{"id":63735,"date":"2025-04-30T19:36:10","date_gmt":"2025-04-30T19:36:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/63735\/"},"modified":"2025-04-30T19:36:10","modified_gmt":"2025-04-30T19:36:10","slug":"gruve-ai-promises-software-like-margins-for-ai-tech-consulting-disrupting-decades-old-industry","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/63735\/","title":{"rendered":"Gruve.ai promises software-like margins for AI tech consulting, disrupting decades-old Industry"},"content":{"rendered":"

Companies of all sizes are recognizing the game-changing possibilities of AI. Despite the excitement about the new technology, most of their pilot projects don\u2019t make it into production<\/a>.<\/p>\n

Gruve.ai, a startup founded by the team behind Rahi Systems aims to help enterprises get AI solutions out of testing phase and into r<\/strong>eal-world application by using AI to deliver its services.<\/p>\n

Rahi Systems is an IT solutions company acquired by Wesco for $225 million in 2022<\/a>.\u00a0<\/p>\n

IT services firms, including major players like Accenture, have long been the go-to consultants to implement new tech projects for companies when they don\u2019t have the skilled staff in-house. However, given that their work relies on humans, their expertise often comes with a steep price tag.<\/p>\n

\u201cTechnology services industry hasn\u2019t been disrupted in the last 25 to 30 years,\u201d Tarun Raisoni, CEO of Gruve, told TechCrunch. \u201cAI truly changes that dynamic.\u201d<\/p>\n

Gruve hopes to change the traditional IT consultancy model in two key ways: first, by reducing the need to hire a large staff of consultants by using AI agents for repetitive tasks. Second, by charging clients based on usage rather than on an hourly basis.<\/p>\n

In the past, VCs were generally not interested in investing in IT services in large part because their reliance on human labor made these businesses hard to scale. But by using AI agents instead of human consultants, Gruve can deliver software-like gross margins of 70% to 80%, which is significantly higher than the margins of traditional tech consultancies, said Navin Chaddha, managing partner at Mayfield.<\/p>\n

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Gruve\u2019s innovative model and its team\u2019s experience building Rahi Systems has helped it raise a $20 million Series A round led by Mayfield, with participation from Cisco Investments and other investors. The fresh capital brings Gruve\u2019s total funding to $37.5 million.<\/p>\n

Raisoni said that his team first meets with the client to determine their AI needs and prepares their data to support AI applications before recommending and implementing AI solutions.<\/p>\n

\u201cYou must understand your customer\u2019s business before you can implement because their business processes are different, their workflows are different. How they service their clients is different,\u201d he said.<\/p>\n

But once Gruve is ready to deploy, AI agents will handle tasks such as security breach detection and the transition from on-premises to cloud CRM.<\/p>\n

Similar to traditional IT consultancies, the company partners with select trusted tech vendors to implement their solutions for clients. Gruve\u2019s current partners include large companies like Cisco, IBM\u2019s Red Hat, and Google, as well as about a dozen AI-native startups like Glean and Supervity.<\/p>\n

But unlike most tech consultancies, Gruve won\u2019t bill its clients when the solution is first implemented. Their \u201cservices are available on demand, the same way electricity is provided or the same way cloud computing is provided,\u201d Chaddha said. For example, if Gruve has implemented AI for security, the company will only charge the client upon a security breach detected and analyzed by the installed AI.<\/p>\n","protected":false},"excerpt":{"rendered":"Companies of all sizes are recognizing the game-changing possibilities of AI. Despite the excitement about the new technology,…\n","protected":false},"author":2,"featured_media":63736,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3163],"tags":[32123,323,1942,32878,32877,53,16,15],"class_list":{"0":"post-63735","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-accenture","9":"tag-ai","10":"tag-artificial-intelligence","11":"tag-it-services","12":"tag-mayfield-fund","13":"tag-technology","14":"tag-uk","15":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114428600835708182","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/63735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=63735"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/63735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/63736"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=63735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=63735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=63735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}