Wordsmith, a Scottish legal tech startup, has quickly gained attention from top venture capital firms. The company offers an AI platform designed to assist in-house legal teams and law firms by enabling other employees to handle legal tasks like contract reviews and document queries. This platform is set to revolutionize how businesses handle legal work by providing AI-driven assistance while keeping lawyers involved when necessary.
Founded in Edinburgh in October last year, Wordsmith is led by former senior TravelPerk executives Ross McNairn (CEO) and Robbie Falkenthal (COO), along with CTO Volodymyr Giginiak, who has an impressive background with roles at Microsoft, Facebook, and Instagram. Just six months post-launch, Wordsmith boasts significant customers such as Trustpilot and is partnering with major law firm DLA Piper.
Backing and Investment
Wordsmith’s potential has attracted a $5 million seed investment led by Index Ventures, with participation from General Catalyst and Gareth Williams, founder and former CEO of Skyscanner. The backing from such high-profile investors underscores the startup’s promise and the founders’ strong reputations. McNairn’s diverse background includes founding a travel management startup acquired by Skyscanner and holding leadership roles at LetGo and TravelPerk.
The legal tech sector is experiencing a surge in AI-driven solutions, with companies like Harvey AI, Luminance, Definely, and Lawhive making significant strides. Wordsmith differentiates itself by targeting not just lawyers but all employees within a company. Their AI platform, configured by legal teams, allows employees to handle simpler legal tasks while still involving lawyers for more complex issues.
How Wordsmith Works
Wordsmith provides two main configurations: autopilot for routine tasks and co-pilot for tasks requiring legal oversight. This setup enables employees, such as sales or procurement staff, to efficiently manage contracts or data access requests by querying the AI platform. Wordsmith uses a combination of large language models, including OpenAI’s GPT-4 and Anthropic’s Claude, to deliver precise and logical responses based on the company’s data.
To address concerns about generative AI, Wordsmith ensures that it keeps company data within the EU and does not use it to train their AI models. The platform uses retrieval augmented generation (RAG) to access and utilize data only when needed, ensuring data privacy and security.
Initially focused on enhancing in-house legal teams, Wordsmith is also collaborating with law firms like DLA Piper to develop specialized AI agents. These agents can be used to offer new, cost-effective legal services, making high-frequency legal tasks more affordable and accessible.
With $5 million in funding, Wordsmith plans to accelerate hiring in Scotland and the U.S. Currently employing nine people, the company aims to make Edinburgh its central hub, contributing to the local tech ecosystem and building on McNairn’s passion for fostering innovation in Scotland.
Wordsmith’s innovative approach to integrating AI with legal expertise positions it as a promising player in the rapidly evolving legal tech landscape. By enabling all employees to handle legal tasks efficiently, Wordsmith aims to transform how businesses manage legal processes.
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