The cumbersome task of reviewing repetitive documents has long been a bane for finance and accounting departments. Enter Klarity: a trailblazing AI tool engineered to convert documents into structured data, thus freeing professionals from the mundane grind. Since its inception, Klarity has garnered significant attention for its innovative approach to full document automation, contrasting sharply with the companies that have only achieved partial automation and failed to scale. Let’s delve into what Klarity is doing, how it’s changing the landscape, and what it means for the future.

The Nascent Market of Full Document Automation

Document automation isn’t a novel concept, but the execution has often left much to be desired. Ondrej Antos, co-founder and CEO of Klarity, underscores that the market for full document automation is still in its infancy. “Most existing companies focus on tasks that still require human oversight, which can stifle scalability,” he said—highlighting a crucial point: the potential of full automation to replace human reviews for about 85% of documents with higher accuracy.

• Repetitive Tasks Are a Drain: Klarity aims to alleviate the strain on finance professionals who are often inundated with countless identical documents.
• Targeted Audience: The software not only serves large enterprises but also appeals to mid-market firms that handle hundreds of documents monthly, expanding Klarity’s market opportunity.

Klarity’s Journey from Concept to Reality

Founded in 2017 by Antos and Nischal Nadhamuni, who crossed paths at MIT, Klarity was born out of a personal experience. Antos’s background as a corporate lawyer made him all too familiar with the tediousness of massive data reviews, while Nadhamuni’s expertise in Natural Language Processing provided the technical foundation to redefine document understanding.

The culmination of their efforts led to the product launch in August 2020, originally focusing on high-volume document review tasks like accounting orders and purchase agreements. Their success is evident—over the past nine months, Klarity has amplified its annual recurring revenue nine times, emphasizing a robust demand for its services.

Recent Capital Infusion and Growth Prospects

On the heels of this remarkable growth, Klarity recently secured $18 million in a Series A funding round led by Tola Capital. This fresh capital is earmarked for bolstering sales, marketing, and research development. Not only does this signify investor confidence, but it also sets the stage for Klarity to expand its team—growing from a mere 14 employees to 34 within a year.

The future looks bright with new use cases on the horizon, targeting areas such as deal desks, renewals, and procurement teams by late 2022. “We aim to educate the market on the existing technological solutions to streamline document review within accounting teams,” Antos explains, positioning Klarity as a leader in redefining document management practices.

Implications for the Finance Industry

The implications of Klarity’s advancements extend far beyond immediate productivity benefits. By automating document review processes, companies can expect:

• Enhanced Accuracy: With an AI model that boasts higher accuracy, firms can minimize human error.
• Time Savings: Financial professionals can dedicate more time to strategic tasks rather than mundane document reviews.
• Cost Efficiency: Reducing the need for extensive human resources in document processing can lead to significant cost savings.

Conclusion

Klarity stands at the forefront of a revolution in document automation, poised to tackle inefficiencies within the finance sector. As they continue to grow their team and expand their offerings, the question remains: will other firms follow suit in embracing this shift toward full automation? In a world where time is money, Klarity’s solution is not just timely but essential.

At fxis.ai, we believe that such advancements are crucial for the future of AI, as they enable more comprehensive and effective solutions. Our team is continually exploring new methodologies to push the envelope in artificial intelligence, ensuring that our clients benefit from the latest technological innovations. For more insights, updates, or to collaborate on AI development projects, stay connected with fxis.ai.