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{"id":31946,"date":"2023-05-11T22:26:39","date_gmt":"2023-05-11T22:26:39","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/11\/everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft\/"},"modified":"2023-05-11T22:26:40","modified_gmt":"2023-05-11T22:26:40","slug":"everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/11\/everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft\/","title":{"rendered":"Everseen raises over $70M for AI tech to spot potential retail theft"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/11\/everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft\/<\/a><\/br>
\nEverseen raises over $70M for AI tech to spot potential retail theft<\/br>
\n2023-05-11 22:26:39<\/br><\/p>\n

\n

In 2007, Alan O\u2019Herlihy, who previously worked with large SAP installations as well as retail, set out to find a way to help retailers minimize \u201cshrinkage,\u201d or where a store has fewer items in stock than in its recorded inventory. He settled on computer vision as the solution to the problem, and founded a company, Everseen<\/a>, to commercialize the technology.<\/p>\n

Everseen \u2014 which uses computer vision to, among other things, attempt to prevent theft at self-checkout counters \u2014 today announced that it raised \u20ac65 million (~$71.32 million) in a Series A round led by Crosspoint Capital Partners, a previous investor in the startup. The new funds bring Ireland-based Everseen\u2019s total raised to nearly $90 million, which O\u2019Herlihy says is being put toward scaling the startup\u2019s business with a \u201ctargeted\u201d roadmap.<\/p>\n

\u201cWe\u2019re experiencing significant demand for our technology from retailers grappling with the dual impact of declining customer spending and rising operational losses, including shrinkage,\u201d O\u2019Herlihy said. \u201cThe retail industry is also facing challenges such as labor shortages and labor cost inflation, making our technology even more valuable in addressing these issues.\u201d<\/p>\n

Shrinkage in particular can be a serious hit to retailers\u2019 bottom lines, to O\u2019Herlihy\u2019s point. In 2017, stores lost an estimated 1.33% of revenues to shrinkage, totaling an estimated $47 billion, according<\/a> to the National Retail Federation.<\/p>\n

Everseen uses a combination of ceiling-mounted cameras and computer vision software to \u2014 in theory \u2014 reduce theft at the point of sale in brick-and-mortar stores. According to O\u2019Herlihy, Everseen\u2019s algorithms can detect and track objects (e.g. SKUs) of interest, analyzing how they interact and recognizing \u201cactions of interest\u201d performed by shoppers and sales associates.<\/p>\n

Beyond theft, Everseen claims to be able to \u201cknow\u201d when items on a shelf are almost out of stock and \u201cpinpoint processes needing immediate attention to help staff solve issues, improve trends and reduce variances.\u201d The platform, which processes video of hundreds of millions of products and tens of millions of customer interactions every day, can connect with a retailer\u2019s existing tools such as an order management system to provide insights and near-real time analytics.<\/p>\n

\u201cAll of these elements serve as input, allowing our solution to \u2018nudge\u2019 a customer to self-correct or instruct a store associate to engage and aid the customer in question,\u201d O\u2019Herlihy explained. \u201cOur goal is to stop and recover loss, enable the retailer to intervene, promote great customer interactions and create fluid processes while improving the overall customer experience and positively impacting the bottom line.\u201d<\/p>\n

Everseen hasn\u2019t always succeeded in this mission. Workers at Walmart, which was once a major Everseen customer, told<\/a> Wired in a 2020 that the system often misidentified innacuous behavior as theft and failed to stop actual instances of stealing.<\/p>\n

In response to the allegations, Walmart said that it made \u201csignificant improvements\u201d to its Everseen system that resulted in fewer alerts overall. But the relationship between the two companies deteriorated soon after. Everseen sued Walmart, claiming the retailer had misappropriated the Irish firm\u2019s technology and then built its own product similar to Everseen\u2019s. (Everseen and Walmart settled in December 2021.)<\/p>\n

