While drastically reducing expenses, conversational AI tools are revolutionizing customer engagement as businesses increasingly incorporate AI applications throughout their operations. With tools for creating and implementing AI-powered chatbots and conversational experiences, Gupshup, a conversational messaging platform that lets companies communicate and conduct business with clients via voice, SMS, and WhatsApp, is in high demand. Beerud Sheth, co-founder and CEO, talks with Ayanti Bera about market trends, AI adoption, and the company’s future. A few excerpts
We have made large investments to grow our Conversation Cloud during the last two years. In order to help organizations develop their own AI agents for marketing and customer service, we launched this platform last year. Nevertheless, a lot of businesses lack the know-how to create these solutions from start. We introduced pre-built AI agents earlier this year to solve this issue, enabling businesses to use AI without requiring a high level of technical expertise.
How much demand is there for your AI applications?
The demand for AI is growing worldwide. These days, every CEO needs an AI strategy, which is why demand for our products is rising quickly, particularly in places like the Middle East, Latin America, and India. Because of their heavy reliance on WhatsApp for communication, these regions are perfect for companies looking to implement AI-powered chatbots and agents. Right now, we are riding the AI adoption wave.
Do businesses still hesitate to use AI tools, or are they eager to do so?
The risk of innovation is eventually outweighed by the risk of inaction. As we move from early experimentation to wider deployment, we are at a turning point in the S-curve of AI adoption. As more companies realize that putting off integrating AI could cause them to lag behind their rivals, AI adoption is unavoidable.
Which sectors are embracing conversational AI at the fastest rate?
Leading the way are banking and retail, closely followed by travel, hospitality, healthcare, education, and even government organizations. AI is becoming more and more popular in any industry that interacts with a sizable consumer base. The only practical substitute that can scale and match the caliber of human interactions at a fraction of the price is AI-powered technology.
How affordable are these AI conversational tools for businesses?
AI solutions are far less expensive than conventional customer service strategies. As the cost of AI continues to drop, these solutions are getting both more advanced and more affordable. Businesses find AI to be an appealing investment because it lowers operating costs by at least 50% when compared to keeping a staff of human customer service agents.
Will Gupshup be raising new funds soon?
The money we raised four years ago has been used efficiently, and we continue to communicate with our investors. Although we don’t currently require new funding, we are nevertheless open to strategic alternatives. At some point, a public offering may potentially be possible, although we see an IPO as a milestone rather than the end goal. Building a solid and predictable business is still our top priority since public markets place a high value on this.
Gupshup’s valuation was drastically lowered by Fidelity Investments last year. Do you feel secure in your current assessment?
Until it is confirmed by an actual transaction, valuation is just an opinion. A willing buyer and seller agreeing on a price determines the genuine value of a business. In the meanwhile, market valuation changes are merely outside estimates that might not accurately represent the core principles of our company.
What is Gupshup’s performance for the current fiscal year?
Our topline increased by 20–30% in FY25, and the uptake of our new AI-powered goods was even quicker. The future of Gupshup and our industry is being shaped by AI. We have passed the significant investment stage and are getting close to breakeven, and we expect significant profitability in the upcoming years.
