gradient A.I
Boston, US · Founded 2018 · Delaware corporation · 1 known investors
Insurance-focused AI company providing predictive analytics and data warehousing for underwriting and claims management.
Also known as gradient A.I. · Gradient A.I. · Gradient AI
Founders & leadership
Board
Investors · 1
Reported raises · per SEC filings
Form D private placements$69.4M disclosed across 4 rounds · 2018–2024
▶$36.1MraisedJul 2024 · 5 investors · OtherRule 506(b)
- Eric EmmonsDirector
- Stanford SmithExecutive Officer, Director
- Christopher ZockDirector
- Matthew AlfieriDirector
- Jim CarrExecutive Officer
- Offering amount
- $56.1M
- Amount sold
- $36.1M
- First sale
- Jun 2024
- Incorporated
- Corporation, Delaware
- Federal exemptions
- 06b
▶$19.7MraisedApr 2021 · 8 investors · OtherRule 506(b)
- Thomas HawkinsDirector
- Stanford SmithExecutive Officer, Director
- Eric EmmonsDirector
- Kyle BeattyDirector
- Christopher ZockDirector
- Offering amount
- $19.7M
- Amount sold
- $19.7M
- First sale
- Mar 2021
- Incorporated
- Corporation, Delaware, 2018
- Federal exemptions
- 06b
▶$8.7MraisedOct 2019 · 3 investors · OtherRule 506(b)
- Christopher ZockDirector
- Eric EmmonsDirector
- Aaron ShapiroDirector
- Stanford SmithExecutive Officer, Director
- Thomas HawkinsDirector
- Offering amount
- $8.7M
- Amount sold
- $8.7M
- First sale
- Sep 2019
- Incorporated
- Corporation, Delaware, 2018
- Federal exemptions
- 06b
▶$5MraisedJan 2019 · 2 investors · OtherRule 506(b)
- Stanford SmithDirector
- Offering amount
- $5M
- Amount sold
- $5M
- First sale
- Dec 2018
- Incorporated
- Corporation, Delaware, 2018
- Federal exemptions
- 06b
Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.
Company profile
researched Aug 2026gradient A.I. supplies predictive analytics and data warehousing services to insurance organizations, applying artificial intelligence to underwriting and claims-management models. Its analytics are built on a database combining data contributed by its clients, data originating from Milliman, and other third-party sources; the company states that it anonymizes information as far as possible and segregates data as required by individual usage agreements.
The business began as a unit inside the insurance advisory firm Milliman, where founder Stan Smith started it after joining the firm in 2013. In August 2018 Smith acquired the unit from Milliman, making gradient A.I. fully independent, with approximately 20 staff transferring to the standalone company. Announcements at the time noted continuity of support for existing and new clients and an intention to continue working with Milliman where opportunities arise.
Founding story
Stan Smith joined Milliman in 2013 to start gradient, following a series of earlier startups that included a predictive modeling service for supply-chain management. Milliman later concluded that the unit did not align with its consulting services and elected to spin it out; Smith purchased the portion of the business he did not already own, becoming founder and CEO of the independent company.
Business model
The company sells predictive analytics and data warehousing services to insurance carriers and self-insured risk-bearing organizations, powering underwriting and claims-management models with AI and leveraging a pooled database drawn from client, Milliman and third-party data.
Traction
As of August 2018 the company had about 20 employees and named clients including CIRMA, The Builders Group and A.I.M. Mutual, and reported inbound interest from midmarket carriers larger than its original target segment.
Latest developments
In August 2018, founder and CEO Stan Smith acquired the gradient A.I. business unit from Milliman on undisclosed terms, establishing it as an independent company focused on growth among midsize insurers.
▸Full profile — market position, go-to-market, geography, history
Market position
The company positions itself in insurance predictive analytics, initially serving smaller risk-bearing entities and then moving toward midmarket carriers, citing the scale of the data set accumulated during its time within Milliman as an advantage.
Management points to the breadth of its data asset — assembled from client data, Milliman data and third-party sources — as enabling detection of anomalous outcomes even for carriers with only hundreds of millions of dollars in premium.
Go-to-market
The company sells directly to insurance organizations, having built credibility with risk pools, self-insured employers and small mutuals whose references and shared experience support expansion into larger midmarket accounts.
Initial customers were risk pools, self-insured companies and small mutual insurers, including the Connecticut Interlocal Risk Management Agency (CIRMA), The Builders Group and A.I.M. Mutual. Following independence, the company reported demand from midsize carriers, including insurers with up to $1 billion in premium.
Geography
Operations reported in the Boston area, with the 2018 spin-out announcement issued from Cambridge, Massachusetts.
History
gradient A.I. originated as a business unit of the insurance advisory firm Milliman, established by Stan Smith after he joined Milliman in 2013. On August 20, 2018, Milliman's gradient A.I. unit was acquired by Smith, the practice leader, and the business became fully independent, retaining a staff of about 20 and continuing to serve existing clients while pursuing new ones.
Compiled by commissioned research from 2 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Timeline · 1
launches, deals, and filingsMilliman's gradient A.I. business unit was acquired by its practice leader and founder Stan Smith, making the business fully independent. Terms were not disclosed; about 20 staff moved with Smith to the standalone company.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
Legal entities · 1
corporate structure▸Research sources · 2
primary sources listed
- Gradient A.I., spun out of Milliman, looks to midsize insurers for growth — PEO Compasspeocompass.com · web
2 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does gradient A.I do?
- Insurance-focused AI company providing predictive analytics and data warehousing for underwriting and claims management.
- Who are gradient A.I's investors?
- gradient A.I's investors include MassMutual Ventures.
- How much funding has gradient A.I raised?
- gradient A.I has disclosed $69.4M raised across 4 rounds.
- Where is gradient A.I headquartered?
- gradient A.I is headquartered in Boston, US.