Gradient Labs Secures Over €11 Million to Boost AI Customer Service in Regulated Industries
London-based Gradient Labs, an AI startup specializing in customer service for regulated sectors, has raised more than €11 million in a Series A funding round. The investment will help the company grow its technology, marketing, sales, onboarding, and customer success teams, while increasing its research and development efforts.
The funding round was led by Redpoint Ventures with contributions from Localglobe, Puzzle Ventures, Liquid 2 Ventures, and Exceptional Capital.
Meeting Customer Expectations in Regulated Industries
Financial services companies face a tough challenge: customers expect fast, around-the-clock support, but the industry's cautious and heavily regulated nature slows down innovation. Gradient Labs addresses this gap with its AI customer service agent, Otto, which is trained to understand company-specific products and processes.
Otto handles complex inquiries reliably and safely, automating operations from frontline support to back-office tasks. This helps businesses meet customer demands without compromising compliance or security.
Proven Expertise Behind Gradient Labs
Founded in 2023 by Dimitri Masin, Neal Lathia, and Danai Antoniou—early employees of UK challenger bank Monzo—Gradient Labs has deep experience in financial services and customer operations automation.
CEO Dimitri Masin highlights that mistakes in customer operations can be costly, especially in regulated industries. The new funding confirms strong demand for a dependable AI agent that balances safety and efficiency.
Tom Blomfield, former CEO of Monzo, emphasizes the importance of solutions like Gradient Labs for regulated businesses. He notes firsthand the improvements in safety and service quality that AI can bring to advanced UK FinTechs.
Addressing the Customer Service Strain
- Customer service interactions can cost businesses up to €11.5 each.
- 66% of customers expect responses within minutes.
- One in three customers will abandon a brand after one bad experience.
- 87% of service agents report high job-related stress.
While many AI tools help reduce workload by handling simple frontline support, these usually cover just 25% of the total customer operations costs. Regulated industries often remain underserved by current AI solutions.
How Gradient Labs Stands Out
Gradient Labs’ AI agent automates repetitive tasks across the entire customer operations cycle. According to the company’s data, Otto resolves up to 90% of queries with a 98% quality assurance pass rate.
This performance surpasses that of human agents and typical chatbots, while cutting costs by 75%. Such efficiency can relieve pressure on customer support teams and improve customer satisfaction.
Strong Market Traction and Future Growth
Just three months after launch, Gradient Labs secured nine customers, including one of Europe’s largest banks. The company continues to gain momentum, showing strong potential in a complex market.
Alex Bard, Managing Director at Redpoint Ventures, praises the founding team’s expertise and the product’s fit for regulated industries. He expresses excitement about supporting Gradient Labs as it grows.
Customer support professionals interested in AI-driven automation might explore relevant courses and training to keep up with these innovations. Resources like Complete AI Training on automation can be a helpful start.
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