Yet one more AI-powered fraud detection software provider is shedding staff. Inscribe, whose platform works to detect fraud in areas like business underwriting, tenant screening and onboarding, has cut just below 40% of its staff, which equates to dozens of employees. The news follows that of one other small round of layoffs at AI-powered plagiarism detector Turnitin, whose CEO had last 12 months touted how AI would enable the corporate to scale back its headcount.
In keeping with sources, Inscribe’s board really helpful the cuts as the present market caused the startup to miss its revenue goals for over a 12 months.
San Francisco-based Inscribe.ai confirmed the headcount reduction to TechCrunch, noting that the AI advances within the financial services industry necessitated a pivot to a brand new product and direction for the corporate.
“2023 was a 12 months of change for our customers and Inscribe,” explained Inscribe CEO and co-founder, Ronan Burke. “A lot of our customers within the fintech industry needed to contend with higher rates of interest and an unpredictable future for consumers and businesses. Moreover, the advances in AI in 2023 present certainly one of the most important opportunities for the financial services ecosystem — enabling improved customer experiences, more efficient processes and fairer decisions,” he continued.
“In Q4 of last 12 months, we set out on a brand new product technique to align with these two industry shifts, and we’ve got a big product launch planned for later this 12 months related to this, which we’re very enthusiastic about. As a part of the change in strategy, in January of this 12 months, we made the difficult decision to scale back the scale of the team by just below 40%, mostly in go-to-market and operational roles,” Burke said.
The corporate was already a comparatively small operation, with 60 (or more) employees, in line with LinkedIn and PitchBook, a mixture of engineering, product design, AI expertise, marketing, sales and more.
In January 2023, Inscribe raised $25 million in Series B funding led by Threshold Ventures with participation from Crosslink Capital, Foundry, Uncork Capital, Box co-founder Dillon Smith and Intercom co-founder Des Traynor. The round brought Inscribe’s total raise so far to $38 million. On the time, the corporate forecast it will double its then 50-person workforce over the approaching 12 to 18 months.
Sarah Perez is reachable at sarahp@techcrunch.com or @sarahperez.01 / 415.234.3994 on Signal.
