Our Partnership with Norm Ai
Today we are thrilled to announce our continued deep partnership with Norm Ai through leading this latest investment! This marks Norm’s third funding event, and the third we at Coatue have led.
When we met John Nay months before he founded Norm, he had a beautifully simple insight. With Generative AI, the cost of producing content is dramatically decreasing, but the cost of ensuring compliance of content is still high and unchanging. Huge portions of the US economy are in regulated industries, and if they can’t take full advantage of GenAI because they can’t ensure compliance, that would lead to significant lag in productivity in some of our most critical sectors.
Now with the rise of agentic functionality, AI is not only creating content at unprecedented scale and personalization, but also may increasingly make decisions. With GenAI, not only the cost of content generation is dramatically coming down, but the cost of performing economic activity is being dramatically reduced. This opens another massive compliance can of worms - how can you be sure that an AI agent won’t make a decision that could lead to significant regulatory scrutiny/fines?
Norm is designed to close that gap to enable regulated businesses to gain the advantages of GenAI, with their government-grade regulatory AI product. With Norm, large financial institutions, or healthcare firms, and other regulated companies can now use AI in their marketing or customer support or other business activities, while also checking the compliance of those activities against all the regulations/policies that are required.
Norm’s mission is to enable companies to do more, while aiming to maintain strong compliance scrutiny. Norm helps reduce days-to-weeks long friction of business users interfacing with compliance teams or lawyers to get approval, and enables them to make decisions, create content, and do their jobs faster. In fact, this very post was checked for potential compliance issues by the Norm Ai regulatory agents associated with the relevant rules.
Since we first invested in Norm Ai around the time the company was started in the summer of 2023, Norm has demonstrated exceptional growth and execution:
Customers include Fortune 500 companies and major financial institutions with >$15T in AUM
Established deep credibility through appointing a former SEC Commissioner, Troy Paredes, as Senior Policy Advisor and Head of Capital Markets Strategy
Created a regulatory advisory board including senior ex-regulators and in-house Chief Compliance Officers/Counsels across sectors
Assembled an exceptional team of engineers and legal/regulatory domain experts
Established itself as a leader in AI compliance solutions
Raised >$85M to support their mission and team, with Coatue’s investments being joined by Craft Ventures, Vanguard, Blackstone, Bain Capital, New York Life, Citi, TIAA, and others
“We are thrilled to invest in Norm Ai and John. 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.” - Philippe Laffont, Founder of Coatue
We're excited to continue supporting John and the entire Norm team as they scale their platform and expand supporting compliance teams and regulators across the economy.
Read more about Norm Ai’s latest news here.
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