AI Fraud Detection Software Company Inscribe.ai Cuts 40% of Workforce

Title: Inscribe Reduces Workforce by Nearly 40% Amid AI Advancements and Market Challenges

Inscribe, the AI-driven fraud detection software provider, has announced a significant staff reduction, cutting nearly 40% of its workforce, which translates to dozens of employees. This decision comes on the heels of another round of layoffs at Turnitin, an AI-powered plagiarism detection platform, where the CEO previously indicated that AI advancements would lead to a decrease in headcount.

Insider sources reveal that Inscribe’s board recommended these layoffs due to ongoing market challenges that have hindered the startup from meeting its revenue targets for over a year.

The San Francisco-based company confirmed the workforce reductions, stating that as AI technology evolves within the financial services sector, it has prompted a strategic shift for Inscribe.

“2023 has brought significant changes for both our customers and Inscribe,” commented Ronan Burke, CEO and co-founder. “Our fintech clients are facing higher interest rates and an uncertain economic landscape. Additionally, the advancements in AI this year represent a tremendous opportunity for the financial industry, leading to enhanced customer interactions, streamlined processes, and more equitable decision-making,” he added.

Burke noted, “In Q4 of last year, we commenced a new product strategy in alignment with these industry transformations. We have an exciting product launch planned for later this year as part of this initiative. Unfortunately, this shift forced us to make the tough choice to reduce our team size by nearly 40%, primarily impacting our go-to-market and operational teams.”

Before the layoffs, Inscribe was a small firm, employing around 60 staff members across various disciplines, including engineering, product design, AI, marketing, and sales, according to LinkedIn and PitchBook.

In January 2023, Inscribe secured $25 million in Series B funding, led by Threshold Ventures, with contributions from Crosslink Capital, Foundry, Uncork Capital, Box co-founder Dillon Smith, and Intercom co-founder Des Traynor. This funding round increased Inscribe’s total capital raised to $38 million, with the company initially planning to double its workforce from 50 within the following 12 to 18 months.