- Companies are investing heavily in AI, with nearly 10% allocating up to $25 million this year.
- Many AI leaders face challenges in measuring the return on investment.
- Eppo, an experimentation platform, helps businesses evaluate and tailor AI models and offers A/B testing services.
- Eppo’s “contextual bandit” system automatically tests new variants of websites, apps, or AI models.
- Eppo competes with other A/B testing and AI tools from Split, Statsig, AWS, and Google Cloud.
- Eppo has quickly gained several hundred enterprise clients since its 2022 launch.
- The company recently raised $28 million in a Series B funding round, valuing it at $138 million.
- Eppo plans to expand its AI capabilities and grow its team by year-end from 45 to 65 employees.
Main AI News:
In the competitive AI industry, companies are rapidly adopting new models, with nearly 10% expected to invest up to $25 million in AI initiatives this year, according to Searce. However, despite significant spending, many AI leaders struggle to measure the return on investment, as highlighted by Gartner.
Eppo, an experimentation platform co-founded by ex-Airbnb data scientist Chetan Sharma, aims to simplify this challenge. Eppo allows businesses to evaluate and customize AI models for specific needs, offering a suite of tools for A/B testing in apps and websites. The platform differentiates itself with features like a “contextual bandit” system, which identifies and tests new variants of customers’ websites, apps, or AI models by gradually increasing their traffic.
Operating in a crowded market alongside competitors like Split, Statsig, and major players such as AWS and Google Cloud, Eppo has quickly gained traction. Since its launch in 2022, it has attracted several hundred enterprise clients, including Twitch, DraftKings, and Coinbase. Eppo’s approach streamlines decision-making, enabling companies to focus on growth by eliminating bureaucratic processes and allowing for more efficient experimentation.
Recently, Eppo secured $28 million in a Series B funding round, valuing the company at $138 million. This funding will be used to enhance its AI experimentation capabilities, expand analytics offerings, and scale its market presence. With the increasing demand for efficient growth and the challenges posed by legacy vendors, many companies are turning to Eppo to replace costly in-house solutions, especially in light of recent layoffs and organizational shifts. Eppo, based in San Francisco, plans to expand its team from 45 to 65 employees by the end of the year.
Conclusion:Â
The increasing demand for AI-driven growth and the complexities of measuring ROI are driving companies to seek out specialized experimentation platforms like Eppo. As businesses move away from expensive in-house solutions due to workforce changes, Eppo’s ability to streamline AI model evaluation and optimize decision-making positions it as a critical player in the market. This shift towards external solutions indicates a broader trend where companies prioritize agility and cost-effectiveness, potentially reshaping the competitive landscape for AI tools and services.
