Paleo is not necessarily low carb, but you can certainly MAKE it low carb by avoiding the natural sweeteners, limiting fruit, and limiting starchy vegetables. Check out the Diabetes Warrior Blog (diabetes-warrior.net) for some inspiration.
The Paleo diet is excellent for us Type 2 diabetics. Cutting out processed food is a good start. Cutting out grains is even better. Lowering carbs even further may or may not be good for you. You will have to experiment to find out how low to go. However, try to keep your protein moderate, as if you eat too much, it will be converted to glucose which kind of defeats the object. I am not losing weight on paleo, but my doctors can't figure out how I am managing such good control of my blood sugar, and I'm not telling them!
I agree with Rosen in the point that Paleo Diet really helps in weight loss ands is also really helpful for diabetes patients. But there is a specific case in which the diet gives more result for example people with type 2 diabetes who follow paleo diet help in better control over blood sugar level. As also in Paleo diet you are restricting the carbs, which helps in restricting the sugar level.
One of the biggest examples I can give is Steve Cooksey 51-year-old guy who started following the diet since 2009 and after being diagnosed with type 2 diabetes.
Another point that Ellie mentioned regarding weight loss in Paloe diet. Paleo diet is a better choice for weight loss than other popular methods. People with diabetes there are many diabetic weight loss capsules or supplements available that can be taken by following Paleo diet. But I don’t thinks you need supplements for weight loss in paleo diet.
EDIT: Spam link removed. - Matt11
Paleo Diet is basically having diet with high protein, low carb that minimizes processed food intake to improve health and lose weight. Thus Paleo diet really helps in loss of weight. I have read many books related to paleo diet and yes paleo diet really helpful for the Diabetic people. The reason for this is that this type of diet helps in managing their sugar level.