Sick of sitting on hold waiting for someone to provide the assistance that you called up for? Those days could soon be over after a Big Five tech company engaged artificial intelligence company Crowd Media (ASX: CM8) for their digital avatars that interact with humanised responses in real time.
Crowd Media’s newest client, which they could not name for confidentiality purposes, is flagged as one of the Big Five tech companies – essentially one of Facebook (aka Meta), Amazon, Apple, Microsoft or Google.
Under the engagement, Crowd Media will provide three digital avatars for the purpose of information delivery, where each will be able to interact with real people and be powered entirely by artificial intelligence. Making things most interesting, is that the avatars will be able to converse in multiple languages which can potentially save the client hiring multiple employees to cover different regions.
For Crowd Media CEO, Idan Schmorak, the new client is a coup for the Company and potentially a sign of global businesses realising the need to address labour shortages with digital solutions.
“Conversational AI has the potential to transform workplaces, delivering better experiences for both employees and customers. We are delighted to be working with such a forward-thinking company that has employees located around the world, and millions of customers,” said Schmorak.
“This is just one example of how progressive businesses can utilise conversational AI to automate procedures in a humanised way.”
Confirmation of the new Big Five tech client came within Crowd Media’s September quarterly update, where the AI company reported $36k in positive operating cash flow. This is not to be confused with total revenue for the Company which generated $5.37 million in FY22 across their various divisions of which the Talking Head platform presents the most potential due to rising interest in conversational AI around the world.
Given the confidential nature of the agreement, the value of the engagement was not disclosed but Schmorak believes it may be just the start of what could become a larger deal. Although the three multilingual avatars are licensed for 2 years, the subscription is expandable to significantly material figures over time with the licensing of more digital avatars in deep-tech applications.
A report released by Data Bridge Market Research earlier in the month referenced the conversational AI market valuation at USD $6.77 billion in 2021. The report forecasts that figure to reach $37.94 billion by 2029 at an annual growth rate of 24% as businesses turn to AI to replace jobs performed by unreliable labour.
While the new Big Five client is a big win for Crowd Media’s Talking Head Platform, it’s by no means their first significant client with continued success being achieved in partnership with media search company SrcFlare. Since signing a Head of Agreement with SrcFlare in May 2022, the two companies have extended their initial partnership which has generated $258k in revenue for Crowd Media in four months.
Utilising Crowd’s conversational AI capabilities, the integration of digital avatars into media search has validated the two companies strategy of reducing customer lead generation expenses to engage with new customers. Interestingly, of those five aforementioned Big Tech companies, Amazon and Facebook both appear as partners on the SrcFlare website.
Complementary to their positive operating cash flow, Crowd Media has $2.57 million in cash on hand, including the $600k of CM8 shares at $0.03 per share purchased by Crowd’s directors and associated parties as a show of confidence in the Company’s future.
Jarryd is an experienced Investment Adviser at Emerald Financial Group
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