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Goldman Sachs Insights·

How Aaru Uses Advanced AI Simulations to Predict Human Behavior

Summary

  • Aaru is a startup with a $1 billion valuation that uses advanced AI simulations to predict human behavior and population composition.
  • Founders Cam Fink and Ned Koh recognized the inevitability of AI during their senior year of high school when ChatGPT was released.
  • The company predicts decisions such as marketing clicks, subway usage, music streaming, and product purchases for global populations.
  • Aaru focuses on complex applications where traditional data collection methods like surveys are ineffective or too slow.
  • The platform is particularly valuable for industries including airlines, telecom, utilities, and insurance where critical decision moments are hard to reach.
  • Aaru's technology fuses large language models with statistical and traditional mathematical models to achieve higher accuracy than LLMs alone.
  • The company validates its models by benchmarking predictions against actual business outcomes like sales results and product performance.
  • Aaru has reduced product innovation cycles for CPG clients from nine months to eight weeks, resulting in successful product launches.
  • The system processes data at the audience level rather than the individual level and does not process personally identifiable information.
  • Data sources include publicly accessible data, purchased data from credit card and social media providers, and proprietary partnerships.
  • All client data is sandboxed, the company is SOC 2 compliant, and it does not train its core models on customer data.
  • Aaru operates in over 130 countries with the majority of customers currently based in North America.
  • The models are updated on a hyper-localized basis to account for cultural differences, safety regulations, and changing environments.
  • The company's biggest bottleneck is hiring individuals with raw capability, high learning potential, and strong collaborative skills.
  • Aaru emphasizes compounding intelligence where insights from previous simulations build value over time for clients.
  • The founders distinguish between being a trustworthy company and building models that are worthy of trust for their intended use.
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