AI Recruiter Alex Secures $17M Funding
Source: techcrunch.com
AI Recruiter Alex Raises $17M
Job seekers can anticipate a surge in initial screening interviews across all sectors. While this might seem encouraging, it doesn't necessarily equate to more job openings. Recruiters, often overwhelmed by the task of identifying qualified candidates for subsequent stages, are increasingly turning to AI to handle routine screening procedures, such as verifying backgrounds, salary expectations, and availability.
Automating the Hiring Process
Alex, an AI recruiter startup, reports it is already assisting businesses with video and phone screenings. Aaron Wang, a co-founder of Alex, stated that the company's voice AI technology is capable of conducting autonomous interviews with applicants soon after they apply. According to Wang, their AI recruiter conducts thousands of interviews daily, facilitating hires at major global corporations.
While Wang, formerly of Facebook and a hedge fund quant, didn't disclose specific client names, he mentioned that they include Fortune 100 firms, financial institutions, national restaurant chains, and prominent accounting firms.
Investors Back AI Interviewers
Investors perceive the growth of AI interviewers as an inevitable trend for many organizations. This belief fueled Alex's recent $17 million Series A funding round, spearheaded by Peak XV Partners, with participation from Y Combinator, Uncorrelated Ventures, and numerous chief human resources officers (CHROs) from Fortune 500 companies, among others. This Series A follows a $3 million seed funding round, led by 1984 Ventures the previous year.
Alex isn't the only company providing AI recruiting solutions. Its rivals include emerging startups like HeyMilo, ConverzAI, and Ribbon. Mercor, an AI data labeling startup, also began as an AI recruiter. Alex aims to interview millions of job seekers to develop more comprehensive professional profiles than LinkedIn currently offers. Wang stated that a brief conversation can reveal more about a person than their LinkedIn profile. Currently, Alex is dedicated to helping recruiters focus on building relationships with qualified candidates and advising hiring managers.