The recently published Artificial Intelligence market report by Hampleton Partners gets into granular detail on the trends and deals shaping this space, but the general lay of the land is perhaps best summed up in the report’s introduction:

“The recent surge in AI funding is setting the stage for a future where artificial intelligence will enhance virtually every single industry. As investment continues to flow into AI companies, they are positioned to lead groundbreaking innovations and forge a new age of economic growth and technological progress.”

Yet amid the sense of genuine exhilaration surrounding AI – how often do we get to see a proper, bona fide industrial revolution unfold in real time before our eyes? – there has also been no small degree of uncertainty about take-up of the technology, and just how deeply it will be woven into the everyday lives of individuals and businesses.

Back when most of the conversation around AI was focused on the uncanny and near-magical potential of foundation models, it was perhaps inevitable that questions would be raised about how such power could be meaningfully harnessed in a way that truly resonated with users beyond the initial shock and awe.

Last year, leading VC firm Sequoia Capital discussed “generative AI’s value problem” in an article (ironically co-written by GPT-4) which showed that, while AI tools had racked up users at record speed, user retention was a problem, with AI-first apps like ChatGPT and Lensa having a significantly lower median DAU/MAU compared to incumbents like YouTube and Instagram.

As the article observed, “The path to building enduring businesses will require fixing the retention problem and generating deep enough value for customers that they stick and become daily active users.”

We’re still early enough in the AI era that most mainstream “hype” is still focused on the foundation models underpinning the revolution, and how even the least artistically talented among us can now instantly conjure up instant images of, say, Star Wars reimagined as a 1950s B-movie. But the real, long-term impact will come from multi-modal solutions which incorporate foundation models to solve specific problems and alleviate tangible pain points. 

Let’s consider some of these pain points and the startups leveraging AI to provide solutions of real and lasting value in the workplace.

The restaurant sector has been beset by staffing challenges thanks to an array of reasons, including cost of living challenges, the negative fallout of the pandemic, macroeconomic pressures, and (in the UK) Brexit. Labour shortages have been widely reported in the US and the UK, with reduced employee numbers leading to lower team morale and increased risk of burnout.

Slang.ai is a voice AI platform specifically designed for restaurants, allowing them to field phone calls, answer customer questions and take reservations. The technology effectively eliminates the risk of calls going unanswered, freeing up human staff to do other things and saving larger restaurant organisations from having to recruit dedicated call handlers. Earlier this year, the New York startup announced a $20 million fundraise, which it is using to scale its team and develop solutions for more industry verticals.

With medical care settings under immense and unflagging pressure in countries around the world, alleviating the burden of note taking can make a significant difference to clinicians’ daily lives. Indeed, studies have shown that doctors can spend almost half their time on administrative tasks like writing and uploading notes.

Step forward DeepScribe, a San Francisco-based startup whose ambient platform accurately records patient consultations in real time and turns conversations into customisable chart notes which are automatically uploaded into the relevant Electronic Health Record fields. By removing the mental load of having to take notes, it frees the clinician up to focus more fully on the patient and substantially cuts time spent on red tape. The startup has so far raised $60 million in funding.

The past few years have been a turbulent time with regards to recruitment and staff retention – remember when that somewhat apocalyptic phrase “the great resignation” was doing the rounds? In the wake of such disruption, there has been increasing interest in leveraging AI to address recruitment challenges, and one startup seeking to make its presence felt in this space is WorkerHero.

Headquartered in Munich, WorkerHero raised $4.2 million in Series A funding earlier this year, reflecting the burgeoning usage of its recruitment platform throughout the DACH region. The platform uses AI to connect employers and potential recruits, automating and streamlining how applications are sent and slashing the time it takes for businesses to zero in on the right people for their roles. The funding windfall is being used to allow the platform to expand into new industries and facilitate more recruiting from abroad.

Whether you’re the founder of a one-person startup or a senior decision maker in a major organisation, perhaps one of the most headache-inducing aspects of business is ensuring your operations are in accordance with government legislation and industry regulations. Cutting through the noise, keeping up to speed with updated rules, and other compliance challenges comprise a significant and costly chore for enterprises large and small.

Based in New York, Norm Ai has developed AI agents to shoulder the burden of compliance tasks by automating the analysis and interpretation of reams of information, and providing actionable feedback. This year, Norm Ai secured $27 million in Series A funding to propel its quest to deal with what one backer, Bain Capital, described as “regulatory sludge”.

If you’re a founder or senior executive in the AI space and are looking to navigate your next steps, we’d love to hear from you. Get in touch with our AI sector principal Heiko Garrelfs to find out more about our expertise and the guidance we provide.