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Sierra Raises $950M at $15B Valuation(sierra.ai)
62 points by doppp 6 hours ago | 86 comments
woeirua 2 hours ago | parent | next [-]

I don't get this for several reasons:

1. There are already apps/websites as an alternative for CSAs. Most of the time I have to call someone its because I couldn't do what I wanted through those portals, so adding an AI agent to the chain is unlikely to prevent an immediate escalation to a human.

2. How much money are you really going to save this way? CSAs aren't high salary employees. Sure you might need a bunch of them, but we've already seen that brand loyalty erodes quickly when you remove the human touch. United/Spirit airlines offer opposing views on the cut your way to profitability perspective.

3. "Pay only for good outcomes" isn't going to last.

4. Are agents good enough to even do this? Yes, the cherrypicked examples sound good, but... I just know how well coding agents really work and my only experiences with voice agents in the wild have been very poor so far.

the__alchemist an hour ago | parent | next [-]

This doesn't matter. Another comment cuts to the quick of it: "If you (like me) are hearing about this for the first time, Bret Taylor is the co-founder.".

This is funding for established tech businessmen; what the business claims to do doesn't matter beyond having "AI" in it.

dmix an hour ago | parent [-]

They seem to have no shortage of big name customers.

ej88 26 minutes ago | parent | prev | next [-]

adding some context as someone who works in this space

1. most people (average, non-tech people) reach for the phone to call in for easily solvable problems. Plus, if the agent is integrated deep enough & has tools to interact with crms, you can raise the ceiling on the types of problems it can solve.

You're trying to avoid the bad customer experience of human 1 reading off their script, then they transfer you to some other department who may or may not know how to solve your problem, and the entire interaction cost the company way more than the value created, so the company is disincentivized to help customers.

2. All the companies in this space start with the outsourced BPO market for cx (multi billion market still) but the next market is going to be in revenue generation and churn prevention at scale, i.e. how do you proactively avoid customer issues, how do you upsell and generate revenue instead of reducing cost, how do you keep customers happy?

3. I think more companies will pivot to outcome based pricing on the contrary, makes it so much more measurable than seat-based and protects margins better than usage based. Plus cx is one of the few industries with very well known metrics

4. Kind of? Most companies in this space don't use native voice models which are noticeably dumber, they use transcription + a stronger text model + TTS. The majority of customers can be handled with the latest SOTA text model and you need smart context engineering to handle the long tail of more complicated asks

ergocoder 42 minutes ago | parent | prev [-]

> How much money are you really going to save this way?

A lot of money. Managing a large group of people needs structure. It comes with tons of headaches and cost.

In terms of the investment:

It's Bret Taylor who has one of the most impressive background in tech. He can raise any amount he wants. VC bets on the person, not the business.

If Bret Taylor allowed me to invest, I would have invested too.

petra 32 minutes ago | parent [-]

If 40% of the F50 are already using this, and others too, why aren't we already seeing a huge drops in the employment numbers ?

Infinitesimus 33 minutes ago | parent | prev | next [-]

I can't speak to the business itself but they recently published a refreshing take on improving the product engineering interview experience in the age of AI https://sierra.ai/blog/the-ai-native-interview

Well worth a read even if you are generally anti-AI.

ej88 4 hours ago | parent | prev | next [-]

It's always interesting seeing how HN reacts to AI CX (as someone who works in this space). Yes, the tech savvy crowd loves to say how they always ask for a human and love old school phone trees

in reality 50-80% of callers come in with easily answerable questions because they don't know how to nav the website and prefer to ask in natural language

The vast majority of callers call in to resolve their issue, and most don't care if they are speaking to a bot because they just want their issue fixed. Agents (if implemented well) are an order of magnitude more effective at resolving issues compared to a call centre worker who is reading off a script and churn within 9 months

There's also the 2nd order effs of making CX cheap. before, there is the perverse incentive of companies trying to keep you off support because each call costs them way more than the value they get. if your cost per call drops 100x you can invest in turning a cost centre into a revenue driver (+ a better experience)

insane_dreamer 4 minutes ago | parent | next [-]

I have yet to encounter an AI agent that was able to handle my support questions adequately. I always end up having to get a human (which is becoming increasingly difficult or virtually impossible).

