Applied Labs, an emerging leader in AI-powered support and operations solutions, has raised $4.2 million in a seed funding round to address a pressing issue for businesses: unreliable AI solutions. Founded by Scale AI veterans Michael Woo and Soham Waychal, the company is creating highly reliable AI agents that can handle complex, critical workflows with unmatched precision.
The funding round was led by Abstract, with participation from Point72 Ventures, Outlander, and Tetra, as well as prominent angel investors including Vercel CEO Guillermo Rauch, Modal CTO Akshat Bubna, and ex-Twitter executive Ali Rowghani. This brings the company’s total funding to $5.2 million since its inception in January 2024.
Tackling AI Deployment Challenges
In a world where companies are under increasing pressure to adopt AI, Applied Labs aims to bridge the gap between ambition and execution. Traditional AI solutions often fail in reliability and lack the capability to manage complex workflows. “The bottleneck isn’t the model anymore,” said Michael Woo, CEO of Applied Labs. “The challenge is in the data, tools, and platform for teams to easily set up and perfect AI agents on their business-critical workflows.”
Applied Labs is positioned to empower businesses with AI customer support agents and AI-powered operational solutions tailored to individual knowledge bases. These agents are equipped with AI actions for both first-party and third-party integrations, offering a seamless experience. Despite the capabilities of AI, Woo emphasizes a “human-in-the-loop” approach to maintain quality and handle edge cases.
“AI allows you to scale up your best human judgment on an infinite volume of tasks,” Woo explained. “But human judgment is still necessary to get the best quality results and handle edge cases.”
The Applied Labs Vision
Founded in 2024, Applied Labs is on a mission to craft exceptional AI agents that solve real-world problems. The company believes in combining human creativity with artificial intelligence to unlock incredible possibilities, creating tools that not only solve challenges but also elevate the way businesses operate. Applied Labs partners with ambitious companies—ranging from the world’s largest enterprises to modern small businesses—to build AI support and operations agents that deliver reliability and scalability.
The team, spanning across North America and Asia, is united by their passion for innovation and a commitment to fostering a culture that encourages creativity and intelligence to thrive. “We’re not just building technology; we’re crafting experiences that enrich lives and inspire change,” the company states. Applied Labs envisions a future where AI-powered breakthroughs become the norm, redefining how businesses operate globally.
Key Differentiators and Solutions
Leveraging their expertise gained from Scale AI, Applied Labs has developed an innovative platform that combines three critical components:
- Omnichannel Interactions – AI agents span chat, email, and phone, managing 100% of customer interaction volume.
- Sophisticated AI Orchestration – Agents are capable of handling complex Q&A scenarios and intricate workflows.
- Comprehensive Evaluation Tools – Built-in auditing, testing, and monitoring systems ensure high-quality results.
This robust solution is underpinned by real-time dashboards, automated quality checks, and human oversight, ensuring enterprises can rely on Applied Labs to handle critical tasks without compromising trust.
From Scale AI to Applied Labs
Both founders bring exceptional credentials to the table. Michael Woo was an early hire at Scale AI, leading a 30-person team dedicated to scaling operational workflows. Soham Waychal, who holds five AI patents, previously led engineering at a16z-backed Canal. Together, they are focused on creating reliable, high-quality AI agents that are intuitive to use.
The importance of quality and trust resonates deeply with the team. “At Scale, when we first did AI labeling or self-driving cars, scaling a poorly thought-out AI workflow could cause serious damage,” Woo said. Applied Labs builds guardrails and employs rigorous monitoring systems to prevent these risks, ensuring AI deployment is safe and effective.
Abstract’s Backing
Abstract, a San Francisco-based venture capital firm with $1.5 billion in assets under management, led the funding round. Since its founding in 2016, Abstract has invested in numerous high-growth companies, including Solana, Rippling, and Garner Health. The firm is sector-agnostic, focusing on seed and early-stage founders and boasting a reputation for its loyalty, connections, and commitment to helping founders succeed.
“Few founders truly grasp the operational intricacies of deploying AI in mission-critical workflows. Michael’s experience managing Scale AI’s core data product brings a rare fusion of technical acumen and practical experience. Applied Labs’ commitment to pairing trust with capability is exactly what enterprises need to confidently embrace AI-powered customer support,” said Ramtin Naimi, Founder and General Partner at Abstract.
Revolutionizing Support and Operations
Applied Labs’ digital employees redefine what AI can achieve in business operations. Key features of the platform include:
- Instant Deployment and ROI – Businesses can see measurable productivity gains within days.
- Self-Learning Systems – AI agents continuously adapt and improve, capturing best practices in real-time.
- Omnichannel Engagement – The platform integrates chat, email, phone, and social channels into a unified inbox.
- Smart Escalations – Seamlessly escalates complex issues to human agents for judgment calls.
- Visual Workflow Automation – Businesses can create sophisticated AI workflows using a no-code visual canvas.
The potential impact is staggering, with AI agents capable of resolving customer inquiries in seconds, automating refunds, and managing operational workflows with enterprise-grade reliability.
Looking Ahead
Applied Labs is not just chasing efficiency; it’s pioneering a new era where AI and human intelligence work in harmony. The company’s vision is to create “digital workers” that combine machine efficiency with human judgment, unlocking new possibilities for enterprises of all sizes.
“For companies, there’s an explosion of C-Suite and boardroom interest into the question, what is our AI strategy?” Woo said. “If you’re not using AI agents like ours, you’re falling behind.”
The platform’s real-time monitoring, evaluation tools, and SOC 2 compliance make it enterprise-ready, while its modular design ensures scalability across industries. From customer support excellence to finance automation, Applied Labs is transforming how work gets done.