With over 25 years of executive and entrepreneurial experience in enterprise software and a track record of successful business exits, Pete’s leadership gives ModelOp customers, partners and employees a high level of trust and confidence in the company and its future.
The leading AI Governance software gets more fuel for innovation
We’re pleased to announce that ModelOp, the leading AI Governance software for enterprises, raised $10 million in series B equity financing led by Baird Capital with participation from existing investors. ModelOp has pioneered AI Governance software and automation, working directly with Fortune 500 companies to address the needs of enterprise executives, governance teams, and business leaders. The investment will further strengthen our position as the global leader and expand our team, accelerating go-to-market efforts and product innovation.
Fortune 500 companies and innovative enterprises — including Fidelity Investments, FINRA, and Bristol Myers Squibb — use ModelOp’s software as a single source of truth that provides real-time visibility into AI risk, performance, health, and value. Through automation, ModelOp ensures all AI initiatives are transparent, compliant, and aligned with organizational goals.
This exciting milestone will fuel the continued growth of our leading AI Governance software. Baird Capital is an incredible partner and we’re proud to tap their deep expertise in B2B technology as we help enterprises get started with governance and scale their AI initiatives responsibly.
ModelOp continues to introduce product firsts and receive critical acclaim
This investment follows the new release of ModelOp version 3.3, the third-generation of our software. It includes the world’s first AI Governance Score, which gives executives a standardized metric to measure risk and compliance across diverse AI initiatives, regardless of whether an organization is using generative AI, in-house, third-party vendor, or embedded AI systems. This groundbreaking software delivers AI accountability for executives lacking visibility into how AI is being used and its risks across the entire enterprise.
These innovations were recognized by the 2024 AI Breakthrough Awards, which named ModelOp the “Best AI Governance Platform.” Selected from over 5,000 nominations from across the world, we were honored alongside an impressive list of top companies and startups, including industry leaders like NVIDIA, Adobe, and OpenAI.
AI has an accountability problem that makes AI Governance critically urgent and important
Generative AI is accelerating digital transformation, but too many enterprises currently find their AI initiatives held back by the risks and operational bottlenecks of not having proper AI Governance. In the US alone, the World Economic Forum projects that in the next decade AI could boost GDP by up to $3.8 trillion. However, AI that lacks transparency and accountability poses significant risks and stalls innovation. In a widely-cited interview, Accenture’s CEO stated that less than 2% of executives can identify how AI is being used in their companies and its risks.
Furthermore, AI regulations are sharply increasing at the state, federal, and international levels — including the EU AI Act that went into force on August 1, US OMB Memo M-24-10, ONC’s HTI-1 Final Rule, and Texas H.B. 2060 — making compliance a top priority for enterprises across many industries. The AI Index 2024 Annual Report shows that in 2023 in the US, there were 25 AI-related regulations, up from just one in 2016. Last year alone, the total number of AI-related regulations grew by 56.3%.
In short, AI Governance is an enterprise requirement to scale and innovate, responsibly.
Chicago-based firms, ModelOp and Baird Capital, lead the way in AI Governance
ModelOp is proud to be headquartered in Chicago and we’re thrilled to partner with another top-tier Chicago firm.
“We’re very excited to partner with the ModelOp team in their mission to accelerate AI innovation while ensuring appropriate enterprise risk management and regulatory compliance,” said Jim Pavlik, Partner with Baird Capital’s Venture Capital team. “We’ve been extremely impressed by ModelOp’s robust software capabilities, strong leadership and blue chip customer base, and look forward to supporting the company’s future growth.”
With the new capital, we will build upon our market-leading automation capabilities that establish visibility into AI initiatives and enforce policies consistently to help organizations stay compliant even as regulations evolve rapidly. Join us on September 25th at 12pm ET for the 2024 AI Governance Leadership Summit to learn more about how enterprises can ensure transparency, accountability, and compliance while driving innovation.
About ModelOp
ModelOp is the leading AI Governance software for enterprises and helps safeguard all AI initiatives — including generative AI, Large Language Models (LLMs), in-house, third-party, and embedded systems — without stifling innovation. Through automation and integrations, ModelOp empowers enterprises to quickly address the critical governance and scale challenges necessary to protect and fully unlock the transformational value of enterprise AI — resulting in effective and responsible AI systems. For AI Governance insights, follow ModelOp on LinkedIn.
About Baird Capital
Baird Capital manages two investment platforms, Venture Capital and Global Private Equity, and invests in B2B technology & services-focused companies worldwide. Founded in 1989, the group focuses on investing in sub-sectors where it has deep institutional knowledge and leveraging global operating capabilities to support the operational and growth needs of partner companies. Baird Capital is the direct private investment arm of Robert W. Baird & Co. For more information, please visit BairdCapital.com.
