Ethosphere, a Seattle-based startup focused on improving retail operations through artificial intelligence, has successfully raised $2.5 million in pre-seed funding. The investment, led by Point72 Ventures, aims to harness the power of large language models to enhance in-person service provided by sales associates in brick-and-mortar stores.
Founded in 2024, Ethosphere has developed a voice-enabled platform designed to utilize data from customer interactions to generate valuable coaching insights for retail staff. The funding round also saw participation from notable investors, including AI2 Incubator, Carya Ventures, Pack VC, Hike Ventures, and J4 Ventures.
Transforming Retail Experiences with AI
The platform addresses a significant gap in applying AI technology in a manner that prioritizes human experience within the retail sector. According to Evan Smith, co-founder and chief executive of Ethosphere, “AI is bringing change to every industry, and retail is no exception, but there is a significant gap in how the technology can be applied in a useful, human-focused manner.”
Ethosphere’s approach emphasizes improving the customer purchasing experience, which can lead to increased sales and customer loyalty. When customers enjoy their shopping experience due to effective salespeople, they are more likely to return and spend more. This not only boosts profits but also enhances employee morale, as service workers often feel overlooked despite their contributions.
The modern retail landscape has increasingly focused on quantifiable outcomes, sometimes at the expense of recognizing the daily experiences of frontline workers. Ethosphere’s platform seeks to combat this trend by empowering associates to actively engage with customers rather than merely chasing metrics.
Innovative Technology for Frontline Workers
Ethosphere utilizes wearable microphones to capture interactions between customers and sales associates. These recordings are processed through large language models that transcribe the audio, providing insights into how associates are learning and developing their customer-facing skills.
The platform generates tailored feedback and coaching, offering individualized support that includes praise, data insights, and suggestions for improvement. It also aligns messaging with the specific brand voice of the retailer, ensuring consistency with corporate culture and terminology.
Management teams benefit from a comprehensive dashboard that highlights both strengths and areas needing improvement within their teams. This feature equips managers with actionable recommendations to better support their associates, including strategies to minimize bias in evaluations, celebrate high performers, and foster team cohesion.
Sri Chandrasekar, managing partner at Point72 Ventures, commented on Ethosphere’s potential impact, stating, “In an increasingly busy landscape flooded with theoretical AI, Ethosphere stood out to us with a practical, powerful application that we believe has the potential to directly impact the sales and customer experience.”
Ethosphere plans to utilize the newly secured funding to expand its program pilots with major retailers, aiming to enhance support for frontline employees and drive more effective customer interactions.