Buzzy Startups Like Cursor Are Using This AI Law Firm To Close Deals Faster
Crosby, an AI-powered law firm, is disrupting the legal industry by offering faster and more affordable contract reviews, charging per contract instead of by the hour.Summary
Crosby, founded in September 2024, is a new type of law firm utilizing AI agents and 30 lawyers to expedite commercial contract reviews – including services agreements, data processing agreements, and NDAs – for approximately 100 clients. Unlike traditional firms that bill by the hour, Crosby charges a flat fee per contract, ranging from $250 to $1,000 based on page count, aligning its financial incentives with clients’ goals of faster deal closures. The firm’s AI agents review contracts in hours, with lawyers providing final checks, and have already processed 13,000 contracts, contributing to a 400% revenue growth since October.
Recently securing $60 million in Series B funding, Crosby is valued at $400 million and serves a diverse clientele, including AI startups like Cursor, Clay, and Cognition, as well as large companies like Tishman Speyer. CEO Ryan Daniels, a former lawyer, emphasizes that Crosby’s speed and efficiency are its key differentiators, contrasting with the “taxing” hourly billing model of traditional law firms. The firm’s system incorporates a feedback loop, continuously training AI agents on anonymized data to improve their performance.
While other AI-powered legal tools exist, Crosby distinguishes itself as a registered law firm, assuming liability for its contract reviews. Experts note that while AI will transform legal practice, the billable hour may persist in larger firms, but Crosby represents a significant shift towards a more efficient, AI-driven legal service model, potentially enabling “multi-party autonomous negotiations” in the future.
(Source：Forbes)