In a recent development, Inscribe.ai, a prominent AI fraud detection software maker, has announced a significant reduction in its workforce. The company, known for its platform that detects fraud in various areas such as business underwriting, tenant screening, and onboarding, has let go of nearly 40% of its staff, resulting in the departure of several employees.
This news comes shortly after another AI-powered plagiarism detector, Turnitin, also underwent a small round of layoffs, with its CEO previously highlighting how AI would streamline operations and reduce the need for a larger workforce.
According to reliable sources, Inscribe’s board recommended these cuts as the startup had been unable to meet its revenue goals for over a year due to the current market conditions. Inscribe, based in San Francisco, confirmed the downsizing, explaining that the advancements in AI within the financial services industry necessitated a shift in product focus and direction for the company.
Inscribe’s CEO and co-founder, Ronan Burke, shed light on the situation, stating, “2023 was a year of change for our customers and Inscribe. Many of our fintech customers had to navigate higher interest rates and an uncertain future for consumers and businesses. Additionally, the advancements in AI presented one of the biggest opportunities for the financial services ecosystem, enabling enhanced customer experiences, streamlined processes, and fairer decision-making.”
Burke further elaborated, “In Q4 of last year, we embarked on a new product strategy to align with these industry shifts, and we have an exciting large-scale product launch planned for later this year. As part of this strategic shift, we made the difficult decision in January to reduce our team size by just under 40%, primarily in go-to-market and operational roles.”
It is important to note that Inscribe was already a relatively small operation, with approximately 60 employees, as per LinkedIn and PitchBook data. The team comprised individuals with diverse expertise in engineering, product design, AI, marketing, sales, and more. Inscribe had previously raised $25 million in Series B funding in January 2023, led by Threshold Ventures, with participation from Crosslink Capital, Foundry, Uncork Capital, Box co-founder Dillon Smith, and Intercom co-founder Des Traynor. This round brought the company’s total funding to $38 million. At the time, Inscribe had projected doubling its workforce of 50 employees over the next 12 to 18 months.
While these recent changes may be challenging for Inscribe and its employees, it is essential to acknowledge the dynamic nature of the technology industry. Startups often need to adapt swiftly to market demands, and sometimes this requires making tough decisions. As Inscribe pivots its focus towards a new product strategy, the company remains optimistic about the future and the opportunities presented by the evolving AI landscape within the financial services sector.
In conclusion, Inscribe.ai’s decision to downsize its workforce reflects the company’s commitment to aligning with the changing market landscape and capitalizing on the advancements in AI technology. While this transition may be challenging, it is a strategic move aimed at ensuring long-term success and enabling Inscribe to deliver innovative solutions that enhance customer experiences and drive efficiency within the financial services industry.
