As Artificial Intelligence (AI) continues to gain traction, AI vendors are placing a greater emphasis on data security. This shift is largely due to the demand for compliance with evolving data privacy regulations, such as the EU Data Act. Additionally, clients are becoming increasingly cautious about how their data is utilized and processed by these vendors.
Unfortunately, many organizations are struggling to implement robust data security practices around AI. A survey conducted by BigID, a data control platform, revealed that half of organizations consider data security as their primary obstacle to adopting AI.
Abhi Sharma and Leila Golchehreh, with backgrounds in app engineering and law respectively, recognized the challenges in this arena. With the belief that they could develop a solution to tackle data security concerns, they co-founded Relyance AI. This platform is designed to verify if a company’s data practices align with governance policies.
Drawing inspiration from a casual evening discussion over pizza in San Francisco, Sharma and Golchehreh conceived the idea for Relyance. Despite their differing backgrounds, they shared a vision of enhancing transparency in data processing within organizations.
Golchehreh, previously a senior counsel at Workday and Cruise, and Sharma, a software developer with experience at AppDynamics and FogHorn, identified three key barriers to AI adoption in most companies. These include inadequate visibility into data within AI, the complexity of data handling, and the rapid pace of innovation. Addressing these challenges is crucial to minimizing reputational risks and potential legal challenges for companies.
Relyance’s solution involves an engine that scans various data sources within an organization, including third-party applications, cloud environments, AI models, and code repositories. It then assesses whether these data sources align with existing policies and regulations, creating a detailed “data map” and “data inventory.”
While Relyance faces competition from vendors like OneTrust, Transcend, Datagrail, and Secure AI, Sharma emphasizes the platform’s unique value proposition. Relyance has experienced significant growth, with doubled annual recurring revenue projections for the current year and a 30% increase in its customer base in the first half of the year.
To fuel further expansion, Relyance recently closed a $32 million Series B funding round led by Thomvest, with investments from M12 (Microsoft’s venture fund), Cheyenne Ventures, Menlo Ventures, and Unusual Ventures. This brings the total raised by the startup to $59 million. The additional funds will be employed to expand Relyance’s team to 90 employees by the end of the year, focusing on engineering and go-to-market capabilities to support product development and growth.
In conclusion, the demand for AI technology is growing exponentially, accompanied by the implementation of new privacy and AI regulations globally. Relyance’s commitment to enhancing data security practices around AI positions it as a key player in this evolving landscape.
