Harvey secures $300M to grow legal AI assistant, hits $5B valuation

Harvey Secures $300M to Advance Its AI Legal Assistant

Harvey, a company specializing in AI software for legal professionals, has raised $300 million in a late-stage Series E funding round. Leading the investment were Kleiner Perkins and Coatue, accompanied by several other notable backers such as Alphabet Inc.’s GV, the OpenAI Startup Fund, and Sequoia. This funding values Harvey at $5 billion, more than doubling its previous valuation of $2 billion earlier this year.

AI Tools Built for Legal Teams

Harvey, operating under the name Counsel AI, develops artificial intelligence tools aimed at improving the productivity of legal teams. Its platform is currently used by over 330 law firms and organizations across more than 50 countries. As of April, Harvey reported annualized recurring revenue of $75 million, up from $50 million just months prior.

One of its core offerings, Harvey Assistant, automates the early stages of legal document drafting. The tool gathers relevant information from court filings and legal sources using natural language prompts, complete with citations to help verify accuracy. Once the necessary documents are collected, it assists with drafting, checks compliance against internal filing guidelines, proofreads, translates documents, and autofills contract fields.

Simplifying Document Revisions with AI

Legal agreements often undergo numerous revisions. The editing process, known as redlining, involves marking changes with red strikethroughs. Harvey’s platform can automatically summarize these edits, helping legal teams manage revisions more efficiently.

To power this feature, Harvey developed a custom AI model with about 100,000 parameters and a convolutional neural network architecture commonly used in image processing. Before processing, contracts in PDF format are converted into grayscale images. This approach enhances the model’s accuracy and speeds up its analysis.

Integration with Leading AI and Legal Data Providers

Besides its proprietary model for redlining, Harvey leverages large language models from providers like OpenAI for other functions. The company plans to incorporate AI models from LexisNexis, a major legal document database and software provider. LexisNexis’s parent company, RELX plc, also participated in Harvey’s recent funding through its REV venture capital arm.

Looking Ahead

With the new capital, Harvey intends to double its workforce, currently over 340 employees, and expand beyond the legal sector into new market segments. This growth reflects increasing demand for AI-powered tools that streamline legal workflows and reduce manual effort.

For legal professionals interested in exploring AI tools and training, resources like Complete AI Training’s AI tools directory offer valuable insights into available solutions.