HerculesAI, formerly known as Zero Systems, has been at the forefront of automating professional services since its inception in 2017. Initially focusing on the legal industry, the company has been developing large language models (LLMs) well before they became a mainstream topic. This early adoption positioned HerculesAI advantageously when ChatGPT surged in popularity in late 2022, bringing widespread attention to LLMs. The company recently announced a $26 million Series B funding round to further capitalize on its momentum.
HerculesAI CEO and co-founder Alex Babin highlighted the company’s pioneering work with LLMs, starting with smaller models in 2020. These models, which ranged from half a billion to 2 billion parameters, were primarily run on edge devices to meet compliance requirements. Despite the innovative nature of their work, it wasn’t until the public became more aware of LLMs, particularly with the rise of ChatGPT, that interest in their technology surged.
Babin recalled the initial struggle to garner interest from clients and CIOs, stating, “It was maybe eight or nine months before ChatGPT, and I remember speaking to our clients, explaining to CIOs what an LLM is — and no one cared.” This changed rapidly by November 2022, leading to significant growth for HerculesAI.
Core AI Functions and Innovations
HerculesAI has developed several models focused on three primary functions: intelligent data extraction, data transformation, and data verification. These models are integral to the company’s offerings and provide substantial value to its clients.
- Intelligent Data Extraction: This function involves pulling data from various documents, a standard but crucial process.
- Data Transformation: The extracted data is then organized and structured automatically, building a robust set of rules around it.
- Data Verification: This critical step compares the transformed data against a source of truth, such as regulations, policies, contracts, or laws, to flag any discrepancies for employees.
Babin emphasized the importance of verification, describing it as “the holy grail” for ensuring data integrity and compliance.
Building on these core functions, HerculesAI has developed multi-agent systems to automate high-value, continuous processes or workflows that require automated decision-making. These systems are particularly valuable for regulated industries like legal, insurance, and financial services, where compliance and accuracy are paramount.
HerculesAI’s AI strategy has proven effective, with the company reporting fourfold growth over the past year. The startup boasts a substantial client base, including 30% of the top 100 law firms in the United States and several Fortune 500 companies like Mercer, Standard & Poor’s, and State Farm.
Strategic Use of Funding
Despite the influx of new capital, Babin plans to maintain a lean operational structure, focusing on refining internal processes rather than expanding the workforce significantly. “I don’t see why we need to hire more people. We will actually invest more in our internal processes and automation. We have to eat our own dog food and use our own products to make ourselves more scalable,” he explained.
The recent $26 million Series B funding round was led by Streamlined Ventures, with participation from Proof VC, Thomson Reuters Ventures, Alumni Ventures, and various industry angels. This investment will help HerculesAI enhance its offerings and continue its trajectory of rapid growth and innovation.
HerculesAI’s early adoption and development of large language models have positioned it as a leader in AI-driven automation for professional services. With significant new funding and a strategic focus on enhancing internal processes, the company is well-equipped to continue its impressive growth and provide cutting-edge solutions to its clients.
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