We sat down with Stuart Lacey, founder and CEO of Labrynth.ai, a newly launched AI-native company on a mission to eliminate regulatory bottlenecks—one of the most entrenched obstacles to economic progress in America. Purpose-built to serve developers, infrastructure owners, municipalities and permitting authorities, Labrynth fuses legal-grade transparency with Retrieval-Augmented Generation (RAG) and agentic AI to streamline compliance, accelerate approvals and unlock faster revenue.

Backed by Infinity Constellation and spun out from Invisible Technologies, Labrynth is already helping cities and private firms move from months-long delays to approvals in days.

We’re laser-focused right now on high-impact wedge markets where a single permitting improvement can unlock massive downstream economic activity.

A serial RegTech entrepreneur with 13 patents and a career devoted to solving high-friction problems, Stuart shares why now is the time to modernize permitting—and how AI can be the bridge between public oversight and private progress.

What inspired the launch of Labrynth, and why now?

After 15 years at the pointy edge of fintech and regtech, I saw just how much innovation stalls at the altar of regulation—projects delayed, capital stuck and teams buried in paperwork. For a long time, I wasn’t sure it could be fixed. But recent breakthroughs in AI and large language models changed everything. Suddenly, we could see a future where regulation wasn’t a roadblock—it was a bridge. Labrynth was born from that clarity. For the first time, the technology is advanced enough to turn regulatory complexity into an advantage—cutting friction without cutting corners

What makes Labrynth different from other AI solutions in this space?

Most players in this space retrofitted old systems with an AI wrapper—it’s like renovating a 1970s house with smart bulbs and calling it a smart home. Labrynth is different. We built from scratch, AI-native from the ground up, on the latest technology stack. Our models aren’t just checking boxes—they’re trained on real precedent and permitting nuances, enabling our clients to file ‘first-time-right’ applications that avoid dreaded loops. And we do this with transparent, legal-grade AI that mirrors how a great regulatory analyst or attorney would reason—evidence-based, auditable and outcome-aligned.

You’ve launched over a dozen ventures. How does Labrynth build on your experience in tech and regulation?

Labrynth is the natural evolution of everything I’ve built over the past two decades. From fintech to regtech to digital identity, my ventures have lived at the crossroads of technology and compliance—often in some of the most heavily regulated sectors across North America, Europe, and Africa. The constant thread? Regulation was always the bottleneck. With Labrynth, we’re applying the most advanced tools in AI to that long-standing chokepoint. We know what great compliance looks like because we’ve built systems that had to perform under real pressure from day one. Now, with agentic AI and modern LLMs, we can take on that complexity at scale—turning mountains of requirements into streamlined, auditable, real-time action. That’s the breakthrough.

What sectors or clients are you targeting initially?

We’re focused on what we call the PROPEL economy—those driving progress in property, real estate, owners of infrastructure, private equity, engineering and licensing. These are the builders behind American growth, and they’re stuck waiting on permits. Our early traction is in energy, medical devices, infrastructure and construction. But we’re laser-focused right now on high-impact wedge markets where a single permitting improvement can unlock massive downstream economic activity.

What kind of impact are you already seeing with early users or pilots?

We’re seeing meaningful and measurable ROI: hundreds of thousands of dollars saved, thousands of hours unlocked, and more efficient capital deployment. One of our first municipal clients in California is already working with us to reduce permitting backlogs and transform approval timelines from months to days. What’s most encouraging is the shared benefit: cities become more attractive for investment and development, while builders and developers gain speed, clarity, and predictability in the process.

How does Labrynth’s business model align incentives with its clients?

We flipped the model. Traditional lawyers and consultants bill by the hour, so delays can actually boost their revenue. In contrast, we have an aligned model, where we earn when our clients gain—faster approvals, lower consultant spend, and quicker time to market. Once a model is trained on a permitting workflow, every future client benefits at near-zero marginal cost. That’s alignment. And rather than displace experts, we empower them: firms can do 10x the work at a fraction of the cost, meaning they can actually double revenue while helping more clients.

You talk about ‘transparent AI’—what does that mean in practice, especially for regulators and governments?

We don’t believe in black-box AI—regulators can’t trust what they can’t understand. That’s why we train our models not just on requirements, but on precedent—on what “great” looks like. This enables users to pre-validate an application before it’s even filed, eliminating error loops. Every recommendation is traceable, showing exactly what’s missing, why, and how to fix it. Instead of waiting weeks for an opaque rejection, you get upfront clarity. This is operational transparency—delivering clarity, trust, and faster outcomes on both sides of the bridge.

What role do partnerships—public or private—play in your go-to-market strategy?

A rising tide lifts all boats. We’re deeply partnership-driven. Builders want speed. Governments want reliability. We’re in the middle, creating a bridge. And what’s happening now is really interesting—firms are approaching us not just to use the platform, but to become licensed deployers. They see the opportunity to offer better service, gain market share, and avoid being left behind as AI transforms how permitting gets done. We see Labrynth as a catalyst—not a disruptor—for enabling that shift.

What’s your call to action for decision-makers who are still navigating red tape the old way?

The cost of inaction is no longer just inefficiency—it’s lost growth, missed capital and delayed progress for entire communities. If you’re still navigating permitting the traditional way, you’re playing a slower, more expensive game. My message is simple: let’s modernize together. Whether you’re a mayor trying to attract development or a builder racing against capital costs, Labrynth can help you get there faster, with clarity and confidence. The technology is here—and it’s ready to work for you.

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