Big Four firm Deloitte has spun out its home-grown CLM company, Arteria AI, formerly known as dTrax, to be a separate business, in part to allow more external investment. Deloitte told Artificial Lawyer the firm will retain a minority ownership share in the company, which also uses NLP technology for doc analysis. It has a strong focus on the banking sector and has handled matters such as LIBOR/IBOR repapering.
Two of the co-founders going with the business are Shelby Austin, (above right), now CEO of Arteria, and Abrar Huq, (above left), Chief Revenue Officer. They are former lawyers and also most recently partners within Deloitte’s Artificial Intelligence practice.
Austin oversaw 500-plus AI practitioners at Deloitte as Managing Partner of Omnia AI, Deloitte Canada’s AI practice and is also a serial entrepreneur in the legal technology space, having sold her previous company ATD Legal to Deloitte in 2014.
In terms of what the company does, Arteria takes ‘a data-first and AI-oriented view to CLM’ and ‘covers the end-to-end of contract management, from contract generation through negotiation and execution with configurable workflows and analytics throughout’. Arteria also has a contract extraction module which uses NLP.
Artificial Lawyer spoke to Huq to find out some more.
Is this a mainly Canada-focused CLM company?
Arteria AI (formerly known as dTrax) has a global footprint with existing and pending external client deployments across the United States, Canada, the United Kingdom and Asia-Pacific.
What are its clients other than Deloitte?
Arteria AI currently directly serves clients outside of Deloitte globally, with a particular focus on banking. Arteria counts several top tier global banks as clients today. With this strong international banking client footprint, Arteria will seek to enter and expand into new markets as part of its growth plan.
Within banking, Arteria has a strong footprint in supporting business-as-usual contracting activities – at one institution, 70% of their contracting through a major line of business is done through the Arteria platform – as well as LIBOR repapering, with a number of banks around the world using or planning to use the Arteria technology to remediate their contracts for LIBOR transition.
Why do this now?
The spin-off will enable Arteria AI to scale faster by being able to seek increased outside investment. This is an exciting time for the development of technology to serve the legal department and organizations as a whole.
By spinning out Arteria AI, Deloitte is encouraging the rapid development of our award-winning technology for ever broader use cases and application through external investment.
Does it have any law firm clients?
Although the end users/clients of Arteria are typically legal departments, Arteria regularly partners with law firms to serve clients of those law firms. As before, Arteria will continue to explore partnership opportunities with law firms and continue to serve a part of Deloitte’s overall law firm strategy.
Will Deloitte still have a share in the ownership of the company?
Deloitte will retain a minority stake in Arteria AI and will continue to be Arteria AI’s preferred services partner.