Luminance is the latest startup to join the growing list of companies attracting millions of dollars in investments amid the artificial intelligence frenzy. The legal technology company is fresh from raising $40 million in fresh funding from a Series B funding led by venture fund March Capital, National Grid Partners, and law firm Slaughter.
Luminance AI Innovation
Founded in 2015, Luminance has attracted intense interest in developing machine learning models that help lawyers automate contract reviews. Its AI model is also being used to shorten the time it takes to sign contracts. The fact that the company was founded by a combination of lawyers, mathematicians, and experts in mergers and acquisitions explains the strong interest it continues to receive amid the AI frenzy.
The company’s machine learning model for lawyers continues to attract strong use, as evidenced by the fivefold jump in the company’s annual recurring revenue. Last year, the company launched an artificial intelligence tool that autonomously enables contract negotiation without human involvement.
Autopilot is the contract negotiation tool that Luminance is banking on to strengthen its credibility on AI innovation. The tool can handle day-to-day contract negotiations while also hastening tedious manual work that entails the review of non-disclosure agreements.
Some of the company’s biggest clients include Kotch Industries, Hitachi, Yokogawa, Liberty Manual and BBC studios. The clients are increasingly investing in its technology as they look to strengthen their competitive edge and reduce operating costs.
Luminance is not the only company generating a buzz amid the artificial intelligence frenzy. Investors are increasingly looking for ways to gain exposure to the nascent technology that has taken many sectors, from tech to healthcare, energy, and financials, by storm. Microsoft is one of the companies that have been at the forefront in ramping up investments in startups working on breakthrough AI innovation.
Growing AI Investments
The software giant has invested nearly $13 billion in OpenAI, the parent company behind the popular chatbot ChatGPT. With the investment, the company has integrated ChatGPT into its search engine, Bing, as it looks to enhance user experience while strengthening its competitive edge against fierce rival Google.
Anthropic, Cohere, and Mistral are the other emerging startups that have succeeded in attracting millions in funding according to their valuation in upwards of billions of dollars. For instance, Anthropic has already attracted a $2.75 billion investment from Amazon. Last year alone, the companies and investors put close to $30 billion in 700 generative AI deals.
The growing investments come as the tech giants look to cement their prospects amid the AI ecosystem. Investments towards AI machine learning and robotic automation are expected to hit record highs of $232 billion by 2025 as companies and individuals eye a piece of the ascent technology. While AI investments only account for about $12.4 billion of global investment, the figure is expected to skyrocket by over 40% over the next three years as executives increase their AI investments.
Nevertheless, the US Federal Trade Commission has already raised concerns about the concentration of AI power among tech giants. The concentration according to the agency possesses significant dangers on competition and innovation.
