truthsystems

💬 TL;DR: GenAI introduces compliance & governance nightmares to all firms in regulated industries. We solve this by building an AI governance agent that monitors AI use and flags potential policy violations to end users.

💬 The Problem

Law firms, banks, and other firms in regulated industries want to use more AI, but doing so without robust governance tools risks compliance breaches and client trust loss.

The problem is most acute in law firms, which we observed firsthand as AI researchers at Stanford Law School. It stems from three primary challenges:

• Unmanaged Liability: There is no room for mistakes at law firms. Simple actions, such as uploading confidential files to AI tools or relying on AI-generated citations, can result in millions of dollars' worth of breaches and, more importantly, erode client trust.
• No Operational Control: Firms can't see or control how employees use different AI tools, and they have no way to enforce the policies they write.
• Conflicting Client Mandates: One client may require prior written approval for all AI tools, another might forbid their data on a specific matter from leaving the country, and a third bans AI entirely. Manually enforcing these unique rules for every client and their respective matter is impossible.

The result: Firms hesitate to fully embrace AI, fearing reputational damage and costly mistakes; many ban AI or have already paid millions for errors discovered too late.

🏆 The Solution

Truth Systems provides firms with a compliance AI agent that reads firm policies and client guidelines, then converts them into dynamic guardrails that can be enforced on top of all AI usage

Here’s an example of how it works:

Truth Systems - August 2025 Demo

🖖 Why We Build Truth Systems

We are a team of AI nerds, researchers, and product builders who believe that responsible deployment of technology is the key to unlocking meaningful innovation in regulated industries.

Our co-founders, Alex Mac and Nam Nguyen, were childhood best friends and AI researchers at Stanford Law under Dr. Megan Ma, collaborating with top law firms to address their concerns about this technology. Our founding engineer, Mikolaj Bochenski, was the 2nd hire at Legora, one of the largest Legal AI companies in the world, and understands intrinsically how legal AI is built and deployed.

We’re already working with two law firms with $2 billion in revenue combined, and helping nearly 1,500 attorneys use generative AI safely and responsibly.

📈 The Opportunity

Our vision is to continue being the leading software that governs all AI use in regulated industries. Law firms are only the first steps for us. They are trusted advisors on governance and an important customer that helps us expand into other regulated industries. We envision a future where every knowledge professional can confidently and safely adopt the latest AI capabilities.

⭐ Our Ask

We are live and are onboarding law firms daily. If you know any:

• Lawyers, Innovation folks, or Governance/ Info Sec Teams at Big Law, we should talk to
• Front-end Devs who are passionate about cracking the hardest security problems in regulated industries

Please drop us a note at nam.nguyen@truthsystems.ai

Many thanks for your support! ❤️