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.

In September, Sedric AI said it raised $18.5 million in a Series A funding round to continue developing and promoting its AI-powered compliance platform for financial institutions.