Materia
Materia was a New York-based generative AI platform that built an AI co-pilot to automate tax, audit, and accounting workflows for public accounting firms. Acquired by Thomson Reuters in October 2024, its agentic technology now powers CoCounsel Tax and CoCounsel Audit.
- Company typePrivate
- Founded2024
- HeadquartersNew York, United States
- Headcount1–10
- GTM typeB2B
- OfferingSoftware
What Materia does
Materia was a New York-based generative AI company founded in 2022 to serve public accounting firms. Its core product was an AI co-pilot that automated tedious tax, audit, and accounting workflows, consolidated firms' internal knowledge for better decision-making, and addressed the structural US accountant shortage by increasing professional productivity. The platform used agentic AI capabilities — autonomously analyzing trial balances, drafting risk memos, and completing substantive work — combined with grounded knowledge retrieval from authoritative regulatory sources (Checkpoint, IRS, FASB, GASB, AICPA, IFRS) and a firm's own document corpus. Materia operated with 1–10 employees and launched publicly in June 2024 after raising more than $6.3 million in seed funding led by Spark Capital, with participation from Allen Institute for AI, Pathlight Ventures, Haystack, and Thomson Reuters Ventures.
In October 2024, Thomson Reuters acquired Materia and integrated its agentic technology into the CoCounsel platform, specifically CoCounsel Tax and CoCounsel Audit. Following the acquisition, Materia ceased operating as an independent entity; its capabilities are now distributed through Thomson Reuters' enterprise and inside sales channels, its Microsoft partnership, and its partner network. Revenue is generated solely through Thomson Reuters' subscription-based SaaS model for CoCounsel, with tiered offerings (including CoCounsel Tax Essentials for mid-market and small CPA firms) and adjacent modules such as Ready to Review and Ready to Advise. The combined offering couples Materia's agentic AI with Thomson Reuters' 20+ billion document corpus and 2,700+ practice experts, positioning the technology as a workflow-embedded, citation-grounded AI assistant for tax and audit professionals globally.
Materia firmographics
Firmographics- Name
- Materia
- Legal name
- Materia
- Website
- https://trymateria.ai
- Company type
- Private
- Founded year
- 2024
- Operating status
- Acquired
- Headcount range
- 1–10 employees
- Short description
- Materia was a New York-based generative AI platform that built an AI co-pilot to automate tax, audit, and accounting workflows for public accounting firms. Acquired by Thomson Reuters in October 2024, its agentic technology now powers CoCounsel Tax and CoCounsel Audit.
- Ownership category
- akta.pro rank
Materia industry classification
Industry- Product category
- Tax and Audit Automation Software
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Services-Computer Programming Services (7371)
- akta.pro primary industry
- AI Integration & Orchestration Platforms (Connectors, Workflow, iPaaS for AI) (HDAEANAI)
- akta.pro secondary industries
- Enterprise Foundation Model Integration & APIs (Connectors, Governance, Deployment) (HDAAACAO), Generative AI & LLM Solutions Services (RAG, Agents, Copilots) (BPAEAHAG), iBPMS (Intelligent BPM Suites) & Process Automation Suites (HDAEAHAG)
Keywords
Where Materia is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Materia business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations
Revenue model
- AI Platform Subscription: Following acquisition by Thomson Reuters in October 2024, Materia's technology is integrated into Thomson Reuters' AI product suite (CoCounsel Tax and CoCounsel Audit). Revenue is generated through Thomson Reuters' existing subscription-based SaaS model for tax and audit professionals.
Go-to-market motion1 record
Distribution channels4 records
Marketing channels6 records
Materia product offering
Product offeringCore offering
Materia provides a generative AI platform with agentic AI capabilities designed specifically for public accounting firms to automate tax, audit, and accounting workflows. The platform consolidates firms' internal knowledge and automates tedious tasks including trial balance analysis, risk memo drafting, document review, and routine workflow processing. Following its October 2024 acquisition by Thomson Reuters, Materia's technology has been integrated into the CoCounsel Tax and CoCounsel Audit products, providing AI-powered research, analysis, and workflow automation to tax and audit professionals.
Product overview
Thomson Reuters acquired Materia in October 2024 and integrated its agentic AI technology into the CoCounsel platform, which includes CoCounsel Tax and CoCounsel Audit as core products. These AI-powered solutions are designed for tax and audit professionals in public accounting firms, offering research, document analysis, and workflow automation capabilities. The platform is complemented by Ready to Review and Ready to Advise as additional workflow extensions. The offering consolidates firm knowledge, regulatory content (Checkpoint, IRS, FASB, GASB, AICPA, IFRS), and AI into a secure collaborative workspace.
