Intercom CEO Champions Proprietary AI, Unveils Outcome-Based Pricing for Fin AI

Eoghan McCabe, Co-founder and CEO of Intercom, has detailed the company's significant strategic shift towards developing its own customer service-focused AI models, asserting that this approach is becoming essential for software companies. During a recent appearance on "The Peel" podcast, McCabe provided an extensive account of how Intercom re-architected its operations to prioritize artificial intelligence, leading to the launch of its proprietary AI solution, Fin AI.

McCabe's candid discussion highlighted Intercom's commitment to in-house AI development, emphasizing the belief that most software companies will eventually need to build their own models to achieve tailored capabilities and maintain a competitive edge. "Intercom just announced they’ve built their own customer service-focused AI models, and Eoghan explains why most software companies will have to do the same," stated "The Peel" in its episode summary. This strategy underscores a growing trend where companies move beyond off-the-shelf AI solutions.

A key innovation introduced by Intercom is its "outcome-based pricing model" for Fin AI, marking a departure from conventional software pricing. This model aims to align the cost directly with the measurable results and value generated by the AI, addressing current challenges in the AI software market. The company also reported maintaining "best-in-class gross margins," a notable achievement given the "strong negative gross margins" observed in many other AI companies, as McCabe pointed out.

Eoghan McCabe's return to Intercom's leadership in 2022, after stepping down in 2020, has coincided with this aggressive AI push. His insights into overcoming initial skepticism regarding AI's potential in 2022 and guiding the company's transformation were central to the podcast conversation. Intercom's Fin AI, designed to enhance customer service operations, positions the company as a leader in integrating advanced AI into its core offerings.

Intercom's Fin AI is recognized as a significant player in the AI chatbot customer service market, often listed among top solutions for e-commerce businesses. It works natively with Intercom’s existing suite of tools, including its inbox, ticketing, and reporting features, providing an integrated platform for AI-enhanced customer support. This comprehensive approach aims to streamline customer communications across various channels.