The legal tech space is increasingly adopting generative AI to automate repetitive tasks, allowing legal professionals to focus on more strategic work. Wordsmith uses a combination of large language models, including OpenAI’s GPT-4 and Anthropic’s Claude, to provide its services. The company ensures data privacy by not training its AI on companies’ data and allowing companies to stipulate that their data doesn’t leave the EU. Wordsmith is also exploring partnerships with law firms to co-develop AI agents for specific legal domains, potentially offering a new, lower-cost legal service.
Key takeaways:
- Scottish legal tech startup Wordsmith has secured a $5 million seed investment led by Index Ventures, with participation from General Catalyst and Gareth Williams, founder and former CEO of Skyscanner.
- Wordsmith provides an AI platform that helps in-house legal teams and law firms automate repetitive, labor-intensive work, allowing them to focus on more strategic tasks.
- The startup is also partnering with law firms, such as DLA Piper, to co-develop AI agents that could be sold as a new type of legal service.
- With the new funding, Wordsmith plans to accelerate its hiring in Scotland and the U.S., with a focus on making Edinburgh the company's center of gravity.