WEBVTT - ICYMI: Why AI Won't Replace All the Coders

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. You're listening to Bloomberg

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<v Speaker 1>Business Week with Carol Masser and tim Stenoveek on Bloomberg Radio. Carol,

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<v Speaker 1>did you catch this story in the New York Times

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<v Speaker 1>over the weekend? I might have the computer science grads

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<v Speaker 1>they're having trouble getting jobs.

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<v Speaker 2>I am amazed at some of the stuff that's going

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<v Speaker 2>on and how quickly it's changed.

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<v Speaker 1>So like ten years ago, we were all told to

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<v Speaker 1>go learn how to code. You can get these great jobs,

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<v Speaker 1>entry level jobs, and some of the biggest tech firms

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<v Speaker 1>hundreds of thousands of dollars a year. Yeah. The Times

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<v Speaker 1>profiled this twenty five year old is a computer science

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<v Speaker 1>major at Oregon State University. He's applied to more than

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<v Speaker 1>fifty seven hundred jobs. He's received thirteen interviews and no

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<v Speaker 1>job offers. He was actually rejected from McDonald's because of

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<v Speaker 1>a lack of experience.

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<v Speaker 2>That's amazing. Yeah, So it makes me think that the

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<v Speaker 2>people who are out there that are all looking have

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<v Speaker 2>tons of experience, so those people who are just kind

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<v Speaker 2>of out don't even have a chance.

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<v Speaker 1>Yeah. I had this conversation some executives who are involved

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<v Speaker 1>in AI just in the last couple of days at

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<v Speaker 1>this Bloomberg event and they were saying, it's entry level

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<v Speaker 1>right now, that's really seeing the effect of this.

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<v Speaker 2>But the thing is, and I don't know whether it's

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<v Speaker 2>AI or some other things that are going on, if

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<v Speaker 2>you can't get that entry experience, how can you forget

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<v Speaker 2>to be experienced and kind of move up the chain. Hey,

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<v Speaker 2>we're wondering what our next guest has to say about it.

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<v Speaker 2>Katherine Costareva, she thinks about it. She is CEO and

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<v Speaker 2>maging partner at Creatio. It's a customer relationship management company

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<v Speaker 2>sells software that automates workflows using no code and AI tools.

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<v Speaker 2>Catherine joining us from Boston. Good to have you back

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<v Speaker 2>with us. How are you.

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<v Speaker 3>It's good to be here back. Hello Carol, Hello Teams.

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<v Speaker 3>So nice meeting you today again.

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<v Speaker 1>Yeah, good to see you again. You know, I was

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<v Speaker 1>thinking of you when we were preparing for the segment

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<v Speaker 1>and about the way that we've been talking to you

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<v Speaker 1>for quite a bit of time about no code and

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<v Speaker 1>low code and AI. You guys were into this really early.

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<v Speaker 1>I'm wondering if you're seeing Yeah, I'm wondering if you're

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<v Speaker 1>seeing this the way it affects your business and the

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<v Speaker 1>way it affects your clients, because if you're able to

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<v Speaker 1>do things that previously coders were able to do with

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<v Speaker 1>actually having no computer science experience, then how is it

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<v Speaker 1>played out of Creatio?

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<v Speaker 3>Right? And as you can imagine, it is a phenomenal

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<v Speaker 3>opportunity here at Creatia and for us as a company

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<v Speaker 3>because we've been talking about no code for ten years now, right,

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<v Speaker 3>So the company was founded ten years ago and every

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<v Speaker 3>time we connected with both of you, I've been talking

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<v Speaker 3>about no code and this is the future. So here

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<v Speaker 3>it is the future has come, So we can be

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<v Speaker 3>more excited, but first and foremost because of the value

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<v Speaker 3>we delivered to our clients thanks to no code and AI.

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<v Speaker 3>So basically what we do at Creatio we combine no code,

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<v Speaker 3>visual design tools, and AI together to help them build

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<v Speaker 3>applications and automate workflows much faster than ever before.

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<v Speaker 2>So talk to us about the workflows that you guys

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<v Speaker 2>are most automating for your customers. What is it that

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<v Speaker 2>they want automated?

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<v Speaker 3>Absolutely, so, Creatia as a remind is a no code

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<v Speaker 3>agentic platform. When I say agentic, meaning that we automated

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<v Speaker 3>with applications but also with agents, and we automate CRM

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<v Speaker 3>mostly customer front office workflows, marketing, sales service, but also

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<v Speaker 3>middle office operations and workflows like customer onboarding, employee onboarding,

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<v Speaker 3>loan origination, all kinds of.

