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Karakuri's AI Agent GeN Sees Unprecedented Growth

Karakuri Inc., headquartered in Chuo Ward, Tokyo, has achieved remarkable success with its customer service AI agent, Generative Navigator, known as GeN. In the past year, contract numbers have surged by an astonishing 171% compared to the previous period, marking an unprecedented growth trend with eight consecutive quarters of increasing contracts. Notably, companies that have adopted GeN have seen self-resolution rates improve by approximately 1.6 times, demonstrating the efficiency and effectiveness of this innovative solution. With the rising demand for advanced customer service technologies, Karakuri is proud to announce the introduction of an outcomes-based pricing model for GeN, designed to align with the company's commitment to enhancing customer service performance.

Increasing Demand for GeN

Since its launch in September 2024, the number of companies utilizing GeN has continued to grow steadily each quarter. The cumulative contract count has reached an impressive 171% year-on-year increase, reflecting strong retention rates among active users. Remarkably, this growth spans various industries, including telecommunications, IT, SaaS, manufacturing, consumer goods, retail, e-commerce, and public sectors, signifying GeN's adaptability across multiple sectors.

Diverse Industry Adoption

The industry breakdown of GeN's adopted companies reveals a healthy distribution across sectors, with significant representation from IT and SaaS (21.6%), manufacturing and consumer goods (16.2%), retail and e-commerce (10.8%), and public agencies, education, and specialized BPO services each contributing 8.1%. This varied adoption of GeN by large enterprises illustrates its versatility in addressing customer service needs across different markets.

Self-Resolution Rate Improvement

Karakuri conducted a study comparing pre- and post-adoption self-resolution rates among businesses utilizing GeN, including education-focused B2C and IT infrastructure companies. The findings reveal a remarkable average improvement of self-resolution rates about 1.6 times higher than before. Moreover, the average number of back-and-forth exchanges per user inquiry reduced significantly to 2.8 for GeN, compared to 4.6 for traditional AI chatbots. The median escalation to human representatives also decreased by 10-15%, with cases demonstrating reductions of up to 30%.

Two key factors contribute to these performance improvements. First, GeN allows for easy integration by simply registering existing website URLs or manuals, enabling generated AI to understand and respond accurately without requiring extensive manual scenario design or data preparation typical of traditional bots. Secondly, the patented features of GeN—such as the contextual conversational bot and the hybrid of traditional and generative AI—enable AI to delve deeper into ambiguous queries to provide precise answers within one or two exchanges.

Introducing the Performance-Based Pricing Model

With the recent launch of its outcomes-based pricing plan, Karakuri aligns with global best practices in the AI customer support industry, where leading companies are increasingly adopting similar models. The domestic contact center industry faces significant structural challenges exacerbated by staffing shortages, creating a paradox where traditional pricing models based on service capacity or case volume jeopardize revenue when AI accuracy leads to reduced inquiry volumes.

The newly offered plan is designed to encourage collaboration between Karakuri and its partner companies, focusing on enhancing self-resolution rates. Notably, this plan does not mandate a total shift to a performance-based model for all clients. Karakuri will continue to offer traditional fixed monthly plans, allowing businesses to choose between retaining their existing fixed plan or integrating it with the new performance-based option for optimal deployment according to their unique business phases.

Regarding the definitions and pricing of 'results,' Karakuri customizes them to meet each company's specific requirements and values. The company's AI interactions, such as inquiries for clarification, will not be charged, focusing instead on proposing optimal performance conditions and estimates based on the final count of resolved inquiries, excluding those requiring escalation to a human agent.

CEO's Vision for the Future

Karakuri's CEO, Shimon Oda, commented on the significance of GeN: "Our AI solution aims not only to respond to inquiries but to help uncover the actual problems faced by users, guiding them towards self-resolution. The consistent observation of similar improvement trends across diverse clients emphasizes that our design philosophy is correct. The performance-based plan is our challenge to create a healthy relationship in which increased AI accuracy results in increased vendor revenue alongside our customers. We aim to expand this innovative option to more clients, contributing positively to the evolution of customer support."

Overview of GeN Service

Generative Navigator (GeN) is an advanced AI agent that utilizes existing website information as its knowledge base, allowing for installation without the need for prior FAQ or scenario development. Through a process of inquiry clarification, GeN effectively identifies users' true intentions and directs them to optimal information and procedures. Since its launch in September 2024, GeN has been adapting across a range of industries, including finance, retail, manufacturing, and government sectors, further establishing its role in transforming customer service delivery.

For more details about GeN, visit Karakuri's official website.