\"Everseen\"<\/p>\n

Everseen\u2019s tech monitoring for anomalies. Image Credits:<\/strong> Everseen<\/p>\n<\/div>\n

It\u2019s tough to gauge the accuracy of any system without access to its back end. But history<\/a> has taught us that computer vision tech \u2014 especially tech designed for anti-shoplifting purposes \u2014 is susceptible to bias and other flaws.<\/p>\n

Consider an algorithm trained to spot \u201csuspicious\u201d activity from a shopper. If the dataset used to train it was imbalanced \u2014 say, contained an overwhelming amount of footage of Black shoppers stealing \u2014 it\u2019d likely flag the overrepresented shoppers more often than others.<\/p>\n

Some AI-powered anti-theft solutions, moreover, are explicitly designed to detect shoplifting track gait \u2014 patterns of limb movements \u2014 among other physical characteristics. It\u2019s a potentially problematic approach considering that disabled shoppers, among others, might have gaits that appear suspicious to an algorithm trained on video of able-bodied shoppers.<\/p>\n

But assuming for a moment that Everseen is largely bias-free, there\u2019s still the elephant in the room with every camera-based tracking system: privacy. In an email exchange, Crosspoint\u2019s Greg Clark mentioned using Everseen\u2019s tech to possibly capture purchasing intent and behavior to \u201cmarket to specific demographics,\u201d a touchy prospect, to be sure.<\/p>\n

I asked O\u2019Herlihy about how it treats customer data, including any footage it records of shoppers and store associates. He said that Everseen defers to customers on data retention policies and \u2014 for what it\u2019s worth \u2014 is \u201cfully compliant\u201d with GDPR.<\/p>\n

Whether shoppers \u2014 or associates, for that matter \u2014 implicitly trust Everseen is another question. But the potentially thorny ethical issues don\u2019t appear to be dissuading customers from signing up for the startup\u2019s services.<\/p>\n

O\u2019Herlihy claims that Everseen counts over half of the world\u2019s top 15 retailers among its customers, with deployments in over 6,000 retail stores and at more than 80,000 checkout lines.<\/p>\n

\u201cThe speed of adoption of this transformational technology increased during the pandemic as retailers looked for different ways to sell and shoppers looked for different ways to buy,\u201d O\u2019Herlihy said. \u201cIn terms of tech spend, we have seen a reallocation of budgets as the challenges for retailers are evolving with tackling shrink being viewed as a top priority in the industry \u2026 Everseen is squarely aligned with current trends.\u201d<\/span><\/p>\n

In a general sense, it\u2019s true that retailers are embracing \u2014 or at least showing an interest in \u2014 AI. A recent<\/a> KPMG survey found that 90% of retail business leaders believe their employees are prepared and have the skills for AI adoption, while 53% agree that the pandemic increased their company\u2019s pace of adoption.<\/p>\n

In the future, Everseen \u2014 no doubt under pressure from rivals like AI Guardsman<\/a> and VaakEye \u2014 plans to broaden its tech to sectors besides retail, like supply chain and manufacturing. The startup currently has around 1,000 employees across its headquarters in Cork as well as hubs in the U.S., Barcelona, India and Australia and elsewhere.<\/p>\n

\u201cStarting with retail allowed Everseen to develop both a foundation and library of computer vision AI use cases that are relevant for other adjacent industries,\u201d O\u2019Herlihy said. \u201cComputer vision solutions are currently very siloed and targeted at solving specific problems. We are seeing increased demand for our platform as customers are seeking to solve other problems across the retail store estate.\u201d<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/05\/11\/everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/11\/everseen-raises-over-70m-for-ai-tech-to-spot-potential-retail-theft\/ Everseen raises over $70M for AI tech to spot potential retail theft 2023-05-11 22:26:39 In 2007, Alan O\u2019Herlihy, who previously worked with large SAP installations as well as retail, set out to find a way to help retailers minimize \u201cshrinkage,\u201d or where a store has fewer items in stock than in its recorded inventory. 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