By Meg Flippin, Benzinga
AI is taking off and that’s not lost on Brand Engagement Network Inc. (NASDAQ: BNAI) investors. The maker of AI assistants and avatars just closed a private placement, raising $4.95 million from a group of existing investors. That gives BEN the firepower to continue to develop its AI assistants in-house and through buys.
With its human-like AI assistants, BEN is improving businesses’ customer service, productivity and performance, going after markets with a massive workforce gap and an opportunity to transform how consumers engage with networks, providers and brands. The company’s secret sauce is a broad portfolio of conversational AI applications that drive better customer experience, increased automation and operational efficiencies. Take its virtual adherence assistant for the healthcare industry as one example. BEN says its conversational AI can improve patient experiences and medication understanding, leading to better outcomes. Or its “Remember Me” technology which syncs digital and physical interactions for an integrated, personalized customer experience.
Investor Show Of Confidence
Those advances and many others the company has made since launching its U.S. business in 2018 underpin the why of the recent deal with its existing investors. “The private placement represents a powerful vote of confidence in our strategy from our board, executive team and our existing investors,” said Chairman Chris Gaertner. “This investment will allow BEN to continue to fund its business plan as it seeks to execute on its growth and revenue strategies.”
The investment comes as the AI market is taking off, as new use cases validate this transformational technology. The AI market is forecast to soar to $1.3 trillion in the years to come, growing at a CAGR of 42% over the next decade. Rising demand for generative AI products could add about $280 billion of new software revenue, driven by specialized assistants, new infrastructure products and copilots that accelerate coding.
Not only did the investors double down on BEN, but they were willing to do so at a premium, purchasing warrants and stock at $2.50 a share – materially above where shares were trading at the time. Some of the investors agreed to provide BEN with additional capital through the exercise of their warrants if the company is unable to raise an additional $3.25 million by October 31, bringing the total investment to $8.25 million. That gives BEN a lot of capital to use to strike up partnerships and make buys.
Deep Management Bench
It's an area that Michael Zacharski, now co-CEO of BEN after the promotion of Paul Chang to the newly created role of co-CEO, will head up. Zacharski has more than 15 years of experience in the tech industry, making a name for himself for his ability to drive growth, optimize operations and spearhead M&A. “This is a pivotal time for the AI industry, and we’re excited about the prospect of partnering with organizations that complement our vision and capabilities,” said Zacharski. “I am excited to focus on furthering the company’s M&A strategy, which we believe will be core to our business strategy moving forward.”
Chang, who has been global president since May 2023, will oversee commercial operations as co-CEO, focusing on validating the market and growing the business commercially. Chang spent 18 years at IBM (NYSE: IBM) creating new markets for emerging technologies as well as several start-ups. “I am thrilled to take on the role of co-CEO,” said Chang. “As we transition into delivering value to our customers by commercializing our safe and comprehensive Gen AI Platform, BEN is well positioned both financially and technologically to execute our plans. With our unique design and architecture as well as portfolio of patents, we hope to demonstrate to the market that our AI Assistants are ready to contribute to businesses in areas that can increase CX, help to complete tasks and fuel their growth.” Rounding out the C-Suite at BEN is Chief Financial Officer Bill Willams. Williams brings over twenty years of experience in corporate finance, legal, technology and management consulting to BEN. He is an expert in driving growth, innovation and value creation for emerging growth companies.
AI is taking off, and BEN wants to be a leader in helping businesses streamline operations and enhance customer service with this transformational technology. With fresh cash in its coffers and the backing of a supportive board and investors, BEN seems like an AI story to follow.
Featured photo by Steve Johnson on Unsplash.
Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
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FAQs
It requires creativity and problem-solving skills that algorithms and robots will never have. Patients and their lifestyles vary to the degree that people differ. Diseases have the same features. Thus, no case is the same; every one of them requires the attention of human physicians.
What are the breakthroughs of AI in healthcare? ›
The most profound impact of AI in medical device design lies in its ability to create customized, patient-specific devices. Using detailed data from patient scans and medical histories, AI algorithms can craft devices that perfectly conform to individual anatomical and physiological nuances.
Will AI replace doctors and nurses? ›
Technology isn't likely to replace healthcare workers any time soon. In fact, it can actually help improve working conditions. If you're a nurse, technician, therapist or other type of clinician, then there's a good chance you'll have to work with this technology in the near future.