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<v Speaker 2>Okay, time out, time out here, all right, CRM Customer

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<v Speaker 2>Relationship Management. I understand helping companies deal with their customers,

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<v Speaker 2>but talk to us about onboarding. Is that means about

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<v Speaker 2>customer acquisition? Kind of break it down for us so

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<v Speaker 2>that somebody listening is like, oh, okay, that's what they

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<v Speaker 2>do for customers.

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<v Speaker 3>Oh absolutely. Just think about a bank or a credit union.

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<v Speaker 3>When you open a new account, for example, at a

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<v Speaker 3>credit union or a bank, the whole onboarding starts right KEYYC,

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<v Speaker 3>know your client and all different checks and compliance checks

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<v Speaker 3>and filling in all the data about clients and then

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<v Speaker 3>communicating with your clients. So all of that is automated

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<v Speaker 3>on the workflow platform of Creatia agantic platform, partially with

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<v Speaker 3>the help of agents today and this is what helps

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<v Speaker 3>in my example, banks growth efficiency and partially with traditional applications.

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<v Speaker 2>When does it help us customers? We customers, because man,

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<v Speaker 2>I am so tired of filling out so much stuff you.

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<v Speaker 1>Just have to remember your password.

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<v Speaker 2>I well, yeah, that's another thing, but you know what

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<v Speaker 2>I mean. Yeah, I feel like I'm constantly filling out

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<v Speaker 2>wherever I go, the same stuff over and over and

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<v Speaker 2>over again.

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<v Speaker 1>I want single sign on for everything. I will say

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<v Speaker 1>one thing that's great about working here, among many things,

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<v Speaker 1>is we have the single sign on technology. And I

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<v Speaker 1>think a lot of companies do. But it's like it

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<v Speaker 1>doesn't matter if we're logging into and I'm not going

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<v Speaker 1>to name the third party services, but you know them all. Yeah,

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<v Speaker 1>we use the same single sign on tech. How are

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<v Speaker 1>we doing that everywhere? I mean, that's not really within

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<v Speaker 1>your wheelhouse, but you could give me an answer just to.

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<v Speaker 2>Make it easier. But it just feels like more complicated

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<v Speaker 2>at least from this perspective.

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<v Speaker 3>And this is a wonderful question actually, because now we

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<v Speaker 3>dive into the security and compliance and governance questions which

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<v Speaker 3>are critical for all the enterprises globally, and if we

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<v Speaker 3>take regional specificity as well, like, for example, we have

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<v Speaker 3>many many clients in Europe, and in Europe, it's going

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<v Speaker 3>to be GDPR compliance right because of all the compliance

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<v Speaker 3>and regulations and layers and layers of that and that

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<v Speaker 3>is why creation is and enterprise software exists to help

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<v Speaker 3>you simplify all these processes as much as we potentially can.

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<v Speaker 2>And GDPR, of course, is the General Data Protection Regulation.

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<v Speaker 2>That's the European Union law that's focusing on protecting personal

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<v Speaker 2>data of individuals within the EU, and many say is

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<v Speaker 2>really setting the standards for the world like that is

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<v Speaker 2>kind of becoming the gold standard because they are super

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<v Speaker 2>superocused on protecting individual data.

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<v Speaker 1>Hey, Catherine, one thing I want to talk to you about,

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<v Speaker 1>because it's been quite a while since we spoke, is

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<v Speaker 1>just where you are as a business. Last I found

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<v Speaker 1>a bit over a year ago two hundred million dollars

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<v Speaker 1>round raise from venture capitalists including Sapphire Ventures and others

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<v Speaker 1>Horizon Capital as well, that was valuing the company at

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<v Speaker 1>one point two billion dollars. How's that give us an update?

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<v Speaker 1>Do you need to raise more money or you an IPO?

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<v Speaker 3>Oh, we absolutely not raised more money because we are

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<v Speaker 3>a capital efficient company. But team, you remember when we

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<v Speaker 3>spoke class time, it was around a year ago. I

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<v Speaker 3>shared with you that we raised this fund actually to

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<v Speaker 3>invest in AI. So that's exactly what we have been doing.

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<v Speaker 3>And the revenues of the company has grown since then

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<v Speaker 3>since this capital raise by forty six percent, So forty

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<v Speaker 3>six percent capital efficient growth. So this is what we

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<v Speaker 3>leave our first.

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<v Speaker 1>So you're you're never you never have to go back

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<v Speaker 1>to venture capitalists to raise more money.

