Generative AI startup Parrot raises $11M in Series A funding to grow its AI-powered transcription platform

Numerous reports show that an estimated 30% of knowledge workers’ valuable time is wasted on administrative tasks. With the popularity of artificial intelligence (AI) on the rise, particularly generative AI, businesses of all sizes are actively exploring innovative solutions to minimize inefficiencies and boost productivity. That’s why one technology startup has taken up the challenge of addressing a crucial issue facing the legal industry: document transcription.

Enter Parrot, a New York-based tech startup and AI-powered transcription platform that leverages advanced language models specifically trained in legal and insurance terminology to generate highly accurate transcripts and detailed summaries shortly after a deposition takes place. Using AI, Parrot aims to streamline the transcription process and provide legal professionals with timely and comprehensive documentation of their proceedings.

Today, Parrot announced it has raised $11 million in Series A funding to expand go-to-market, accelerate product development and deepen its investment in artificial intelligence. The round, which was led by Amplify Partners and XYZ Venture Capital, brings the total company’s total funding to $14 million. Parrot is led by Aaron O’Brien, a technology veteran with past roles at Flexport, Uber, and Facebook.

Parrot revolutionizes the deposition process for legal professionals by offering a significant departure from the current norms. By harnessing their proprietary large language models (LLMs), which are extensively trained in legal and insurance jargon, Parrot has the ability to provide highly precise transcripts right after deposition, in stark contrast to the traditional turnaround time of days or even weeks.

This streamlined approach not only saves valuable time but also tackles the ongoing challenge of the court reporter shortage, as the demand for court reporting services continues to rise steadily. Furthermore, Parrot ensures that its platform adheres to all legal compliance requirements, offering a reliable and efficient solution for the legal industry.

“The improvements in LLMs are the next paradigm shift, akin to the internet and mobile. Parrot’s transformative technology will streamline and improve the litigation market and shape the future of the legal industry,” said Mike Dauber, General Partner at Amplify Partners.

Just a few years after its launch, Parrot is now being used by leading firms, insurance carriers, and Fortune 500 corporations

“We see an incredible opportunity to bring value through innovation to the legal and insurance industries, which remain underserved by technology providers,” said Aaron O’Brien, CEO of Parrot. “By leveraging artificial intelligence, and software more broadly, we’re helping our customers accomplish more for their clients and driving important efficiencies for our justice system.”

Moreover, Parrot introduces a new product called Auto-Summaries, which enhances the value for its customers by facilitating effective management toward favorable legal outcomes. Alongside the synchronized word-for-word transcript and recordings, Parrot’s advanced technology analyzes each deposition and generates a comprehensive summary within seconds. This feature allows legal professionals to quickly grasp the key points and essential details of the deposition, enabling them to navigate the legal process more efficiently and make informed decisions.

“Almost overnight, Parrot has become an indispensable part of our national deposition and case handling process,” said Michael B. Stevens, a Managing Partner at Derrevere Stevens Black & Cozad. “With a cloud-based platform that provides real-time transcription tied to instantaneous audio playback, accurate and reliable same-day transcripts, effortless creation of impactful video clips from the deposition, and AI-generated summaries, Parrot has elevated our entire firm to achieve better results on the defense side and larger recoveries in our plaintiff cases.”