Parloa co-founder and chief executive Malte Kosub announced the partnership in a social media post, stating that Zalando will use Parloa's AI for customer conversations across Europe. However, neither company has made a formal announcement, and Zalando has not commented on the deal.
The partnership is significant, given Zalando's large customer base and Parloa's impressive funding history. Parloa raised $350 million in January at a $3 billion valuation, with $50 million in annual recurring revenue and 150% net revenue retention. The company has also received investments from SAP and has built its platform on Microsoft Azure using OpenAI models.
The timing of the partnership is also noteworthy, as the EU's AI Act became applicable on August 2. Article 50 of the act requires that systems built to interact directly with people be designed to inform users that they are dealing with an AI, with the duty to disclose falling on the provider rather than the retailer. European retail has been arguing about this article, with some calling for exemptions from labeling rules for AI-generated advertising.
As Parloa's platform runs on American infrastructure, despite being a European company, questions arise about who processes customer conversations, where they are processed, and on what legal basis. This is particularly relevant given that Zalando's customers will be discussing orders, returns, and refunds in 29 markets and as many languages.
The partnership highlights the growing importance of AI in customer conversations and the need for transparency in these interactions. As the use of AI in retail continues to evolve, companies must navigate the complex regulatory landscape to ensure compliance with laws like the AI Act.
This article was written with the assistance of AI.
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