Why is AI bad for healthcare? ›
Risks from AI include poor outcomes from algorithms (due to bias, low quality data, lack of transparency, or usage in inappropriate contexts); leaks of personal data (due to breaches of privacy and security in data collection or in execution of AI algorithms); solutions imposed on the health workforce stretching ...
Are doctors threatened by AI? ›
Medical AI: a Co-Pilot or a Threat
Some may feel that their expertise is not to be trifled with. AI algorithms, some believe, are committing systematic theft on a mass scale using physicians' online records in the large datasets that AIs use for training.
What are three ways AI will change healthcare by 2030? ›
Three Ways AI is Revolutionizing the Healthcare Industry
- Predictive Powerhouse: From Prevention to Precision Medicine. ...
- AI-powered Assistants: Empowering Healthcare Professionals and Patients. ...
- Democratizing Healthcare: AI for All, Everywhere.
As of today, AI is primarily utilized to increase speed and accuracy in the healthcare realm. Some of the current uses of AI in this field include: Diagnosing Patients: AI algorithms analyze medical imaging data, such as X-rays, MRIs, and CT scans, to assist healthcare professionals in accurate and swift diagnoses.
What is the challenge of AI in healthcare? ›
Ethical issues, such as data privacy and bias, are among the most significant challenges we found when using AI in healthcare. Ensuring the protection of patient data and avoiding the perpetuation of social biases is crucial for the responsible and equitable implementation of AI in healthcare.
What jobs are AI proof? ›
Which Jobs Are Safest from AI and Automation?
- Health Care: Nurses, doctors, therapists, and counselors.
- Education: Teachers, instructors, and school administrators.
- Creative: Musicians, artists, writers, and journalists.
- Personal Services: Hairdressers, cosmetologists, personal trainers, and coaches.
Physicians have guarded enthusiasm for the use of augmented intelligence (AI) in health care, with many seeing it reducing documentation time and administrative burden. But they are also concerned about health care AI's impact on the patient-physician relationship and patient privacy.
So, will AI replace surgeons? It's unlikely. However, given that AI tools have the ability to improve patient safety, clinical outcomes, quality of care, and clinical documentation, according to AMA President Jesse Ehrenfeld, MD, “Physicians who use AI will replace those who don't.”
How AI is shaping healthcare? ›
Enhancing diagnostic accuracy AI algorithms can analyze medical images such as X-rays and CT scans to enhance diagnostic accuracy and assist in the early detection and diagnosis of diseases, potentially reducing the workload of medical professionals.
Is AI diagnostic better than doctors? ›
The AI system matched or surpassed the physicians' diagnostic accuracy in all six medical specialties considered. The bot outperformed physicians in 24 of 26 criteria for conversation quality, including politeness, explaining the condition and treatment, coming across as honest, and expressing care and commitment.
Will AI replace GPs? ›
It is unlikely that robots will ever replace human GPs in developed countries but technology will continue to complement the services provided by doctors. Increased availability of diagnostic and scanning tools will improve efficiency, treatment and potentially reduce the need for referrals.
Why can't AI replace radiologists? ›
AI's accuracy is still a problem
When uninterpretable images were excluded from the analysis, the AI candidate achieved an average overall accuracy of 79.5 per cent, passing two out of 10 mock FRCR exams. In comparison, the average radiologist's accuracy was 84.8 per cent, with four out of 10 mock exams passed.
Why can't AI replace dentist? ›
AI lacks the ethical judgement and concern needed for such decisions to be made, making it unfit to totally replace dentists.
Why can't AI replace psychologists? ›
The Therapist-Patient Relationship: A Barrier for AI
There is substantial evidence that a strong relationship between the patient and therapist is a critical component of effective treatment. Because it's a machine, an AI therapist can't bond with a patient the same way a human might.
Which jobs cannot be replaced by AI? ›
Now let's look at 15 jobs AI can't replace in 2024!
- Jobs Requiring Human Interaction and Empathy. ...
- Therapists and Counselors. ...
- Social Work and Community Outreach Roles. ...
- Musicians. ...
- High-Level Strategists and Analysts. ...
- Research Scientists and Engineers. ...
- Performing Arts. ...
- Judges.
Detroit, Michigan | June 10, 2024 08:45 AM Eastern Daylight Time
