gruve.ai promises software-based profits for AI technology consulting, destroying decades-old industries

Companies of all sizes recognize the possibility that AI can change games. Despite being excited about the new technology, most of their pilot programs have not included it in production.

Gruve.ai is a startup founded by the team behind Rahi Systems rImplement the application of EAL-WORLD by using AI to provide its services.

Rahi Systems is an IT solutions company acquired by Wesco, which was acquired for $225 million in 2022.

IT services companies, including key players such as Accenture, have long been the preferred consultant for companies to implement new technology projects for companies when they do not have skilled employees within the company. However, given their work relies on humans, their expertise often has a steep price.

“The technology services industry has not been disrupted in the last 25 to 30 years,” Gruve CEO Tarun Raisoni told TechCrunch. “Artificial intelligence has really changed that dynamic.”

Gruve hopes to change the traditional IT consulting model in two key ways: First, reduce the need to hire a large number of consultants by using AI agents for repetitive tasks. Second, charge customers fees by using usage rather than hourly.

In the past, venture capital invested heavily in IT services with little interest because their dependence on humans made these businesses difficult to scale. However, by using AI agents instead of human consultants, Gruve can provide software gross margins of 70% to 80%, which is significantly higher than the profit margins of traditional technology consulting firms.

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Gruve’s innovative model and its team’s experience building Rahi Systems has helped IT’s $20 million series led by Mayfield, from Cisco Investments and other investors. New Capital brings Grove's total funding to $37.5 million.

Raisoni said his team first meets with customers to identify their AI needs and prepare their data to support AI applications before recommending and implementing AI solutions.

"You have to know your customers' business before they implement it, because their business processes are different, their work processes are different. How they serve their customers," he said.

However, once Gruve is ready to be implemented, the AI ​​agent will handle tasks such as security vulnerability detection and the transition from on-premises to cloud CRM.

Similar to traditional IT consulting firms, the firm works with select trusted technology suppliers to implement its solutions for its clients. Gruve's current partners include major companies such as Cisco, IBM's Red Hat and Google, as well as about a dozen local AI startups such as Gullean and Massitys.

However, unlike most technology consulting firms, Gruve doesn't charge customers when the solution is first implemented. Chaddha says their “on-demand services are the same, or cloud computing is provided in the same way.” For example, if Gruve has implemented AI for security, the company will only charge customers after security vulnerabilities that have been installed for AI detection and analysis.