As US frontier AI labs race to expand their commercial offerings, the founders of two of Sweden’s most visible AI startups are pushing back against the idea that Big Tech poses an existential threat to their businesses. Speaking in Sweden this week, the CEOs of legaltech company Legora and healthtech startup Tandem Health argued that the rise of general purpose AI tools is accelerating demand for their products rather than undermining them.
The comments come amid growing debate over whether well funded AI labs such as OpenAI, Anthropic, and Google could cannibalise startups that build applications on top of large language models. Recent product launches have intensified those concerns, particularly in regulated and professional sectors such as law and healthcare.
Frontier AI sparks interest rather than competition
Max Junestrand, CEO and co founder of Stockholm based legal AI company Legora, said that the growing popularity of chatbots like Claude and ChatGPT has acted as a catalyst for adoption across the legal industry. While Anthropic recently launched a Claude plug in focused on legal tasks such as document review and compliance checks, Junestrand said the offering targets a very different user need.
According to Junestrand, general purpose AI tools function more like individual assistants, useful for quick or one off tasks, whereas Legora operates as a full scale infrastructure layer for law firms. The platform manages and connects hundreds of millions of legal documents, builds knowledge graphs between them, and continuously ingests legal data from multiple jurisdictions.
He explained that while language models have improved rapidly, they still struggle with complex legal workflows such as drafting and negotiating transaction documents. These tasks require deep contextual understanding, structured data management, and integration into firm wide systems, which horizontal AI tools are not designed to handle.
Junestrand added that model providers should be viewed as enablers rather than competitors, helping raise awareness and set expectations for what AI can deliver in professional services.
Vertical depth seen as key differentiator
Lukas Saari, CEO and co founder of Tandem Health, echoed this view from the healthcare sector. Tandem provides an AI powered clinical assistant that supports doctors during patient consultations by generating medical notes and related documentation in real time.
Saari said he does not worry about generalist AI companies launching healthcare focused features, even following the introduction of health related capabilities within ChatGPT in the United States. Instead, he sees these developments as evidence of growing demand for AI assisted healthcare tools.
According to Saari, healthcare requires an unusually deep level of vertical integration. Clinical tools must align with local medical guidelines, integrate directly into hospital systems, and comply with strict data protection and sovereignty requirements. Tandem processes health data within Europe and is designed specifically around European regulatory frameworks, which he says generalist platforms cannot easily replicate.
Growing traction across Europe
Founded in 2023, Legora has grown rapidly and now serves more than 400 law firms. The company is valued at approximately $1.8 billion and has been linked to fundraising discussions that could significantly increase its valuation, although Junestrand declined to comment on market speculation. He noted that despite starting with limited early capital, Legora has consistently won deals against better funded international competitors.
Tandem Health has also scaled quickly. The company raised $50 million in a Series A round last year and now employs around 130 people. Its largest market is the United Kingdom, where clinicians across the NHS use its platform, although Tandem remains focused exclusively on Europe for now.
Saari said future fundraising is likely if capital becomes a limiting factor, emphasising that speed and ambition are central to the company’s strategy.
A shared view on the future of AI applications
Both founders agreed that the future of AI in professional services will be shaped by specialised, industry specific platforms rather than one size fits all tools. While frontier AI labs continue to advance core models, companies like Legora and Tandem believe lasting value will be created by those who embed AI deeply into workflows, compliance structures, and real world operations.
Rather than fearing the rise of US AI giants, the Swedish founders see their progress as proof that the market is only just beginning to open.