Differentiator
Problem solved
Functional benefit
Products and services
- Materia Platform Generative AI platform with agentic AI capabilities designed specifically for public accounting firms to automate tax, audit, and accounting workflows. Consolidates firms' internal knowledge and automates tedious tasks such as trial balance analysis, risk memo drafting, and routine workflow processing. The platform was launched in June 2024 and subsequently acquired by Thomson Reuters in October 2024, with its technology integrated into the CoCounsel Tax and CoCounsel Audit products.
Companies that use Materia
Customer profileNamed customers2 records
Segments2 records
Ideal customer profiles2 records
Materia technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability7 records
Feature3 records
Materia partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Thomson ReuterscoreThomson Reuters acquired US-based AI startup Materia in October 2024 to enhance AI automation for tax, audit, and accounting services. The acquisition is part of Thomson Reuters' Build-Partner-Buy AI framework with $100+ million annual AI investment. Materia's agentic technology has been integrated into Thomson Reuters' CoCounsel Tax and CoCounsel Audit products.
Scale indicators3 records
Recent moves5 records
Expansion highlights5 records
Materia competitors and assessment
Company assessmentDirect peers
- Casetext: Legal AI platform (acquired by Thomson Reuters in 2023) that pioneered generative AI for legal professionals. Materia is essentially the tax/audit analog of Casetext within the same Thomson Reuters portfolio.
- Thomson Reuters CoCounsel: Thomson Reuters' CoCounsel (Legal, Tax, Audit) suite is now Materia's parent platform. Materia's agentic AI is integrated into CoCounsel Tax and CoCounsel Audit, making them the closest direct peer and current home for Materia's technology.
Broad incumbents
- Deloitte: Big 4 firm with internal AI/GenAI practice serving audit and tax clients (e.g., Omnia DNAV, CortexAI). Competes with vendor AI platforms for the same professional-services workflow automation opportunity.
- Intuit: Owns QuickBooks and ProConnect, providing accounting software and AI-assisted tax preparation (e.g., Intuit Assist) for tax and accounting professionals — overlapping with Materia's productivity thesis for accounting firms.
- KPMG: Big 4 accounting firm actively deploying AI (e.g., KPMG Clara, AI partnerships with Microsoft and others) for audit and tax workflows — both a potential customer and competitor to vendor platforms like Materia.
- PwC: Big 4 firm investing $1B+ in AI, including tax and audit automation tools. Represents the in-house build alternative to buying AI capabilities from platforms like Materia/CoCounsel.
- EY.ai (Ernst & Young): Big 4 firm with significant internal AI investments (including $1.4B AI investment announced). Represents the in-house AI threat that could reduce reliance on third-party platforms like CoCounsel.
- Wolters Kluwer: Major professional information services incumbent serving tax, audit, and accounting professionals with software and content. Competes with Thomson Reuters across tax and audit workflow automation.
Emerging players
- Blue J: AI-powered tax research and analysis platform for tax professionals. Direct emerging competitor in the AI-for-tax-and-audit space with similar generative AI capabilities for accounting workflows.
- Harvey: Generative AI platform purpose-built for elite law firms and professional services. Comparable vertical-AI-for-professional-services model, though focused on legal rather than tax/audit.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
Materia social profiles
Digital presenceMateria financial estimates
Financial estimateRevenue estimate
Valuation estimate
Materia leadership team
Management profileNumber of profiles
Profiles2 records
Materia funding detail
Funding detailFunding overview
Funding rounds2 records
Investors6 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Materia M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Materia
What does Materia do?
Materia provides a generative AI platform with agentic AI capabilities designed specifically for public accounting firms to automate tax, audit, and accounting workflows. The platform consolidates firms' internal knowledge and automates tedious tasks including trial balance analysis, risk memo drafting, document review, and routine workflow processing. Following its October 2024 acquisition by Thomson Reuters, Materia's technology has been integrated into the CoCounsel Tax and CoCounsel Audit products, providing AI-powered research, analysis, and workflow automation to tax and audit professionals.
Is Materia a public or private company?
Materia is a private company. It is classified as corporate owned and is currently acquired.
When was Materia founded?
Materia was founded in 2024. It employs 1 to 10 people.
Where is Materia based?
Materia is headquartered in New York, United States, in the North America region.
How does Materia make money?
One revenue line is on record: AI Platform Subscription.
Who are Materia's main competitors?
Direct peers on record are Casetext and Thomson Reuters CoCounsel. Broad incumbents are Deloitte, Intuit, KPMG, PwC, EY.ai (Ernst & Young) and Wolters Kluwer. Emerging players are Blue J and Harvey.
Does Materia have an API?
No public API is recorded for Materia.
What industry is Materia in?
Materia's product category is Tax and Audit Automation Software. Its primary akta.pro industry code is HDAEANAI, AI Integration & Orchestration Platforms (Connectors, Workflow, iPaaS for AI), with a secondary code of HDAAACAO, Enterprise Foundation Model Integration & APIs (Connectors, Governance, Deployment). Its SIC code is 7370.