Sales & customer service (2025)
Is AI replacing some humans too quickly?
Last updated: 12 May 2025
Market 101
A rare mea culpa in tech land: Sebastian Siemiatkowski, cofounder and CEO of fintech giant Klarna, last week said the company’s pursuit of customer service cost-cutting, fueled by advancements in AI, had gone too far. In an interview with Bloomberg, Siemiatkowski said the company is going on a recruitment drive so the buy-now-pay-later company’s customers will always have the option of speaking to a real person. The fintech stopped hiring for over a year as it focused on building AI capabilities.
It’s a notable moment for a sector that’s replacing humans with AI technology at a pell-mell pace. Berlin startup Parloa, which raised a $120m Series C last week and became a unicorn in the process, is one of several companies — one competitor is London’s PolyAI — capable of producing uncanny lifelike voices that can talk to customers over the phone. In what sounds like bad news for customer service folk, Parloa says its AI agents mimic natural human conversation flows and have the ability to learn and improve with every interaction they have. Customers include insurance giant Swiss Life and sports retailer Decathlon.
“The telephone is 148 years old. Voice AI is giving it a brain,” Michael Stothard, an investor at VC firm Firstminute Capital, wrote on Linkedin last week. He listed the big recent breakthroughs in AI technology: speech-to-text is near-perfect, AI voices can remember, emote, interrupt, and sound human, costs have dropped 60–90%, he estimated. “Nearly every software founder we meet is thinking about voice,” Stothard wrote.
Will we have AI salespeople? We’re not there yet, though AI is helping to automate sales admin, train newcomers, bring more accuracy to forecasts and provide leaders with insights. Last year, for example, Munich startup Voiceline raised a €2.4m seed round for a platform that automatically transcribes and analyses sales conversations. This information is then used to generate automated follow-up actions, significantly reducing the time spent on post-visit paperwork. Belgian AI-based sales assistant Donna also recently raised an early stage round. The technology will call the salesperson after they’ve had a meeting with a prospect, collect the necessary information and then automatically update the company CRM and draft a follow-up email to the prospect.
These are just two in a smattering of sales tech deals, though none as big as the investments seen on the customer service side. The good news if you’re a human: the task of replacing salespeople with AI is not going to be nearly as straightforward.
Market map
Deals
Key facts
Trends to watch
Interview with Muj Choudhury, cofounder and CEO, RocketPhone.ai
Muj Choudhury is cofounder and CEO of sales tech company RocketPhone — and he’s not shy about his ambitions. “We're on a mission to destroy Salesforce and Microsoft,” Choudhury told Sifted last week.
The London-based company uses technologies to transcribe phone conversations in real time. But this isn’t just another AI summariser: the company uses “waveform technologies to analyse the nuances of voice in tone, pitch and timbre. We can detect vulnerabilities and even sarcasm,” Choudhury says.
He explains in more detail why Salesforce and Microsoft are under threat. "They won’t exist in the form they exist today because AI will remove the need for traditional UX – something that app vendors spend billions on because at the end of the day they’re just a layer of engagement sitting on top of a database."
RocketPhone’s AI models then analyse the transcriptions and waveforms to detect key and important moments in conversation — for example buying signals, security risks, monitoring script adherence and giving coaching tips.
Choudhury has worked in AI for nearly 30 years — “I started back when it was more of an academic kind of thing,” he says — with spells at IBM and Salesforce. At some point he decided there was a “big untapped opportunity around processing conversations.”
The tech is useful for salespeople who want to discover more around what way their prospects are leaning. But the tech could also be used to decipher when someone on the other end of the line is vulnerable or has a mental health challenge. This is important information for banks, Choudhury says, because the Financial Conduct Authority — which regulates the financial services industry in the UK — keeps tabs on whether financial services firms support consumers in vulnerable circumstances.
RocketPhone is bootstrapped, raising $10m without taking a penny from VCs or institutional investors. Choudhury has no regrets about leaving a secure job at Salesforce, though he says it was a big risk with a family to support. “We’ve been on the market for less than a year and have 13 customers already. The sales gong was going off just the other day.”
Startups tracked by Sifted
Sifted take
Siemiatkowski’s recent comments on how he’s gone too far on AI proves that some work should remain in human hands. Not that this intervention will prevent customer services from being remade by AI quicker than many other industries (this is already well underway). Sales on the other hand, where eyeball-to-eyeball time is premium, won’t be nearly so fast to change.
Rising stars
Backed by Insight Partners and Peak, the startup is an omnichannel communication platform connecting businesses with their customers.
Round
Series A
Valuation
Undisclosed
Date
2021
Size
€32m
Offers a platform to streamline customer success operations.
Round
Series A
Valuation
Undisclosed
Date
2022
Size
€45m
Developed a SaaS tool for SMBs that uses ML to make data-driven business predictions.
Round
Early
Valuation
Undisclosed
Date
2022
Size
€40m
A support platform for hardware companies combining self-service and live assistance, backed by Creandum and Point Nine.
