Norm AI, a legal AI technology startup based in New York, is putting AI agents to work for streamlining legal and compliance functions. The startup raised $120 million in its Series C funding round in July 2026. As a result of this latest financing round, Norm AI is valued at $1.2 billion.

The company is building AI agents with legal expertise in order to automate compliance and regulatory workstreams. While Norm AI is increasingly focused on improving the ability of its AI technology to supervise other AI agents to do regulated work, human supervision of legal work is still a key tenet. Norm AI serves a number of large corporate clients, especially in the financial services and insurance industries.

The startup also launched an affiliated law firm called Norm Law LLP, which it describes as “the world’s first AI-native full-service law firm.” The law firm runs on Norm AI’s agentic technology platform. Norm Law employs a team of skilled lawyers who combine their years of legal expertise with the automation power of AI agents to deliver results for clients. Most lawyers have expertise in corporate law, specializing in practice areas such as investment funds, tax, financial regulation, venture capital financing, and private equity.

In addition to hiring lawyers who actively practice law, Norm Law employs legal engineers, software engineers, and AI engineers. A legal engineer is a relatively new career field that combines legal and technical expertise. Many of these individuals previously worked at law firms or as in-house counsel before learning how to write software code for automating legal workflows.

Unlike traditional law firms, Norm Law has a different operating model and pricing structure. Instead of billing clients by the hour, Norm Law charges clients based on outcomes. This pricing model better aligns the incentives of the law firm and its clients. Since the AI agents can learn from prior experience, benefits compound over time.

Investors in the Series C funding round included Kholsa Ventures, Bain Capital Ventures, and Vanguard. The company plans to use the newly raised money toward increased hiring and further refining its agentic AI capabilities.

John Nay, the founder and CEO of Norm AI, has significant research and academic experience at the intersection of AI and law. He founded Norm AI in 2023. Prior to founding Norm AI, he launched an AI-investment software platform called Brooklyn Investment Group.

Mr. Nay is advising Delaware, the U.S. state where the majority of U.S. corporations are registered, on legal guidelines for the creation of a new category of “artificial intelligence company” (AIC) run entirely by AI agents. Delaware is preparing in advance for a potential future where the companies led and managed by AI agents enter into contracts, pay third parties, and make business decisions. Pursuant to the proposals, the AIC would be able to own assets, incur obligations, and engage in litigation. The AIC’s human backer would be shielded from certain forms of legal liability.