Artificial Intelligence in the pet start-up scene

Artificial Intelligence (AI) is a growing phenomenon across many industries. In the pet industry, most of the businesses that are relying on this technology, as a way to personalize, innovate and expand their products or services for their target audience, are start-ups.

Customer interaction

For Brazilian pet marketplace Woof Pet, AI is a way of coping with growing business demands. The company was part of the 2022 Google for Startups Cloud Academy, a program that helps start-ups leverage data-powered innovation to accelerate and digitally transform their projects.

Woof Pet’s online platform directs pet parents to the products or services they want, by linking them with the company’s 7,819 affiliated retailers in 277 cities. Woof Pet has recently integrated into this platform the tailored ‘Woofer’ chatbot tool: a lifelike image of a dog that pops up on the consumer’s screen.

According to the company, Woofer is different from a standard chatbot: he has his own personality and – thanks to AI – provides each pet parent with personalized advice based on the information that they share. The initial success of this business plan has already allowed the company to expand to the US.

The benefits of chatbots

According to a report by software company Demand Sage, chatbots can complete 70% of conversations quickly, increasing customer satisfaction. AI platform HubSpot found that 40% of customers preferred a chatbot over an agent, as long as their query was resolved quickly.

The main appeal of AI-powered chatbots for pet start-ups lies in the reduction in human resource costs, as Lionel Robert, Professor at the University of Michigan’s School of Information (UMSI), explains to PETS International: “It is quicker and easier in terms of cost, with a much lower cost barrier and it’s much more scalable.”

Furthermore, the software can be easily replicated and implemented into the business. For example, a company pays for a chatbot system ‘as a service’, which is advantageous as the upfront investment is limited and the company gets updated versions of the software as they become available.

Personalization

Professor Robert believes that another “huge advantage” of AI is that it allows pet start-ups to have personalized interactions with their customers. Woof Pet is not the only pet-industry start-up to be exploring this opportunity. In Belgium, direct-to-consumer (DTC) pet-care start-up Just Russel uses AI on health-related data to personalize the products offered to each animal and to offer a data-driven pet care approach.

“As we are in direct contact with the customer and have multiple data points about pets, we can personalize the whole customer journey and present products based on the pet’s needs,” states Co-founder Victor Mortreu. The company also offers services based on the individual pet’s needs. For example, besides being presented with recommendations for weight-loss food, overweight pets can receive an invitation to participate in Just Russel’s online weight management program.

The downsides of AI

Pet companies are especially keen to implement AI technology to communicate with the younger generations of pet parents. Millennials in particular are more accustomed to using chat features on apps rather than making phone calls, so having this feature available can boost a platform’s appeal.

However, companies must be careful that AI-powered technology does not violate privacy laws when absorbing personal data from customers. Professor Robert emphasizes that this deserves attention: “Especially if you’re in Europe, there probably will be issues of privacy – not so much for the pet itself, but for people interacting with the pet.”

The use of AI can present some other challenges, including a lack of control over algorithms in AI software which can lead to biases in decision- making. Mortreu explains that in the past, Just Russel encountered problems with some versions of the ChatGPT models producing misleading suggestions to customers.

The use of biotechnology

Australian animal biotechnology company VetChip is using AI to determine whether an animal’s Heart Rate Variability (HRV) indicates that it is happy or stressed. A biosensor is placed under the pet’s skin to provide health-related data. By using AI on the gathered data, VetChip claims it is able to “provide owners with unprecedented peace of mind that their much-loved pets are happy and safe”.

“AI can be trained to recognize a range of ‘normal’ and ‘abnormal’ signals as well as the intermediate classifications to determine an animal’s state of health and well-being,” Garnett Hall, VetChip CEO and Founder, comments to PETS International.

DNA applications

London-based PetGenoma is in the early stages of creating DNA test kits for dogs, and is also turning to AI for help with analyzing and interpreting genetic data accurately and efficiently. “With AI, we can unlock a wealth of information that can aid in disease prevention, breed improvement, drug development, personalized medicine, genetic counseling and much more,” states the company’s Founder and CEO, Jackeline Palma.

Currently, other similar companies only test part of the pet’s DNA sequence, which can lead to inaccurate results. Palma highlights that it would be impossible to gain accurate answers about the whole genome sequence of the pet at the speed PetGenoma achieves without the use of AI.

Monitoring pets’ health and behavior

Ongoing innovation means that the future of AI is still wide open. Professor Robert believes that ‘robot pets’ to monitor and improve the mental health of companion animals could be the next big AI-powered solution in the pet industry. He adds that robot pets could especially help to engage a pet in mentally stimulating behavior.

At Just Russel, they similarly envisage AI technology opening up future opportunities related to monitoring pet behavior. The company’s co-founder says he expects to see more advanced AI models being integrated into daily pet care, including for behavioral-based advice.