“In the AI customer support chatbot space, flashy demos often outnumber companies capable of earning the trust of enterprise clients,” states Jesse Zhang, CEO and co-founder of Decagon. This bold assertion comes from a startup recently emerging from stealth mode into a crowded market.
Founded by Zhang and Ashwin Sreenivas, Decagon offers an AI-powered customer support platform designed to emulate human interaction. The solution has quickly resonated with enterprises, securing contracts with notable clients such as Eventbrite, Bilt, Webflow, Rippling, and Substack within just a year.
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How Does Decagon Work?
"Decagon empowers large enterprises and high-growth startups with highly human-like AI customer support agents,” describes Zhang. These agents engage in contextual, conversational interactions, providing both customers and CX leaders with enhanced control and visibility. By definition, “human-like” AI agents manage the full customer support lifecycle: “They reason through complex business logic, execute actions, learn from feedback, tag conversations, analyze trends, and even write new knowledge articles. We cover the entire customer support journey in the most human-like manner possible."
Decagon employs a blend of fine-tuned and third-party models to train its AI, integrating an organization's knowledge bases and historical customer conversations. This approach enables agents to deliver personalized responses and manage tasks such as processing refunds or postponing shipments. By analyzing past interactions, the AI learns about individual customers, moving beyond scripted responses. “Customer experience teams provide feedback just as they would for a new hire—an agent that is always available, responds instantly, and scales effortlessly,” explains Zhang.
Like other AI software providers, Decagon offers users insight into agent performance through conversation analysis, tagging, and the identification of anomalies, alongside suggestions to enhance their knowledge base.
Investor Support and New Funding
Investors are taking notice of Decagon's potential. The company has unveiled $35 million in funding from prominent venture capital firms and individuals, following its seed round of $5 million led by Andreessen Horowitz and a $30 million Series A led by Accel. This round included contributions from notable figures such as Elad Gil, Aaron Levie (CEO of Box), and Matt MacInnis (COO of Rippling).
“Ivan Zhou, a partner at Accel, emphasizes that, ‘Jesse, Ashwin, and the Decagon team have addressed a critical need for enterprises: identifying an AI solution that transcends the chat experience and encompasses the entire customer operations stack—from updating knowledge bases to routing insights to engineering and product teams,’” he says.
The new capital will support product development and the expansion of Decagon’s go-to-market and engineering teams.
Standing Out in a Crowded Market
While Decagon has established relationships with major companies, it competes in a landscape with other AI innovators focused on enhancing customer support. The market is shifting away from traditional chatbots toward more autonomous agents and concepts like Digital Twins. Competitors such as Sprinklr and HubSpot offer similar capabilities, while Maven AGI, a recently launched generative AI platform for enterprise support, secured $28 million in funding.
Despite the competition, Zhang positions Decagon as “a leader in the next generation of AI customer support agents.” He acknowledges the challenges of entering a highly competitive field but asserts, “Many new AI agents struggle to grasp enterprise complexity or take actionable steps to alleviate customer pain points.” He contends that Decagon is uniquely equipped to deliver the most human-like experience throughout the entire customer service interaction lifecycle—from executing tangible actions on behalf of customers to providing CX leaders with critical insights and trends regarding their knowledge base.