The question of return on investment (ROI) for legal tech tools is perennial, particularly in the legal sector where measuring the value of AI implementations can be complex. Pay-i, a startup founded by a team including two senior ex-Microsoft executives, aims to address this challenge with a platform designed to ‘track and forecast genAI returns in real-time.’ The company argues that merely measuring genAI usage is insufficient and that a more nuanced approach is needed.
Key Features of Pay-i
Pay-i’s platform provides a real-time dashboard that links every AI model call, prompt, and token to measurable business outcomes. This allows users to assign explicit dollar or time values to key performance indicators (KPIs), compare different versions of a use case, and instantly determine which AI model, agent, or prompt delivers the strongest return. A built-in forecasting engine then projects these returns forward, enabling companies to prioritize effective implementations, eliminate those that don’t perform, and scale genAI with confidence.
Founding Team and Investment
The company was founded by CEO David Tepper, who spent 19 years at Microsoft and was a leader in Azure’s internal genAI consumption strategy. Tepper co-founded Pay-i alongside CTO Doron Holan, a 27-year Microsoft veteran, and COO Erik Winters, an experienced operator in scaling early-stage companies. The $4.9 million Seed round was co-led by Fuse Partners and Tola Capital, with participation from other investors.
Addressing ROI Challenges in Law Firms
While Pay-i’s tool shows promise, its application in law firms faces a unique challenge: the traditional billing model based on time. As the article notes, ‘the problem with ROI and law firms is… time vs efficiency.’ Law firms that bill by the hour may not benefit from efficiency gains brought about by AI tools. However, for in-house teams where value is paramount, such tools can be more straightforwardly beneficial.
Future Prospects
Pay-i’s solution could help companies navigate the complex landscape of genAI implementation and measurement. As Sheila Gulati of Tola Capital noted, ‘Pay-i turns every AI decision into a clear cost-to-value ratio, letting enterprises see, in real time, how model and design choices affect their metrics.’ With the enterprise genAI investment projected to top $632 billion by 2028, addressing ROI measurement challenges is crucial.
For those interested in the cutting edge of legal AI and innovation, the Legal Innovators California Conference in San Francisco on June 11 and 12 will feature speakers from leading law firms, in-house teams, and tech companies sharing their insights on the latest developments.
