "Coatue continues to be impressed by Norm's vision to deliver a comprehensive regulatory AI platform. We are thrilled to double down on Norm as they seek to grow into a transformational AI company, and I look forward to supporting John and his team on their next steps."
