Instinct Raises $1 Billion at $10 Billion Valuation for AI Agent That Rings Restaurants on Its Own Phone
Since August 2nd, European law has mandated that systems interacting directly with people, regardless of their location, disclose their artificial intelligence (AI) nature upfront, facing fines of up to 3% of worldwide turnover. This regulation, known as Article 50 of the EU AI Act, underscores the EU's commitment to transparency and user awareness regarding AI interactions.
Instinct, a startup that has developed a personal AI agent capable of booking trips, ordering groceries, and making phone calls directly on its own phone, has recently secured $1 billion in Series C funding at a $10 billion valuation. The investment came from prominent firms including Sequoia Capital, Benchmark Capital, and Coatue.
The AI agent, unlike its European counterparts, is designed to interact with businesses directly, using its own phone and computer. It can coordinate plans with other agents and exchange files for users.
The EU AI Act: A Global Standard
Article 50 of the AI Act not only binds providers established within the EU but also those based in third countries, with a limited grace period until December 2nd. The disclosure requirement applies regardless of whether the called party is a customer, ensuring transparency in all AI interactions.
Competition and Disclosures
Meta's Muse offers similar capabilities, with a focus on booking, purchasing, and negotiating. Recently, Meta has been testing human contractors to handle Muse's calls, raising concerns about data security and sensitive information.
The EU's regulation, while pioneering, leaves a gap in disclosing the dual nature of interactions, as both AI and human agents can be involved in the same conversation, with no clear way for restaurants or customers to distinguish between them.