Flamingo Ai inks contract with Nationwide in first paid engagement for LIBBY
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AI and machine learning tech junior, Flamingo Ai Limited (ASX:FGO), has signed a statement of work (SoW) with US Fortune 100 company, Nationwide Mutual Insurance, for the use of its machine learning-based analytics and ‘self-organising library’ product, LIBBY.
Nationwide will use LIBBY to analyse large and complex unstructured data-sets in one of its departments, and will also be assessing LIBBY’s suitability for use across its broader business as an unsupervised machine learning based analytics tool.
While the revenue associated with the contract is regarded by the ASX small cap as not material at this time, this deployment strengthens FGO's relationship with Nationwide, a client since 2015. Since May 2016, FGO has operated under a master services agreement (MSA) with Nationwide.
In 2017, FGO successfully completed Nationwide’s highly rigorous security and data privacy audits and technology architecture reviews, resulting in FGO also achieving SOC2 Type 1 Certification — an important selling point for current and future engagements.
This newly announced contract, meanwhile, represents FGO’s first paid engagement of LIBBY. The company noted that it has received strong interest in the product in the US and Asia Pacific from several existing and potential clients across insurance, banking and investment.
At the same time, the ASX junior reported that it has received a high level of interest in its MAGGIE virtual inquiry assistant product — a quick-to-market AI solution designed to solve problems related to the high level of inefficiency many organisations experience in organising, storing, and retrieving knowledge.
“We are pleased to have secured this additional contract with Nationwide, a client we have been working with since 2015. Their continued interest and take-up of our new AI product through this SoW is particularly encouraging and bodes well for future, and of course, material deployments. It is another very positive step with a large Fortune 100 company,” FGO CEO, Dr Catriona Wallace, said of today’s contract win.
“As well, we are witnessing growing interest in the MAGGIE AI solution and we look forward to reporting on progress with trials and deployments as they are locked in.
“There is very positive momentum in our business development pipeline and we are very focused and committed to converting these opportunities into longer-term, revenue generating contracts.”
Investors seem to concur. FGO is currently up 14% on the back of today's news.
Who or what is LIBBY?
LIBBY is one of FGO’s newest products, which it created and brought to market after conducting in-market testing with companies in the financial services and telecommunications sector.
The core capability is LIBBY’s automatic structuring of unstructured data, using IP that was built entirely in-house. This application solves a key business problem – the inefficiency of enterprises to manage, store, retrieve, analyse and gain insights from their vast quantities of unstructured, conversational and non-form data.
LIBBY can ingest, analyse and automatically structure large unstructured data sets; analyse large data sets and generate previously unknown insights related to customers’ experiences; self-organise information into new categories that provide new insights; identify areas of poor customer experience, product issues and process inefficiencies; and generate reports containing commercial insights.
In October, FGO announced a contract extension with major client, CUA Health Ltd (a subsidiary of Credit Union Australia), to extend its use of FGO’s Cognitive Virtual Sales Assistant, ‘Sam’.
Based on encouraging results from a trial, CUA Health signed the extension of contract, which was inclusive of a monthly subscription fee for the Virtual Sales Assistant for health insurance.