I'm sure AI Support Agents will be implemented better, but so far in my experience, the humans I connect to far outperform the AI agents.

tardedmeme 2 hours ago | parent | prev [-]

You disagreed with the hivemind so you got flagged.

captn3m0 5 hours ago | parent | prev | next [-]

If you (like me) are hearing about this for the first time, Bret Taylor is the co-founder.

> Bret is Co-Founder of Sierra. Most recently, he served as Co-CEO of Salesforce. Prior to Salesforce, Bret founded Quip and was CTO of Facebook. He started his career at Google, where he co-created Google Maps. Bret serves on the board of OpenAI.

bsimpson 4 hours ago | parent | next [-]

The coauthor (and presumably cofounder) is Clay Bavor. He's a Google exec who was the face of their VR efforts when he was there.

nikcub 2 hours ago | parent | prev [-]

can't believe Bret's bio doesn't mention friendfeed!

eaenki 4 hours ago | parent | prev | next [-]

I remember waiting for uber next to him in SF one night 10+ years ago. This dude must be the son of some mafia boss or some shit and have some crazy blackmail to raise billions for companies that are copies of products where he’s the 12th company doing the same thing.. never turning a profit or anything and yet raising ever more money. doesn’t make sense otherwise

ej88 4 hours ago | parent | next [-]

hes board chair of openai and is ex co-ceo of salesforce, ex cto of facebook, can get a meeting with any exec in F500...

their moat is distribution

svnt an hour ago | parent [-]

Is that really a moat though or something like a firehose of gasoline?

ej88 33 minutes ago | parent [-]

its a moat vs. other startups and it carried them to multi-B valuation

obviously the product needs to deliver and nrr needs to be good in the long run

paganel 2 hours ago | parent | prev [-]

No mafia ties needed, just your regular Security State plant. From here [1] (I'm sure there's also an official link for it, can't be bothered to check):

> OpenAI has appointed Paul M. Nakasone, a retired general of the US Army and a former head of the National Security Agency (NSA), to its board of directors, the company announced on Thursday.

and the money quote:

> “Artificial intelligence has the potential to have huge positive impacts on people’s lives, but it can only meet this potential if these innovations are securely built and deployed,“ board chair Bret Taylor said in a statement. “General Nakasone’s unparalleled experience in areas like cybersecurity will help guide OpenAI in achieving its mission of ensuring artificial general intelligence benefits all of humanity.”

[1] https://old.reddit.com/r/anime_titties/comments/1dh4wx4/form...

pmdr 5 hours ago | parent | prev | next [-]

So we're supposed to believe that removing humans from customer support will lead to better outcomes?

> Ensure you only pay for the value Sierra delivers with outcome-based pricing.

Yeah... that won't last.

_pdp_ 2 hours ago | parent | next [-]

With advances in AI you would've thought the priority would be on automating as much as possible of the non-human facing work and double-down on meaningful customer relationships - but no.

DonHopkins 4 hours ago | parent | prev | next [-]

Their secret is that they have hoards of fake AI Customers who will call into their client's AI Customer Support and respond to surveys saying they were extremely happy with the support, so the client has to pay for perfect simulated outcomes.

ej88 3 hours ago | parent [-]

ai skeptic fanfic evolves in fascinating ways every day

svnt an hour ago | parent | next [-]

This isn’t specific to AI this is just the dark arts startup valuation playbook. AI extension of gaming the metric “what is the ratio of “active” accounts to validated human daus”

Lionga 2 hours ago | parent | prev [-]

just wait until you read the ai "optimist" fanfic

ej88 2 hours ago | parent [-]

true. we'll see how many ai cos become profit printers a few years from now

htx80nerd 5 hours ago | parent | prev [-]

AI customer support is trash and everyone hates it , but it makes the Wall St numbers go up, so it's a good thing.

zamadatix 4 hours ago | parent | next [-]

AI support generally sucks but I actually wouldn't mind if everyone used it for the initial call routing portion. Beats an IVR tree or waiting for someone to just redirect your call to the real queue.

el_benhameen 4 hours ago | parent [-]

I respectfully disagree with the initial routing point. I very strongly prefer a traditional tree to “I’m your voice assistant! In a few words, tell me how I can help!”.

