AI will drive efficiencies but low-skilled workers will lose jobs: Gossip CEO

Gupshup is a platform that provides Artificial Intelligence (AI) powered conversational messaging services for all types of enterprises. The firm entered the coveted $1 billion club in 2021 and has witnessed substantial growth over the years.

Sheth spoke to Mint in an interview on a range of topics – from the impact of AI in our everyday lives, to the firm’s IPO plans, to the M&A pipeline.

Edited excerpts:

Chat GPT is the talk of the town these days and we understand that Gupshup has come up with chatbots like ChatGPT for enterprises. What makes the product unique?

A. A large language model (LLM) like GPT or GPT3 is not a truth model or a knowledge model. If you ask the model some information that she doesn’t know, she will still give an answer. Google got beaten up when they introduced Bard. You can ask how to make an omelet on semiconductors, it will still give an answer. This is because the way a language model works is to predict the next word. It doesn’t know whether it is right or wrong. That’s why it is called generative model.

Well, this kind of model doesn’t work for enterprises. Professional interactions are goal-oriented and require knowledge, accuracy, and truthfulness. What we do in chat is that we take these language models that have the language ability to train and deliver specific knowledge and information. Those information are usually in internal documents that companies do not place in the public domain. We take these data and combine them with models to create something that is both clear and accurate.

Although it is revolutionary to see the way Chat GPT-3 works, there has been widespread criticism of the ‘bias’ exhibited by the technology. These biases are notoriously difficult to detect when they are deeply buried in larger language models, experts say. Isn’t this a huge drawback?

Bias occurs when models are filled with material created by humans over the centuries. There are different algorithmic methods to deal with these biases – be it racial, gender, caste or nationalities. This is also a major reason why the model has been put in the public domain and it is important to think of it as a large scale testing project like the QA going on globally for AI but in the process of getting better. A little bit more fortunate when it comes to our products is that we’re building it for a niche enterprise where we can limit the interaction to a certain level and we keep getting it right.

Chat GPT has raised concerns over the jobs that may be lost once it gains momentum and creeps into forward-looking enterprises. You think this is a real threat to techies dealing with rudimentary work?

Maybe journalists too (laughs). I think this kind of technology will definitely have an impact. You can look at it in two ways. It will have a substitution effect for some while on the other hand it will also make us more productive, increasing our efficiency. A lot of developers who are into coding have become more productive, with their workload cut in half with automation. Workers who are unskilled and unable to provide value added goods may suffer as basic things will get automated. There are also opportunities. Now you need more people to train and optimize these AI models. If you regress at a higher level then there is no doubt that it is good for the society. There will be individual winners and losers. Society has to figure out how to strike a balance.

It has been in the news for some time now. When can we expect the Gossip IPO?

It’s not imminent but could happen later this year or sometime next year. I would say focus on building value and valuation will follow. Gossip is in a good position where we have a high level of revenue of over $250 million and very high growth which is over 60%. As we continue to maintain this, I am sure there will be listings whenever the markets open. As you know the companies that came out in 2021 had great headlines for a short period of time and now there are a lot of negative headlines. IPO is not a destination and I see it as an intermediate milestone.

There are clearly challenges when it comes to raising money, which is called ‘funding winter’ due to macroeconomic factors. Are you worried as industry leaders are already predicting further growth?

You are right. It is up to entrepreneurs to adjust, respond and navigate. This IPO window has been closed for almost a year and a half. It is the longest in almost a hundred years. Companies will have to be prepared if the winter lasts longer. The only way is to make sure you have enough capital that you are either profitable or moving towards profitability and be cautious about your spending.

Gossip was recently on an acquisition spree after acquiring four firms last year. Is there another purchase plan?

No special plans or announcements. Although we are always looking. M&A decisions are made on the basis of meeting the needs of the company. The acquisitions we made last year were to fill product gaps. We are expanding globally into new geographies – LATAM, ME, SEA. We are looking for someone who can help us expand rapidly in these areas.