Key Investors in the Business
Investors in the AI startup business include Information Venture Partners, Illuminate Financial Management, Golden Ventures, and StandUp Ventures.
Information Venture Partners, based in Toronto, invests in fintech and enterprise software as service companies. The investor's portfolio includes Coconut Software, LendingFront (a small business lending startup company), and Procurify. According to BetaKit, Deloitte is no longer a shareholder in the startup company.
“Current practices for drafting, negotiating, and managing contracts are massively inefficient. Arteria approaches the digital contract problem differently. The approach harnesses data to generate better information at scale, driving significant gains in speed and efficiency to clients,” said Robert Antoniades, general partner at Information Venture Partners, in a press release.
AI to Process Contracts
The startup business is currently focused on using AI technology to analyze contracts, while its product has the capability to draft contracts using templates (i.e., Arteria Draft). Arteria also helps business users negotiate contracts. As far as its pricing structure, the business has not disclosed any information.
Financial institutions represent the first target market for the startup. The Atlantic estimated that banks spend billions on legal costs, mainly related to litigation, as of 2014.
Growing Demand for AI in the Legal Industry
Arteria AI is not alone in choosing to apply AI technology to contracts. Absolute Markets Insights estimates that the global legal tech AI market was worth more than $3.2 billion in 2018.
Several other startup founders are working at bringing AI to contracts. Last year, ThoughtRiver raised $10 million in Series A funding to apply AI technology to reviewing contracts. Kira Systems, a contract analysis startup company, based in Toronto, also uses artificial intelligence. BlackBoiler, founded with a $225,000 grant from the National Science Foundation, uses AI to review contracts. Daniel Broderick estimated that BlackBoiler could automate $7 billion of the $35 billion spent annually on lawyers to review contracts.
Deloitte’s Role in the Technology Industry
With over $47 billion in global revenue, Deloitte is one of the largest professional services firms in the world. The company is actively expanding beyond its foundation in professional services. In 2018, Deloitte acquired ATADATA, a cloud management startup via the Deloitte Digital subsidiary. In 2018, Deloitte acquired KnowledgeSpace, an Australian speech analytics business. KnowledgeSpace can be used to detect patterns in customer comments and compliance records.
Deloitte also makes indirect contributions to the startup industry. According to Crunchbase data, there are more than five hundred companies founded by Deloitte alumni worldwide. Arteria AI co-founder Shelby Austin first joined Deloitte in 2014 and eventually became head of Deloitte’s artificial intelligence consulting practice. Before joining Deloitte, Austin was a partner in Davies Ward Phillips & Vineberg, LLP and worked at ATD Legal Services Professional Corporation.
About the Author
Bruce Harpham is an author and marketing consultant based in Canada. His first book, "Project Managers At Work," shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.