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<v Speaker 3>Oh, we are absolutely not. We actually even a year

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<v Speaker 3>ago when we had a conversation, we're not in this

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<v Speaker 3>situation then we needed this money. We just wanted to

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<v Speaker 3>clearly articulate to the market that issue is unicorn and

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<v Speaker 3>continues to grow very very fast.

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<v Speaker 1>So next stop IPO.

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<v Speaker 3>We'll see how it goes well.

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<v Speaker 1>I mean, this environment seems to be pretty good for ipoing.

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<v Speaker 1>What would a timeline be like, what would what needs

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<v Speaker 1>to happen at at the company before at IPOs?

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<v Speaker 3>We need to keep up this growth rate, and from

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<v Speaker 3>what we're seeing right now, the demand is there and

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<v Speaker 3>the technology we delivered because because again it is a

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<v Speaker 3>getic platform and we raise efficiency for our clients significantly,

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<v Speaker 3>the demand is there. So we need to deliver this

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<v Speaker 3>growth rates that we've been delivering over the last several years.

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<v Speaker 1>How long do you need to continue this growth rate

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<v Speaker 1>in order to be comfortable tapping the capital market. So

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<v Speaker 1>we're not going to be talking to you about an

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<v Speaker 1>IPO until twenty twenty seven.

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<v Speaker 3>Maybe maybe twenty twenty six. We'll see how it goes.

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<v Speaker 1>Okay, we got somewhere.

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<v Speaker 3>I love I love heathern.

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<v Speaker 2>One thing I want to ask you, who are your customers?

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<v Speaker 2>And I'm curious, based on the business flow that you

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<v Speaker 2>are seeing from them, what does it tell you about

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<v Speaker 2>the global economy? What does it tell you about the

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<v Speaker 2>US economy?

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<v Speaker 3>Okay, brilliant. So we operate in one hundred countries and

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<v Speaker 3>we mostly serve mid sized and large organizations, organizations who

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<v Speaker 3>have at least one hundred million in revenues. Why because

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<v Speaker 3>they already get into this complexity with workflows and customer

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<v Speaker 3>relationships and they have very complex infrastructures. So to make

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<v Speaker 3>their life easier and again to automate their work with

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<v Speaker 3>AI agents, that's who we target. That's who we mostly

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<v Speaker 3>work with, mid sized and large organizations globally. We have

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<v Speaker 3>clients in the Middle East, in Australia. In fact, today,

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<v Speaker 3>just today in jia Karta in Indiania, we had a

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<v Speaker 3>big no code day. Six hundred people came our clients

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<v Speaker 3>from the region, not only Indonesia, but APEC region. So yes,

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<v Speaker 3>this is a global operations that we provide to our clients.

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<v Speaker 2>So what does it tell you with that perspective advantage

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<v Speaker 2>point about what's going on in the global economy and

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<v Speaker 2>what's going on? How much of your businesses to the US.

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<v Speaker 3>Oh, that's our biggest market by far. Of course, the

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<v Speaker 3>company is headquartered and was founded here in Boston headquarters.

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<v Speaker 2>So tell me what your perspective is, just briefly, the

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<v Speaker 2>global economy in the US economy, how would you describe it?

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<v Speaker 3>Listen, with all the recent changes in the economy, it's

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<v Speaker 3>not the easiest time for our clients, I can tell

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<v Speaker 3>you that. And again this is another reason what we're

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<v Speaker 3>seeing on the market, what we're seeing in terms of

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<v Speaker 3>budgets for technology, everyone is cutting costs and everyone is

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<v Speaker 3>looking for the most efficient solutions, something that will immediately

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<v Speaker 3>provide the ROI. So time to value. Like clients today,

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<v Speaker 3>organizations today, because of the global economy, they have to

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<v Speaker 3>be very very efficient in all their operations. That is

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<v Speaker 3>why on our market, our buyers they are very very

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<v Speaker 3>kind of cautious about time to value. If we purchase

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<v Speaker 3>and when we implement your software, how fast we will

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<v Speaker 3>be getting this ROI. We will be getting the efficiency

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<v Speaker 3>from your software, and this is our primary focus in

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<v Speaker 3>all our collaboration with clients.

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<v Speaker 2>All right, we're going to leave it on that note. Catherine,

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<v Speaker 2>thank you so much. Good to check in with you.

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<v Speaker 2>Stay well, Catherine coast Reva. She is the CEO Managing

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<v Speaker 2>Partner at Creatia, joining us from Boston.