Recalls can be a costly and damaging issue for businesses, irrespective of their size or industry. For example, as per McKinsey, companies involved in medical device manufacturing have faced recalls costing up to $600 million in recent years. Customer forgiveness is not immediate, leading to long-lasting reputational damage. Following a recall, 55% of customers are inclined to switch companies, and 21% would avoid any products from the manufacturer, based on a Harris Interactive poll.
So, what’s the solution for firms facing such challenges? Daniel First, the CEO of Axion Ray, proposes considering AI as a potential answer. Axion Ray, a company working on AI-powered software to analyze product failures by processing signals from various sources like field service reports, sensor data, and geolocation information, recently secured \(17.75 million in a Series A funding round led by Bessemer Venture Partners, along with support from RTX Ventures, Amplo, and Inspired Capital. This funding brings Axion Ray’s total raised amount to \)25 million, aimed at enhancing product capabilities, exploring new markets, and expanding the workforce.
First, who conceived the idea for Axion during his tenure at McKinsey’s AI strategy department, emphasized the necessity for refined AI solutions to prevent product issues effectively. He highlighted the importance of integrating AI solutions within products to address emerging issues collaboratively across different business units, avoiding duplication and fostering cooperation.
Axion Ray, established in 2021, aims to identify early signs of product failure and offer a unified view of issues for various organizational teams such as engineering, program management, production, field quality, and customer support. By leveraging specialized AI algorithms, Axion Ray can analyze diverse data sources to pinpoint recurring product quality issues, enabling companies to proactively manage emerging problems affecting customers.
In terms of data handling, Axion states that it retains information for the duration of an active account or as outlined in the customer’s agreement, with a commitment to promptly deleting consumer data upon request. With a team comprising experts from renowned companies like Boeing and Denso, Axion serves clients in healthcare, consumer electronics, automotive, and industrial sectors.
First highlighted the factors driving Axion Ray’s growth, including the rise of new systems introducing unforeseen issues, expanding customer-supplier collaborations, and the increasing adoption of AI for task automation in manufacturing. Kent Bennett from Bessemer Venture Partners praised Axion Ray’s leadership in automated quality problem identification, citing customer satisfaction, growth, and cost reduction as key outcomes of their AI-driven solutions.
