Need to Know News - February 20th, 2025
In this week's Need to Know News edition:
🤖 Crocs found the perfect AI use case (and it wasn't what anyone expected)...
🤖 How a 21-year-old CEO turned AI hiring into a $2B business...
🤖 10x more computing power, minutes to think: Inside Grok 3's new approach...
And whole lot more!
xAI Unveils Grok 3: A New Milestone in AI
AI has taken AI in a bold new direction with Grok 3. The system can spend minutes solving problems. It uses 10x more computing power than other models. In early testing, it scored an impressive 1402 Elo rating against other chatbots.
The model works more like a human mind than a typical AI. It can step back from wrong answers. It tries new approaches when stuck. The company also launched Grok 3 mini for budget-conscious users. Both versions use reinforcement learning to develop better reasoning skills.
The beta release marks a clear break from current AI trends. While others push for faster responses, xAI is betting on careful thinking.
🚀 Discover the 27 ‘Plug-and-Play’ AI Prompts Every Marketer Needs
>>Access All 27 Prompts Here<<
AI Hiring Startup Mercor Hits $2B Valuation After Explosive Growth
Mercor has seen stunning growth in the AI hiring space. The startup's value jumped from $250 million to $2 billion in just five months after raising $100 million in Series B funding. The company has already processed 300,000 candidates and conducted 100,000 interviews.
The platform's success comes from its AI models that predict job performance better than human recruiters. Mercor is growing fast, with 51% monthly revenue growth over six months and a $75 million revenue run rate. 21 year old CEO Brendan Foody sees hiring becoming fully automated soon. He believes AI will make hiring not just cheaper but far more effective than human-led processes
Rabbit Finally Demos Real AI Agent Tech, But Not on Its R1 Device
Rabbit has unveiled its promised AI agent technology, but with a twist. The demo shows an AI controlling Android apps on a tablet - not on the company's R1 device that launched last year. The system can handle tasks like finding videos, creating shopping lists, and even learning to play games.
The AI shows promise but isn't perfect. It makes odd choices, like sending WhatsApp messages one line at a time. This demo builds on the company's earlier LAM Playground project for web automation. Engineers control everything through a laptop interface, not the R1 hardware.
RingCentral Launches AI Receptionist to Automate Front Desk Operations
RingCentral has created a new AI tool that acts like a front desk receptionist. Called AIR, it answers phone calls, transfers them to the right department, and can handle basic questions about things like business hours. It can even send text messages to confirm appointments.
The system is already showing results. One company found it could handle half of all incoming calls on its own. Another company got 60% more potential customers because calls were answered faster. The AI comes with useful features like call recordings and different voice options to choose from.
Zoom and Google Also Add AI Features to Make Meetings More Productive
Google Meet and Zoom have rolled out new AI tools to tackle the aftermath of video meetings. Google's system now suggests next steps based on meeting transcripts. Meanwhile Zoom launched Workplace Automation to handle post-meeting tasks automatically.
Zoom's tool can create meeting summaries and share them with teams. It works across Zoom Chat, Team Chat, and Docs. It also integrates with Microsoft and Google apps. Both features are included at no extra cost for enterprise subscribers.
Gartner analyst JP Gownder sees this as a crucial development. He notes that AI in meetings helps ensure follow-through on decisions, making video calls more valuable for businesses.
Tripadvisor's AI Partnership with Perplexity Shows Early Success in Customer Acquisition
Tripadvisor is seeing promising results from its new AI-driven customer acquisition strategy. The company's January partnership with Perplexity AI is bringing in high-intent customers. And they're more likely to book than typical traffic sources.
The deal goes beyond hotels, with plans to add experiences and restaurants to Perplexity's offerings. Tripadvisor also partnered with OpenAI's Operator and hints at more AI partnerships coming soon. The company sees AI as a new marketing channel alongside Google Search and social media.
This push into AI comes as Viator, the company's tours and activities brand, now accounts for 43% of total revenue, up from 7% in 2015.
Google Upgrades AI-Generated Ad Images with Better Human Depictions
Google has enhanced its Performance Max campaigns with improved AI image generation capabilities. The update, powered by Imagen 3, can now create more realistic human figures for ads. All AI-created images include SynthID tags for transparency. Google's also launching "asset-audience recommendations" to suggest effective visual elements based on audience data.
For retailers, a new beta test compares campaign performance with and without AI-generated assets, including text, images, and videos. The features are rolling out through Google Ads Manager.
Crocs Partners with ABLO to Let Customers Design AI-Generated Shoe Charms
Crocs has launched a smart new AI feature with ABLO. Customers can now design their own Jibbitz charms for their shoes. They can upload photos or type text prompts. The AI then turns these into unique circular charms in various art styles.
This fits Crocs' focus on personalization. The strategy helped boost revenue by 4% last year. Jibbitz buyers are among the company's best customers. ABLO's platform uses blockchain to protect design rights. This lets creators profit from their work while allowing others to remix it.
The AI charm creator supports Crocs' goal to launch new Jibbitz faster in 2025. For now, designs only come in circular shapes.
Humane Sells AI Pin Assets to HP After Failed Launch
Humane is shutting down after its AI Pin wearable device flopped. HP will buy the company's assets for $116 million. The deal includes Humane's Cosmos platform, tech staff, and over 300 patents.
The AI Pin launched with big hopes but sold only 10,000 units of its 100,000 goal. Users complained about basic problems. The device dragged down shirts, overheated, and worked poorly in sunlight. Even a price cut from $699 to $499 didn't help.
HP plans to use Humane's tech across its product line. The Humane team will form HP IQ, a new innovation lab. All AI Pin devices will stop working after February 28.
Thanks for reading.
Until next time!
The AI Marketers
P.S. Help shape the future of this newsletter – take a short 2-minute survey so we can deliver even better AI marketing insights, prompts, and tools.
[Take Survey Here]
