Outset raises $17M to automate market research with AI interviews

Outset, a San Francisco startup using AI to conduct market research interviews, has raised $17 million in Series A funding led by 8VC to accelerate adoption among Fortune 500 enterprises. The two-year-old company promises to deliver research results that are 8 times faster, 81 percent less expensive, and provide 10 times more reach than traditional human-led research, with major customers including Nestlé, Microsoft, and WeightWatchers already replacing decades-old market research methods.

What you should know: Outset has developed the first AI-moderated research platform that conducts video interviews with participants at unprecedented scale and speed.

• AI moderators use computer-generated voice, text, images, and videos to prompt participants, who can respond through video, voice, text, or by sharing mobile and desktop screens for user experience research
• The platform automatically synthesizes results and provides instant reporting and analytics
• Traditional market research typically involves 25 in-depth interviews over 4-6 weeks, followed by 2-4 weeks of manual analysis, while Outset can conduct 250 interviews and complete projects in less than a week

The big picture: The funding reflects growing venture capital interest in AI applications that can replace traditional manual processes in a market valued at roughly $140 billion.

• “AI-native applications that directly address spend previously allocated to manual labor have been a core theme for us over the last two years,” said Jack Moshkovich, Partner at 8VC
• Enterprise attitudes toward AI tools have shifted dramatically, with CEO Aaron Cannon noting that “inertia is the biggest objection” but “this has shifted massively over the last 6 months”

How enterprises are using it: Major companies are leveraging the platform to transform their customer research strategies with measurable results.

• Nestlé uses Outset to test new product concepts across its 2,000+ brands by conducting in-depth interviews with hundreds of participants over 1-2 days, achieving the 81 percent cost reduction while dramatically accelerating research timelines
• Microsoft employs the platform to better understand user experiences with AI products, with Jess Holbrook, Head of Research at Microsoft AI, stating: “AI-augmented research is here. We partner with Outset to accelerate and scale our team’s ability to learn from our users with the help of AI agents”

Explosive growth metrics: The 14-person company has achieved remarkable traction with millions in annual recurring revenue and accelerating adoption rates.

• Revenue has doubled over the last four months with nearly 20 percent month-over-month growth
• Customer usage has increased 10-fold over the past year across more than 50 enterprise customers
• The company targets greater than 5x revenue growth over the next 12 months

Competitive landscape: Outset primarily competes with traditional research incumbents like Qualtrics and UserTesting, which founder Aaron Cannon argues remain stuck with outdated methodologies.

• “They are still relying on static surveys to gather data and their ‘AI analysis’ tools are still stuck in the world of word clouds and basic sentiment analysis,” Cannon said
• The platform includes enterprise-grade security certifications, admin permissioning, data-segregated workspaces, and interviewer customization features that large enterprises require

Platform limitations and strengths: The AI works best for research projects seeking deep learning, valuing scale and speed, and having roughly defined learning objectives.

• Excels at concept testing, usability research, market strategy studies, and longitudinal research tracking sentiment over time
• Not recommended when researchers want to develop deeper relationships with participants or when complete improvisation is desired
• “In those cases, we recommend conducting a few human-moderated interviews and then scaling up your research with AI-moderated,” Cannon explained

What they’re saying: Industry leaders suggest that AI interviewers may actually create more authentic connections than human researchers.

• “As we look to the future of AI in research, we’re often asked whether AI makes research less human and personal. At Outset, we’ve seen interviewees open up to our AI agents in ways not seen today with human researchers,” said Cannon
• “From my own professional experience, I know firsthand how difficult and time-consuming it is to truly understand your customers and their needs – nothing matters more,” Cannon added

What’s next: The $17 million will fund expansion of the go-to-market team and development of more advanced AI agents to democratize customer understanding.

• Outset aims to become “the world’s first end-to-end, AI-native enterprise research platform” and critical decision-making infrastructure for 20 percent of the Fortune 1000 within 12 months
• “Imagine anyone in an organization being able to ask an AI a simple question and watch Outset’s agents set up, run, and analyze real primary research in just a few hours,” Cannon said