Parker Conrad, the founder of Rippling, an HR startup valued at $13.5 billion, recently discussed AI on our Found podcast, sharing some intriguing insights.
During the podcast, he emphasized that users do not really want to have conversations with their HR software beyond the initial novelty of it being interactive.
Conrad criticized the trend of software companies adding superficial AI features to their products, highlighting the abundance of gimmicky AI in the tech industry.
While acknowledging the transformative potential of AI, he expressed disappointment in the current state of AI technologies, noting the prevalence of companies exaggerating their AI capabilities for marketing purposes.
He explained that many companies engage in ‘AI washing,’ aiming to inflate their valuation by associating themselves with AI, even if the actual implementation is minimal.
The increasing focus on AI is evident in the investment trends, with AI companies representing a significant portion of US deal value and witnessing substantial funding in recent years.
Nekeshia Woods, a managing partner at Parkway Venture Capital, highlighted the widespread adoption of AI across industries, predicting a future where AI automation simplifies routine tasks and enhances personalized experiences.
Conrad’s skepticism towards AI agents stems from his belief in the value of AI for processing unstructured data to gain valuable business insights, rather than for generating content.
Despite the hype surrounding AI, some industry professionals, like Woods and Conrad, are questioning the tangible returns on the massive investments in AI technologies.
As the debate on AI’s impact continues, Conrad expressed uncertainty about when the substantial investments in AI will yield significant results.