The tree is structured and gives me an immediate sense of how to map my task to the support offering. If I’m calling, I probably have an issue that I can’t self-serve resolve via the customer portal or whatever, so walking the tree lets me get an idea of who can help.

The “voice assistant” gives me no sense of what the system is capable of or how to take advantage of those capabilities. So I’m left guessing at phrases or functions based off of the assumption that there’s still some kind of tree-like structure that’s been abstracted away. Same outcome, more cognitive overhead, plus I usually have to shout in my best William … Shatner … impression to get it to understand me.

zamadatix 39 minutes ago | parent | next [-]

If you're calling it an "AI assistant" then it's probably not what I was talking about and I probably don't like it either. AI call routing is having an IVR tree's functionality where the call system does the work to map it to a number in the tree and nothing more.

E.g. instead of waiting for the IVR tree to be read out to find out you needed to press 4 for the shipping department since you called the AI asks "Please state the department you wish to connect to or reason for calling" and you just say "shipping" (or however much of a life story you want to give it) and it's the call system's job to figure out where in the menu that is instead of telling you the menu until you excitedly learn 4 was the magic number this time.

Calling often? Just say "shipping" right as the call starts, the same as you'd press "4" before the IVR tree is read off once you already know.

vel0city 4 hours ago | parent | prev [-]

The other side is if you already know the tree you can automate dialing the right tones to get you to where you need if you call it often enough.

ej88 4 hours ago | parent | prev | next [-]

ime its very implementation dependent

but even a simple impl to answer questions can knock out like 50% of callers who are tech-illiterate at 100x cheaper cost, it's just strictly better economics and better for those customers

tombert 4 hours ago | parent | prev [-]

I broadly agree though I have noticed that it seems to be getting a bit better. I hate how patronizing pretty much every LLM tends to be, but at least I've noticed now that the AI support is better at figuring out what it is I actually want.

That said, my life hack for these things to get escalated to a human is to just keep saying or typing curse words. Usually that triggers a "connect to human" flow. I can't promise it will always work, but I can say it has worked every time I have tried it.

linkregister 5 hours ago | parent | prev | next [-]

I think this is generally a good product because businesses that previously had zero phone support can now afford to have something. However, the hard work of actually building out the various workflows and decision trees is not automatic. Previously, a call center employee would receive abuse from a caller for being unempowered to make a decision. Instead, an LLM will perform the same role.

Ideally, businesses will escalate to an empowered human for all undefined parts of the flowchart. In practice, I truly hope it will be better than the current pre-recorded phone tree system that leads to a human following a script.

I personally only call support because a fix is not available through an organization's website.

pavlov 4 hours ago | parent | next [-]

I don't think businesses that previously had zero phone support can afford Sierra.

They seem to be a "for pricing, let's go play C-level golf" type of company.

HDThoreaun 4 hours ago | parent [-]

All of big tech other than apple has zero phone support unless you pay for enterprise support subscriptions.

montyanne 4 hours ago | parent | prev | next [-]

As a tech literate customer, my willingness to entertain AI chatbot decision trees is rock bottom. I have no patience to try to find the correct incantation to actually fix something (or the, “before I transfer you to a person, let me try to help you first”).

For myself - and admittedly maybe I’m just far out on the long tail of customers - I think these need to be treated like self driving cars, where 98% of the way there just isn’t good enough to cut it for me.

linkregister an hour ago | parent | next [-]

An AI chatbot is orders of magnitude better to get the answer "you cannot be helped" than wading through every possibility in a phone tree.

nitwit005 10 minutes ago | parent [-]

They're going to give the AI the same capabilities as the phone tree. It'll either say they can't be helped, or the user will hang up in frustration.

seemaze 4 hours ago | parent | prev [-]

This is my feeling 100%. If I'm on the phone, it's as a last resort because all the other prescribed pathways have failed.

