Teneo AI AB (publ)

I'm going to start right now. So welcome all to the Q1 2024 results from Artificial Solutions, ticker symbol ASAI, of course. You'll find the presentation also on investors.artificial-solutions.com. And of course, some of you may or may not have been with us before and know that we go to market as teneo.ai. So if you go to artificialsolutions.com, you're actually redirected to teneo.ai, which is our product, our registered trademark, which is how we go to market. So artificial solutions is, of course, the company where you'll find the investors presentation. So investors.artificialsolutions.com. Without further ado, I'll kick off. You're going to be seeing me and Fredrik today. I, of course, have been there now for both of us have been about three years. It's a company that had a management hall over three years ago and since then we've been working hard to provide value to you shareholders and thank you all that participated in our rights issue in Q1 and we'll show you a bit of what the results that come out of our continued focus forward here so I'll go to a business update first and then we'll go to the numbers and Just a quick brief for anybody who's not been with us before ASAI in a nutshell. So it's a company that's been around for a long time. We've been in the space of natural language understanding all since 2001. This means that we have some of the foundational patents in this space. And this space has of course heated up a lot because natural language understanding is exactly what LLMs or ChatGPT or everything else that you hear about in the AI space is all about. So the generative AI space is actually generating text. So that's also first understanding and then generating text related to that. So we've been in the space for a long time. That gives us an advantage in several areas. And one of the areas is that we have the largest implementations of such technology with natural language today in live. So quite interesting background from the company. We started a journey about three years ago. I'll go in a bit further into that journey. You see some of the stats here on the side. I'd like to highlight the one at the bottom right. 40% containment is something we reached in Q1 at two of our customers, meaning that 40%, over 40%, and so obviously it's a round number, but over 40% of all phone calls that come into these companies are understood. You understand why the customer is calling. You can also help the customer and you can close the call without involving a human. So that's a very, very strong step. It's compared to anything else in the industry. It's outside side. So there's a few cases with five, maybe 10%, but those are in small volumes. This is big volume, 40% containment. So very, very interesting results coming from our customers during Q1. Of course, that's a big saving, but it's also great for customers since they're happier if you're served by the bot than by a human because it's much, much faster. I'll show you an example of that, of a contained call. But before that, just quickly, again, reiterate our story. Started out in 2021 with a new management team. We rebuilt the company to a SaaS company, divested professional services, so all our uh revenue today is related to the software not related to services that we provide so there's no projects or anything else delivered by us sold to some very large customers took them live and started prioritizing our product development and seeing what main use case was it that these customers were using these are very large customers microsoft at t swisscom telephonic etc and we saw what they wanted to do is use this technology to answer the phone understand why the customer is calling take action on it. And if they can't solve it, then route it through to a human. We call that open question. So that's a product we launched beginning of last year. And then we've got our customers onto that. Again, that 40% containment that we just spoke about. And now we've been focused on growth in those customers, partnering up with tech firms. We're part of the GCP, AWS and Microsoft Azure ecosystem, very aligned to Azure and Microsoft. We run on Azure. So when we make deals, Microsoft salespeople make money. We're now also, since this quarter, we are on the Microsoft, what's called, if you have a big agreement with Microsoft called a MAC agreement, which all the enterprises do, they can actually draw down from that agreement. So they commit a certain volume. They can draw down our technology from that without negotiating a contract with us. So that's going to help us a lot in the sales cycle. And of course, now the focus this year is new logo hunting and getting to cash flow positive on an EBITDA level. So we are positioned to cater to large scale enterprises. We have during this quarter found a way to also provide to certain niches or certain categories of small, medium business that have other benefit effects for us. The first such was this quarter was Medhelp. which of course is in the same space as one of our very large customers, NHS, which is moving quite slowly. So Medhelp hopefully, which is a very quick moving company is gonna be able to show NHS the way a bit too, apart from the fact that they themselves will benefit of course from the technology. So in all the ecosystems, as I mentioned, some very, very strong customers, AT&T Swisscom, you see some quotes here from the CEO of Swisscom, But we are also the only game in town that has millions of phone calls that are answered on the phone and understood by our technology. So very strong position. I'm going to play just a little bit of this. Some of you have heard it before. This is a traditional IVR or traditional way to call a company. 62% of enterprises today have this. I have still not met a single enterprise that does not want to replace this. However, there's many things in play when you're trying to replace this. Not the least that you need to also replace your contact center in a large likelihood. And that's something that takes time for these large companies. But let me play this very quickly first, just so you can feel the pain of, oops, I actually need to stop sharing. I need to reshare with sound. Sorry, my fault. I didn't include the sound here. I'll do that again. And there we go. And this is then again, a traditional IVR, 62% of enterprises have something like this. I'll just play a short part of it.

Please enter your social security number with 10 digits. and with hash. You will now be giving a number of options. Please listen carefully to all the options before selecting the correct one for your inquiry. For technical support and troubleshooting, press 1. Invoice questions.

And I'll stop it there. So this takes about a minute, 35 seconds. And at the end of that, you're connected to a queue, which in this particular phone call, of course, that depends on when you call, was a 45 minute wait time. I was asking for technical support because I have a broken device. Now let's listen to the future.