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Outset, a San Francisco startup that uses artificial intelligence to conduct market research interviews, has raised $17 million in Series A funding to accelerate adoption of its AI-moderated research platform among Fortune 500 enterprises. The round, led by venture capital firm 8VC with participation from Future Back Ventures by Bain & Company and existing investors, brings the company’s total funding to $21 million.
The two-year-old company has developed what it calls the first AI-moderated research platform that can conduct video interviews with research participants at unprecedented scale and speed. Major customers including Nestlé, Microsoft, and WeightWatchers are using the technology to replace traditional market research methods that have remained largely unchanged for decades.
“From my own professional experience, I know firsthand how difficult and time-consuming it is to truly understand your customers and their needs – nothing matters more,” said Aaron Cannon, co-founder and CEO of Outset, in an exclusive interview with VentureBeat. “We designed AI agents to do what we couldn’t — talk to thousands of people at the speed, scale and depth that’s never been possible.”
How AI agents are disrupting decades-old market research practices
The funding comes as enterprises increasingly seek AI-powered alternatives to traditional market research, which typically requires weeks or months to complete and costs thousands of dollars per participant. Outset’s platform promises to deliver research results that are 8 times faster, 81 percent less expensive, and provide 10 times more reach than human-led research.
The technology works by having AI moderators conduct video interviews directly with research participants using synthesized voice, text, images, and videos. Participants can respond through video, voice, text, or by sharing their mobile and desktop screens for user experience research. The AI then synthesizes results automatically, providing instant reporting and analytics.
“Outset’s AI moderator prompts participants with synthesized voice, text, images, and videos. In response, participants share their videos, voices, text, and even their mobile and/or desktop screens for user experience research,” Cannon told VentureBeat.
For context, traditional market research often involves conducting 25 in-depth interviews over 4-6 weeks, followed by 2-4 weeks of manual analysis. With Outset, companies can conduct 250 interviews and complete the entire project in less than a week while requiring fewer hours from research teams.
Inside Nestlé and Microsoft’s AI-powered customer research strategies
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