Round
Series A
Valuation
Undisclosed
Date
2024
Size
€5.5m
Startups to watch
7Learnings
€14m
€10m
-
Administrate
€9.4m
€3.5m
-
Akeron
€30m
€11m
-
All Gravy
€3.9m
€2.7m
-
Attio
€59.7m
€29.7m
-
Automaise
€5m
€5m
-
beaconsmind
€5.9m
€5.5m
-
binderr
€4m
€2m
-
BonitaSoft
-
€24.6m
-
-
Building Radar
€11.2m
€6.6m
-
Buynomics
€43m
€27.5m
-
Caplena
€6.5m
€3m
-
Capturi
€7.4m
€1.8m
-
Cognigy
€162.8m
€93m
-
ContactEngine
€15.5m
€4m
-
cuvama
€4m
€2.6m
-
Dealfront
€213.8m
€40m
-
DeskPro
€22.7m
€23.1m
-
DigitalRoute
€9.3m
€16.1m
-
DinMo
€6.6m
€5m
-
Dixa
€143.3m
€95.5m
-
EdgeTier
€7.5m
€6m
-
edrone
€7m
€4.6m
-
Fullview
€8.4m
€6.8m
-
Genesy
€5.5m
€5m
-
Gladia
€18m
€14.7m
-
Gradient Labs
€3.4m
€3.3m
-
Harmonix
€9.5m
€3.2m
-
Heyflow
€20.5m
€14.7m
-
HockeyStack
€21.1m
€24.1m
-
Hyperfox
€3.2m
€3.2m
-
Indigitall
€6.1m
€6m
-
Infinity
€17.9m
€6m
-
ITC Service
€8.1m
€8.2m
-
Kaizo
€12.8m
€6.2m
-
Kleio
€3m
€3m
-
Landbot
€8.4m
€6.5m
-
Lemni
€3.3m
€3.3m
-
Loyal Guru
€10.4m
€8m
-
MARKT-PILOT
€37.7m
€39.7m
-
Mavenoid
€42.7m
€5.5m
-
Medigo
€12.8m
€1.8m
-
Mirakl
-
€861.8m
€100m
-
MOJO-CX
€6.8m
€2.6m
-
Murfy
€10m
-
-
MySalesCoach
€3.1m
€1.3m
-
Neople
€8m
€6m
-
octonomy
€5m
€5m
-
Ometria
-
€65.6m
€9.6m
-
OneUp Sales
€5.9m
€1.8m
-
Optalitix
€7m
€2.7m
-
Parloa
€214m
€105.7m
-
Pepper
€5.1m
€2m
-
PeppercornAI
€5.9m
€3.8m
-
Piano
€258.4m
€72.7m
-
Piper
€3m
€3m
-
Plain
€13.7m
€14.5m
-
Planhat
€45.5m
€45.5m
-
Plato
€6m
€6m
-
Product fruits
€3.2m
€1.5m
-
Qapla
€6.2m
€5m
-
qiibee
€12.4m
€1.1m
-
qodek
€11.4m
€7.4m
-
Recart
€4m
€2.8m
-
Reonic
€13m
€13m
-
RocketPhone.ai
€9.7m
€10.2m
-
Salesfire
€5.8m
€3.2m
-
Sellsy
€63.6m
€55m
-
Serviceform
€4.7m
€2.5m
-
Sharebox
€6m
€4.5m
-
Shop Circle
€222.9m
€57.1m
-
Simba Sleep
€102.1m
-
-
SOLDA.AI
€3.5m
€3.7m
-
Symalean
€5m
€5m
-
Synthflow AI
€8m
€6.8m
-
Talk-A-Bot
€6.2m
€3.5m
-
Teamwork.com
€63.6m
€63.6m
-
Trengo
€34.5m
€32.7m
-
Trumpet
€5.7m
€5.9m
-
TRUST-PLACE
€4m
€4m
-
Userlane
-
€14.8m
-
-
Userled
€4.6m
€4.6m
-
Vedrai
€45m
€40m
-
Visor.ai
€4.8m
€4.4m
-
VoiceLine
€4.2m
€2.4m
-
Webio
-
€6.6m
€1.8m
-
Wegrow
€12.5m
€7m
-
Wonderflow
€20.6m
€16.5m
-
Yampa
€3m
€4.2m
-
ZAION
€11m
€11m
-
Zeliq
€14.1m
€9.2m
-
Zero Friction
€5.1m
€2.5m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Unicorn since 2020 that manages third-party marketplace and dropship business. It’s backed by Elaia Partners, 83North, Xavier Niel, Bain Capital, Permira, Motier Ventures, HSBC, BNP Paribas, JP Morgan among others.
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Platform that empowers teams to understand and influence customer behavior which recently closed a Seried D + Debt round from Updata Partners and Runway Growth Capital.
Sources
Data sources
Sifted | Proprietary data
Your feedback
How would you rate this briefing?