Bhavin Shah, CEO and co-founder of Moveworks, says the corporate’s goal is to develop an AI tool that can turn into a “central place where all employees can ask questions, search and get help.”
Moveworks
Moveworks has surpassed $100 million in annual recurring revenue, a milestone many hyped AI startups have yet to succeed in.
When ChatGPT launched in November 2022, the corporate’s executives were attempting to determine how they may use generative AI systems to make their businesses more efficient. Now, after what looks like a marathon of flashy demos and announcements, they’re wanting to break through the hype and introduce tools that Strictly speaking Reduce costs and ensure an actual return on investment.
Bhavin Shah, CEO and co-founder of conversational AI platform Moveworks, claims his company helps firms do exactly that. Moveworks’ AI tool routinely handles monotonous tasks like troubleshooting IT issues and submitting PTO requests, and helps employees quickly search through company documents like contracts, files, workplace policies, and calendars. Shah claims the corporate has helped firms save tens of millions of dollars by freeing up teams who can spend less time answering basic questions and work on more vital projects.
By automating the more mundane points of HR and IT jobs, the corporate is seeing revenue growth at a rate rare amongst a few of today’s most distinguished generative AI startups. Moveworks announced Tuesday that it has surpassed $100 million in annual recurring revenue (ARR), which is a calculation of revenue for the following 12 months based on current monthly subscriptions and contracts.
Moveworks’ revenue success comes at a time when big-name AI firms are amassing huge valuations while revenues remain fairly low by comparison. Major language modeler Cohere, valued at $5.5 billion, generated annual revenue of $35 million in July 2024. The information reported. Enterprise AI search tool Hebbia, valued at $700 million, posted annual revenue of $13 million in July, in accordance with Techcrunch.
Moveworks, a comparatively unknown name within the AI ​​space, is now utilized by around 5 million employees at over 350 firms corresponding to Hearst, GitHub, Toyota and Salesforce. Their employees ask the chatbot questions like “How much can I spend if I go out to dinner with the team?” and “If I have enough vacation left, can you book the week after Thanksgiving for me?” The AI ​​system, which runs in Slack or Teams, connects to external tools corresponding to Workday, ServiceNow, ADP and Microsoft, allowing employees to look for information stored in various applications.
Founded in 2016, Moveworks is valued at $2.1 billion and has over $300 million in enterprise capital from big-name backers like Lightspeed Venture Partners, Bain Capital Ventures, and Kleiner Perkins. The company began by developing a tool that routinely handled mundane tech support tasks like resetting passwords, ordering a brand new laptop, or providing access to programs or folders. Initially, Moveworks used statistical machine learning models for its chatbot and was one in all the primary firms to integrate Google’s BERT model, a transformer-based natural language processing model, a technological breakthrough that gave rise to generative AI tools like ChatGPT.
But after ChatGPT, company leaders realized their worker service chatbots seemed “old” by comparison, Shah said. Arif Janmohamed, a partner at Lightspeed Venture Partners who led Moveworks’ seed round in 2016, said the launch of ChatGPT was a “wake-up call for all companies around the world.”
The explosion of generative AI has given Moveworks latest momentum, and the corporate’s customer base has doubled previously 18 months, Shah said. The software is now based on “dozens” of enormous language models corresponding to OpenAI’s GPT-4o, Meta’s Llama 3.1, in addition to its own MoveLM model. It is trained on AI-generated “synthetic datasets” consisting of 14 million conversations between employees and chatbots, 500 million support tickets, and 400,000 web pages containing company-related information corresponding to how-to guides and often asked questions – all of which were anonymized and annotated before being ingested by an AI model.
As more firms move into the space, Moveworks now faces a growing variety of rivals, including the $4.6 billion AI search tool Glean and Writer, which is valued between $500 million and $700 million and is constructing a full-stack generative AI platform for the enterprise. Giants like Salesforce and Microsoft have also launched their very own AI agents to automate tasks like identifying leads and writing code.
Shah says it’s difficult to develop a system that understands the unique characteristics of every company. For example, the tool should give you the option to acknowledge the consonant-filled acronyms commonly utilized by defense contractors without getting confused and considering it’s someone “poking away at the keyboard.” It also needs to give you the option to reply appropriately to prompts like “Where’s Michael Jackson?” and recognize that Michael Jackson might be the name of a conference room, not an individual.
“AI companies that have not yet reached this level of scale have yet to realize that unless they tackle all these difficult, ugly, messy problems, it doesn’t work, because that’s the only way the world works,” he said.
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