The burgeoning field of artificial intelligence (AI) holds immense potential to augment industries, but its rapid growth has also sparked concerns about potential risks.
To address these concerns and build trust in AI adoption, Armilla AI, a Toronto-based platform, has secured $4.5 million in seed funding. The round was led by Mistral Venture Partners with participation from MS&AD Ventures, SixThirty Ventures, Morgan Creek Digital and Y Combinator and insurance providers Greenlight Re and Chaucer. The funding will enable the expansion of Armilla Guaranteed, a quality assessment and performance guarantee for AI products.
Late last year, a somewhat similar Paris-based organisation Orus raised €11M to simplify access to insurance for businesses.
Karthik Ramakrishnan, CEO and co-founder of Armilla AI: “Enterprises lack confidence in third-party AI vendors. Our warranties ensure they get compliant, well-performing models, with protection if anything goes wrong.”
The growing need for AI risk management
As AI permeates various sectors, from healthcare and finance to manufacturing and customer service, concerns about ethical development, bias, and potential misuse are rising. A Deloitte survey revealed that 75% of C-suite executives feel unprepared to manage emerging AI risks, highlighting the need for solutions. Governments are also taking action, with the Biden administration issuing an executive order on responsible AI and the EU pursuing the AI Act, setting stricter regulations.
How Armilla AI steps in
Armilla AI positions itself as a bridge between enterprises and trustworthy AI, offering risk mitigation and transfer solutions. Their flagship product, Armilla Guaranteed, acts as a safety net for businesses hesitant to adopt potentially risky AI models. The platform conducts comprehensive assessments, leveraging industry-leading AI/LLM evaluation technology, to identify issues like bias, weak data, and potential performance failures.
Raif Barbaros, Partner at Mistral Venture Partners: “Armilla helps businesses navigate regulatory challenges and minimise risk. Their commitment to fairness and testing makes AI safer for everyone.”
Guaranteeing performance and fairness
If an AI model assessed by Armilla Guaranteed fails to meet performance expectations or exhibits bias, the platform guarantees reimbursement of the licence fee to the buyer. This unique feature is backed by leading reinsurers like Swiss Re, Greenlight Re, and Chaucer, providing additional assurance and financial protection.
Beyond verification: Building trust and transparency
Armilla goes beyond mere verification by fostering transparency and trust throughout the AI adoption process. Their assessments offer detailed reports highlighting potential risks and areas for improvement, empowering businesses to make informed decisions. This transparency also benefits AI vendors, who can showcase their commitment to responsible development and build trust with potential clients.
Expanding impact and leadership
Armilla is actively supporting AI vendors in healthcare, finance, and manufacturing, demonstrating the versatility of their solution across industries. Jerry Gupta, a former Senior Vice President at Swiss Re, has joined the team, bringing his expertise in insurance and emerging tech products to further refine Armilla’s AI warranty offering.
Tiffine Wang, Partner at MS&AD Ventures: “We invest in Armilla because they promote responsible AI and provide peace of mind, crucial for new technologies like AI.”
The future of AI with Armilla
Armilla’s approach represents a significant step towards making AI adoption more accessible and responsible. By combining comprehensive risk assessment, financial guarantees, and a commitment to ethical development, they empower businesses to confidently leverage the power of AI while mitigating potential risks.
What we think about Armilla
As AI continues to evolve, Armilla’s role in fostering trust and responsible development will become increasingly crucial. With their innovative solutions and growing partnerships, they are well-positioned to shape a future where AI benefits both businesses and society at large.
