HerculesAI, formerly known as Zero Systems, has been pioneering the automation of professional services since 2017. Initially focusing on the legal industry, the company has been developing large language models (LLMs) long before they became a mainstream phenomenon. With the recent surge in interest in LLMs, HerculesAI has leveraged its early start to achieve significant growth. The company recently announced a $26 million Series B investment to capitalize on this momentum.
HerculesAI’s journey with LLMs began around 2020, when they started building models with half a billion to two billion parameters, specifically designed for edge devices to meet compliance requirements. Despite their innovative work, the concept of LLMs didn’t gain widespread attention until the advent of ChatGPT in late 2022. This sudden interest in LLMs has significantly benefited HerculesAI, positioning them as a leader in the field.
CEO and co-founder Alex Babin recalls the early days of explaining LLMs to clients, who showed little interest at the time. However, the rise of ChatGPT dramatically shifted perceptions, leading to increased interest and rapid growth for HerculesAI over the past year.
Core Functions and Applications
HerculesAI’s technology focuses on three primary functions: intelligent data extraction, data transformation, and data verification.
- Intelligent Data Extraction: This involves pulling data from various documents, a relatively standard process.
- Data Transformation: The system automatically builds rules and structures around the extracted data, facilitating better organization and usability.
- Data Verification: This is a crucial aspect, as it involves comparing extracted data with source materials such as regulations, policies, contracts, and laws to flag any discrepancies automatically. Babin describes this as the “holy grail” of their technology.
These functions support the development of a multi-agent system that automates high-value, continuous processes or workflows requiring automated decision-making. This system is particularly beneficial for regulated industries such as legal, insurance, and financial services.
Growth and Market Presence
HerculesAI’s strategy has proven successful, with the company reporting a fourfold growth over the past year. They serve 30% of the top 100 law firms in the U.S. and have numerous Fortune 500 clients, including Mercer, Standard & Poor’s, and State Farm.
Despite the new funding, HerculesAI plans to remain lean, focusing on refining internal processes rather than significantly increasing their workforce. The company currently employs around 75 people, and Babin emphasizes the importance of using their own products to enhance scalability and efficiency.
The $26 million Series B round was led by Streamlined Ventures, with participation from Proof VC, Thomson Reuters Ventures, Alumni Ventures, and various industry angels. This funding will support HerculesAI in further developing its technology and expanding its market presence.
HerculesAI’s early adoption of LLM technology and its strategic focus on high-value professional services automation have positioned it as a leader in the field. With significant new funding, the company is poised to continue its growth and innovation, providing advanced AI-driven solutions to a growing list of prestigious clients.
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