LivePerson Wants to Take On ChatGPT
LivePerson, a midtown-based artificial intelligence company, is making waves in the AI market. While facing strong competition from big-name players such as Microsoft and Google, LivePerson continues to soar, bringing in $514.8 million in revenue in 2022. That’s more than double the projected revenue of ChatGPT, which OpenAI is planning to launch in 2023 with a target of $200 million in revenue.
LivePerson has been developing and selling automated customer-service products since 1997, and has gained substantial growth over the past two years — by 40% — since it entered the AI market. LivePerson initially reached profitability in 2003. Today, it offers a range of products that help companies communicate directly with their customers across various messaging platforms. The company has launched a new product called Bella AI, which allows customers to create their own “assistant bots” that can be programmed to automate customer service or personal needs.
LivePerson has trained its machine learning tools, some built in-house and others brought on through acquisitions, using over two decades of conversations between companies and their customers. Its vision has always been that machines could be as empathetic as humans. “We built a foundation of innovation and customer service brick by brick to put us in the middle of this great revolution,” said Rob LoCascio, founder and CEO of LivePerson.
However, the company has faced several obstacles, including a foray into digital healthcare that hasn't succeeded yet, and a decision to pay its 2022 bonuses in cash instead of stock. LivePerson's stock peaked around $71.50 in early 2021, but then plummeted, and recent filings with the Securities and Exchange Commission showed a loss of $225.7 million in 2022.
LivePerson has 18,000 business customers, including HSBC, Virgin Media, and Burberry, according to its 2022 annual report. Midmarket and enterprise customers spent, on average, $680,000 on LivePerson’s products last year.
Going forward, the company plans to prioritize safety in its AI products, so real people can keep an eye on generative AI tools they use. LivePerson's new product gives companies the ability to keep data safe and ensure that automated responses are accurate, rather than just sounding human.
Microsoft, on the other hand, plans to test a private version of its ChatGPT, which runs on dedicated cloud servers for customers worried about data security. The private version could cost 10 times as much as the public version of ChatGPT.
Despite the competition, LivePerson continues to innovate and improve its products, positioning itself at the forefront of the AI market.
