London's Gradient Labs Raises €11M for AI Customer Service

London-based Gradient Labs, an AI startup, has secured over €11 million in a Series A funding round. Redpoint Ventures led this investment, advancing its AI customer service agent for regulated industries.

The funding aims to expand Gradient Labs' technology, marketing, sales, onboarding, and customer success teams. Furthermore, the company will increase its investment in research and development. Localglobe, Puzzle Ventures, Liquid 2 Ventures, and Exceptional Capital also participated in the round.

Advancing AI for Regulated Industries

Gradient Labs addresses the complex challenges regulated businesses face in customer operations, offering advanced customer service solutions. Its procedural AI agent, Otto, handles complex customer inquiries reliably.

Founded in 2023, Gradient Labs innovates customer operations for sectors like financial services. This AI customer service agent consistently resolves up to 90% of queries with a 98% quality assurance pass rate. Consequently, it outperforms human agents and AI Agents for customer service, while reducing costs by 75%. This advanced approach differentiates it from standard chatbot solutions.

Businesses often pay high costs per customer service interaction. Gradient Labs aims to assist regulated businesses by eliminating repetitive tasks across the entire customer operations cycle. The company secured nine customers, including a major European bank, within three months post-launch, demonstrating strong market traction for its AI technology.

Dimitri Masin, Neal Lathia, and Danai Antoniou co-founded Gradient Labs. They previously worked as early employees at UK challenger bank Monzo. Their experience provides deep expertise in FinTech funding and regulated environments.