MagicMoonlight 4 hours ago | parent | prev | next [-]

AWS can do this out of the box

throw03172019 4 hours ago | parent [-]

Strong disagree here. AWS can give you the tools to build yourself but not an out of the box all in one solution for this problem.

tootie 4 hours ago | parent | prev [-]

Last time I tried using real-time chat support for a technical issue, I spent 30 minutes explaining my problem to a human only to find out they were a sales rep whose only solution was to sell me more services. Once I said I didn't want that, they transferred me to tech support who gaslit me and left me on read long enough to make my session time out.

I think of support channels are just there to deflect customers and not really support anything. An AI bot will have infinite patience for that kind of interaction. Empowerment is never part of the equation.

caycep 2 hours ago | parent | prev | next [-]

at first I thought Sierra games was making a comeback...

lolive an hour ago | parent [-]

a new Space Quest is worth every penny!

wxw 5 hours ago | parent | prev | next [-]

Voice agents in customer support is an extremely crowded market. Seems like Sierra is taking a considerable lead.

I don't know much about their product offerings, but I was doing some speech-to-text work and came across https://research.sierra.ai/mubench/ for comparing current models. It felt fairly thoughtful, particularly in regards to coming up with better benchmarking metrics than word error rate.

TrackerFF 4 hours ago | parent | prev | next [-]

Wonder how much compute is essentially spent on conversations that end up with the human asking "Let me speak with a human"

bix6 2 hours ago | parent | prev | next [-]

Is their tech unique or do they just have the F500 relationships?

brcmthrowaway 2 hours ago | parent | prev | next [-]

This is sad. These jobs should go to someone in a poor town in the Midwest.

jjtheblunt 2 hours ago | parent | next [-]

maybe in an ironic unforeseen twist they are....to people running datacenters there?

nemomarx an hour ago | parent [-]

how many jobs does a data center provide compared to a call center? It's gotta be like 10-50 per DC I would think, for locals anyway

jvwww an hour ago | parent | prev [-]

Why should they?

loupol 2 hours ago | parent | prev | next [-]

Yet another AI company where the logo follows the butthole convergence rule [0] ?

As an aside, my favorite Sierra Entertainment logo version is probably the 1983-1993 version [1]. I think the design still holds up even today.

[0] https://velvetshark.com/ai-company-logos-that-look-like-butt...

[1] https://logos-world.net/sierra-entertainment-logo/

tombert 5 hours ago | parent | prev | next [-]

Damn, for just a moment I thought the Sierra Online company was coming back. I want a new official Quest for Glory game.

reconnecting 5 hours ago | parent | next [-]

Assume Sierra owners are too young to know what Sierra games means. I was absolutely obsessed with their logo (1) at school time.

1. https://preview.redd.it/remember-sierra-games-1979-2008-they...

https://www.youtube.com/watch?v=IMQi7olp-tw

rashkov 4 hours ago | parent | next [-]

It occurs to me just now that the logo is in fact a mountain and not a breaching Orca whale like I'd always thought

lolive an hour ago | parent [-]

isn't it the yomesite's half dome, on their logo?

foobarian 4 hours ago | parent | prev | next [-]

Wow seeing that hit me surprisingly hard. Such good times

RankingMember 2 hours ago | parent | prev | next [-]

The Psygnosis logo similarly has a special place in my memory

sedatk 2 hours ago | parent | next [-]

It's simply the best looking game company logo for me.

nubinetwork 2 hours ago | parent | prev [-]

Capstone - the pinnacle of entertainment

reconnecting 4 hours ago | parent | prev | next [-]

Probably many are ashamed to remember that the name Sierra is also associated with the Leisure Suit Larry (1) games.

