IntelligenceBank acquires Red Marker to boost AI compliance tools

IntelligenceBank has announced the acquisition of Red Marker, an AI-powered SaaS solution that automates brand, legal, and regulatory compliance reviews across marketing materials and websites.

This acquisition aims to assist global marketing teams in reducing time to market and avoiding substantial regulatory fines by automating traditionally manual approval processes.

The collaboration will see IntelligenceBank wholly acquire Red Marker's technology stack, intellectual property, and specialist team, which are based across Sydney, the United States, and the United Kingdom. This expansion will enable IntelligenceBank to offer brands a unified platform wherein content across print, social media, email, and digital channels can be automatically branded and legally approved using Red Marker’s patent pending AI custom rules solution.

According to IntelligenceBank's CEO, Tessa Court, companies face fines amounting to hundreds of millions of dollars each year due to inaccurate, misleading, and outdated advertising, product disclaimers, and websites. "For large corporations, marketing compliance is a multi-million-dollar problem," Court stated. "Failure to comply with regulations results in businesses having to not only pay fines to the regulator but also compensation to affected customers. This is compounded with reputational brand damage."

Court further noted, "With these two technologies coming together, we are in a unique position to provide one of the best brand and regulatory compliance solutions in the market across the content lifecycle. We have partnered with Red Marker for several years with shared customers already, and we are looking forward to expanding the joint offering across our global customer base."

The financial terms of the acquisition have not been disclosed, but it follows IntelligenceBank's 2021 strategic capital raise of USD $37 million from venture capital firm Five Elms Capital. Joe Onofrio, a partner at Five Elms Capital, expressed his enthusiasm, stating, "We are thrilled to add Red Marker's capabilities to IntelligenceBank's leading suite of tools for brand-compliant marketing. The combination will enhance the companies' missions to make brand management and compliance more efficient than ever."

Mark Wood, General Manager at Red Marker, also shared his enthusiasm for the partnership. "Both IntelligenceBank and Red Marker share a common vision to automate and scale marketing compliance across media types - which means marketing and legal teams can ensure quality and save time and money all at once. We are joining IntelligenceBank to accelerate our vision and we are looking forward to integrating Red Marker’s AI compliance technologies with such a great partner in the DAM and Marketing Operations space."

This acquisition comes at a significant time as regulators increasingly adopt artificial intelligence and machine learning to monitor and regulate advertising practices more stringently. This shift has resulted in a notable increase in investigations, penalties, and fines issued by regulators worldwide, which places enhanced risks on marketing and brand teams due to potential manual errors.

The partnership between IntelligenceBank and Red Marker is set to offer a more comprehensive suite of tools aimed at automating and enhancing marketing compliance, potentially easing the pressure on companies to stay abreast of evolving regulatory landscapes and ensuring consistent adherence to compliance requirements across various media types and channels.

The integration of the two companies’ technologies is expected to offer a more robust solution, helping marketers and legal teams manage compliance seamlessly and efficiently, reducing both the risk and cost associated with non-compliance.