Legal AI startup Paxton AI lands $6 million in seed funding to become AI legal assistant for lawyers
In 2022, we featured a story about ZERØ, a California-based legal AI startup that streamlines labor-intensive tasks for lawyers. This innovative company was founded, in part, due to the work of one co-founder in the realm of cancer image detection using MRI machines.
Fast forward more than a year later, the legal AI landscape has evolved and a new player has entered the scene with a mission to revolutionize the legal industry by serving as a valuable assistant for legal research.
Enter Paxton AI, a legal tech startup harnessing the power of generative AI, similar to ChatGPT, to simplify the intricacies of legal research and document drafting. This innovative approach empowers legal teams to boost their efficiency, ensure greater accuracy, and reduce the time spent on these tasks.
Today, Paxton AI announced it has successfully closed $6 million in seed funding. Paxton will use the fresh capital injection to further its mission of streamlining legal research and drafting processes, enabling legal professionals to achieve more with heightened precision and efficiency.
The funding round was led by WVV Capital, with additional contributions from Kyber Knight and 25Madison. Distinguished figures such as former Citigroup chairman Richard Parsons and former Goldman Sachs international compliance head Robert Mass also backed Paxton AI in this endeavor.
Founded this year by Michael Ulin and Tanguy Chau, Paxton AI has quickly become a formidable presence in the legal tech arena. They utilize generative AI technology, similar to ChatGPT, to provide lawyers with comprehensive regulatory insights of the utmost precision. The company claims that it saves customers an average of 20 hours per week and increases users reporting work quality improves by over 90 percent.
Paxton AI’s service finds applications in various legal tasks, including research, document drafting, and policy creation. Notably, their product provides citations for all generated content, remains continually updated with federal and state laws in the United States, and offers flexible deployment options, including behind a company firewall with tailored data isolation features.
The emergence of ChatGPT, a chatbot developed by Microsoft-backed OpenAI, ignited a competitive race within the tech industry to grant consumers access to AI-powered solutions. ChatGPT leverages generative AI to craft fresh content, facilitating users in everyday tasks such as editing and coding.
This surge in generative AI’s popularity has given rise to a wave of enterprise startups like Paxton AI, each offering specialized products akin to ChatGPT to cater to diverse needs, from financial applications to legal research.