1. https://en.wikipedia.org/wiki/Leisure_Suit_Larry

tombert 4 hours ago | parent [-]

Why would we be ashamed of that? The early Leisure Suit Larry games are a lot of fun; yeah the humor is crass and low-brow, but that's sort of the charm. It's meant to be silly.

reconnecting 3 hours ago | parent [-]

That's because you were probably the right age to know the answers to the age control questions, and I was at an age where I could only download them from a BBS.

tombert 3 hours ago | parent [-]

I actually didn't play the game until I was fifteen, in ~2006. I didn't know the answers, but I found out you can just hit ctrl-alt-x and skip the questions.

reconnecting 2 hours ago | parent | next [-]

Take a look at how it was in 1995. InterAction (Sierra Online) magazine [PDF copy]. Article about the Larry 6 release on page 50.

https://sierrachest.com/gfx/Publications/IA/IA_8_1/023_Inter...

flowerbreeze 2 hours ago | parent | prev [-]

I wish I had known that! Guessing and trying the answers worked too, given no internet and only having a faint idea that "age control" was not in fact part of the game itself. I learned that Bonnie and Ronnie was not in fact a thing. What is "Bonnie & Clyde"? Eh, probably some band name was my guess. It took some patience, but since it was one of 3 games I had somehow acquired (how exactly is a lost memory), I had to get past the starting quiz.

Since I also barely spoke English at the time, I got stuck in the game itself pretty soon anyway. Didn't manage to figure out how to say some things the right way. "Ken sent me" is the last thing I remember from it... and I never had any idea that the game was rather dirty until much later.

tombert 4 hours ago | parent | prev [-]

What was wrong with their logo? Or did you mean to type "obsessed"?

reconnecting 4 hours ago | parent [-]

Obsessed, correct.

One of the most beautiful game logos, going back to the early nineties.

throw0101c 4 hours ago | parent | prev | next [-]

At least I'm not the only one:

* https://en.wikipedia.org/wiki/Sierra_Entertainment

Bjorkbat 5 hours ago | parent | prev | next [-]

I was about to post a snarky comment along the lines of "Sierra? The publishers of Homeworld and Homeworld 2?"

pmdr 5 hours ago | parent | prev | next [-]

Every single word domain seems to have become some new AI company.

tombert 5 hours ago | parent | next [-]

I still get briefly confused when I see a post on here about X, only to realize they're talking about Twitter, and not the display server.

There are 26 letters and millions of words; people should choose other ones.

breppp 4 hours ago | parent | prev [-]

and not only one https://www.cyera.com/press-releases/cyera-raises-400m-to-me...

pixelpoet 5 hours ago | parent | prev | next [-]

Likewise, I was hoping for more Space Quest :(

mysterydip 3 hours ago | parent | next [-]

Not exactly the same, but SpaceVenture finally released at the end of last year: https://store.steampowered.com/app/1374960/SpaceVenture/

pixelpoet 2 hours ago | parent [-]

This looks great but wow, what a hilariously shameless knock-off! :D

ErneX 4 hours ago | parent | prev [-]

Use plunger.

cousin_it 4 hours ago | parent | prev | next [-]

That series is over, and the magical feeling of being in an open-ended fantasy world is really hard to replicate when we're not kids anymore. Loom is another game that gave me that feeling.

But there was one idea in QfG that I wish more games would use. Namely, designing three different solutions for every problem the player is facing. This idea works so well to create a sense of possibility in a game, I don't know why it got forgotten.

Eddy_Viscosity2 3 hours ago | parent | prev | next [-]

Me too, now I am suddenly wanting Space Quest 2026!

ransom1538 2 hours ago | parent | prev | next [-]

Space Quest IV: Roger?

thatmf 4 hours ago | parent | prev | next [-]

Same. A new Gabriel Knight would be fun!

tombert 3 hours ago | parent [-]

Oh yeah! For some reason I was convinced that Gabriel Knight was LucasArts but nope, just misremembered.

Gabriel Knight was awesome, I'd love a new one.

bastardoperator 4 hours ago | parent | prev | next [-]

So you want to be a hero?

Apocryphon 4 hours ago | parent | prev | next [-]

Well, if MicroProse could do it...

jcgrillo 4 hours ago | parent | prev [-]

A new Lode Runner when

EDIT: holy shit I stand corrected: https://en.wikipedia.org/wiki/Lode_Runner

hoofedear 4 hours ago | parent | prev [-]

It’s interesting that the example interaction they use on their homepage is a no-friction example that can be handled without an AI chatbot. Why not something more complex that properly demonstrates the value?