HerculesAI Secures $26 Million Series B to Advance Professional Services Automation

HerculesAI, previously known as Zero Systems, has been innovating in automating professional services since 2017, initially focusing on the legal sector. Over the years, they have developed large language models (LLMs), long before these became mainstream. This foresight positioned them advantageously when ChatGPT surged in popularity in late 2022, sparking widespread interest in LLMs.

The company has now secured a $26 million Series B investment to capitalize on its recent successes.

Alex Babin, CEO and co-founder of HerculesAI, shared that since around 2020, they have been working on smaller models with parameters ranging from half a billion to two billion. These models were designed to run on edge devices for compliance purposes. Despite the innovative approach, this aspect of their technology largely went unnoticed until the emergence of ChatGPT. 

"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," Babin recalled. The landscape changed dramatically by November of that year, with a surge in interest in LLMs, fueling significant growth for HerculesAI.

Today, HerculesAI's models perform three primary functions: intelligent data extraction, data transformation, and data verification. The first involves extracting data from documents. The second function involves automatically creating rules and structures around the extracted data. The third function, verification, is particularly crucial as it ensures that the data aligns with the original source, whether it be regulations, policies, contracts, or laws. This feature automatically flags any discrepancies for employees.

These capabilities have allowed HerculesAI to develop a multi-agent system that automates these activities, particularly valuable for regulated industries such as legal, insurance, and financial services.

The company's strategy has paid off, with a reported 4x growth over the past year. They now serve 30% of the top 100 law firms in the U.S. and boast a clientele that includes several Fortune 500 companies like Mercer, Standard & Poor's, and State Farm.

Despite the recent funding boost, HerculesAI plans to maintain a lean team of around 75 employees. Babin emphasized the importance of investing in internal processes and automation over expanding the workforce. "We have to eat our own dog food and use our own products to make ourselves more scalable," he stated.

The latest funding round was led by Streamlined Ventures, with contributions from Proof VC, Thomson Reuters Ventures, Alumni Ventures, and various industry angels.