Artificial Intelligence: Inscribe.ai Reduces Workforce by 40% Due to Fraud Detection Software Production

Yet another AI-powered fraud detection software provider is laying off staff. Inscribe, whose platform works to detect fraud in areas like business underwriting, tenant screening, and onboarding, has cut just under 40% of its staff, which equates to dozens of employees. San Francisco-based Inscribe.ai confirmed the headcount reduction to TechCrunch, noting that the AI advances in the financial services industry necessitated a pivot to a new product and direction for the company. “2023 was a year of change for our customers and Inscribe,” explained Inscribe CEO and co-founder, Ronan Burke. At the time, the company forecast it would double its then 50-person workforce over the coming 12 to 18 months.

Inscribe, a provider of AI-powered software for detecting fraud, has announced a significant reduction in its workforce, in line with recent layoffs in the industry. The San Francisco-based company, which offers a platform for identifying fraudulent activities in business underwriting, tenant screening, and onboarding, has downsized its staff by approximately 40% – equivalent to dozens of employees.

The decision to cut staffing levels was driven by the company’s struggles to meet its revenue targets for over a year, in a market increasingly saturated with similar services. Sources say that Inscribe’s board of directors recommended the cuts as a necessary step in adapting to the changing market landscape.

In a statement to TechCrunch, CEO and co-founder Ronan Burke confirmed the news, citing the financial services industry’s rapid adoption of AI technology as a catalyst for the company’s pivot towards a new product and direction.

“2023 marks a significant period of transformation for both our clients and Inscribe,” said Burke. “The fintech sector has been hit hard by factors such as rising interest rates and consumer uncertainty, but it has also presented us with an unprecedented opportunity for growth through AI-driven advancements. These have the potential to improve customer experiences, streamline processes, and promote fairness in decision-making.”

As part of their new product strategy, Inscribe plans to launch a major product later this year, aimed at addressing these industry shifts. However, to achieve this goal, the company was forced to make the difficult decision to reduce its workforce by nearly 40% in January of this year, with the majority of the cuts occurring in go-to-market and operational roles.

Inscribe, which currently has around 60 employees according to LinkedIn and PitchBook, is a mix of engineering, product design, AI expertise, marketing, sales, and more. Just last year, the company had raised $25 million in Series B funding from investors such as Threshold Ventures, Crosslink Capital, Foundry, Uncork Capital, and well-known tech executives Dillon Smith (co-founder of Box) and Des Traynor (co-founder of Intercom).

At the time of the funding, Inscribe had projected a doubling of its team size, which then stood at 50 people, over the next 12-18 months. However, the recent changes in strategy have caused those plans to be put on hold.

For additional inquiries, Sarah Perez can be reached at sarahp@techcrunch.com or @sarahperez.01 / 415.234.3994 on Signal.

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Dylan Williams

Dylan Williams is a multimedia storyteller with a background in video production and graphic design. He has a knack for finding and sharing unique and visually striking stories from around the world.

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