Customer service chatbots often face skepticism, with many consumers expressing a strong dislike for them. A recent Gartner survey found that 64% of consumers would prefer if companies avoided using AI in customer service, and 53% would even consider switching to a competitor if a company replaced human agents with AI solutions.
Alex Levin, co-founder of Regal and former product manager at Thomson Reuters, attributes this aversion to poor past experiences with low-quality, cost-driven chatbot implementations. At Handy, where Levin previously worked, outdated contact center software often limited flexibility and required substantial maintenance. This experience highlighted for him that, while many chatbot implementations may fall short, an effective approach could vastly improve customer interactions.
Regal, co-founded by Levin and Rebecca Greene (former chief product officer at Handy), builds AI-powered contact center tools designed to offer a smoother, more responsive customer experience. Regal’s phone- and text-based chatbots handle standard customer service requests with features like dynamic conversation flow, sentiment-based responses, and personalization. Brands can customize the chatbot's language and set parameters to ensure interactions remain both natural and context-aware. Chatbots are equipped to draw on specific customer details, like their name, birthday, and conversation history, to create a more engaging experience.
Regal’s bots act as “AI agents,” able to handle actions like follow-ups, scheduling calls, and escalating to human agents when necessary. This functionality positions Regal to compete in a market that analysts project will exceed $10 billion by 2032. Competitors such as Got It AI, Cognigy, and Sierra are also exploring AI solutions to automate contact center workflows.
Levin reports strong growth for Regal, noting that its technology serves millions of users through well-known brands such as Google, Kin, Toyota, AAA, and Ro. Regal aims to make autonomous interactions the norm within a decade, with Levin emphasizing the company’s commitment to this vision.
Recently, Regal secured $40 million in funding from Emergence Capital, Founder Collective, and Homebrew, raising its total investment to $83 million. This funding will support further product development and expand Regal’s New York-based team, which currently comprises around 100 members.
