The ‘Skyscanner’ Lawyer Looking To Build LegalTech Agents

A Scottish legaltech startup just got a huge cash boost. Is this the sign that AI is ready to take over law firms? Can every in-house team soon have its own AI agent? Scottish legaltech Wordsmith, co-founded by former Skyscanner honcho Ross McNairn (pictured) is driving another winner.

We’ve all sat through meetings about using AI at work. Some are hopeful, some are skeptical. AI could make us faster, or, if you believe the doomsayers, replace us all.

Legal work is not safe from this shift. Startups keep popping up, promising to fix every legal headache with AI. Some are helpful.

Some are just hype. But Wordsmith is working on putting its AI agents into in-house legal teams everywhere.

Follow the Money: Wordsmith AI’s Rise

Wordsmith AI, based in Edinburgh, just hit a $100 million valuation. That’s after only 18 months in business. For Scotland, that’s a record. The legaltech market is set to explode. Gartner says it could hit $50 billion by 2027, thanks to tools like ChatGPT.

Ross McNairn, Wordsmith’s co-founder, calls his product “air traffic control” for legal teams. It helps general counsels make decisions faster. The company already works with big names like Trustpilot and Deliveroo. Last week, Wordsmith raised $25 million to grow even more.

AI Agents: Coming to a Law Department Near You

McNairn says his team can now put “fleets” of AI agents into companies worldwide. They’ll even train your staff to use them.

Offices in London and New York are next. The goal? Make legal teams faster and more helpful. No more being seen as the group that slows things down. Now, legal can help drive revenue.

McNairn knows the legal market. He trained as a lawyer, then left to build tech. He’s helped three other tech unicorns grow. Now, he wants legal to be the “engine room” of business, not the bottleneck.

What About Legal Jobs?

People worry that AI will take their jobs. It’s an old fear—think of the Luddites, who smashed machines in the 1800s. But Wordsmith says their tech will create new jobs: legal engineers. These people will train and manage AI agents.

Still, if AI does more work, some jobs may shrink or disappear.

McNairn says, “We’re seeing a new role in law: the legal engineer. They train and manage AI agents. We’re helping people learn these new skills.”

Right now, Wordsmith’s AI can’t replace lawyers. It can help with some tasks, but not all. Over time, AI will get smarter. For now, the focus is on in-house teams. How big law firms will use this tech is still up in the air.

Why Are Investors So Excited?

Aleks Tomczyk, a legaltech advisor, calls the Wordsmith deal a “milestone” for Scotland. Hannah Seal from Index Ventures says, “AI is changing law, and Wordsmith is leading. They’re building the base for how companies work with legal.” Scotland’s Deputy First Minister, Kate Forbes, points out that Scottish startups raised over £700 million last year. Wordsmith’s success is part of that trend.

What’s Next for Wordsmith AI?

Can Wordsmith become a true unicorn? The company needs to keep growing and add more products. Mergers and buyouts could be next. But competition is fierce. Other legal AI companies are racing to catch up.

Wordsmith has had a wild ride so far. The path to unicorn status won’t be easy. But with the right moves, they could go the distance.