Aaru Cofounder Ned Koh Encourages Client Skepticism of AI Model in Sales Pitch
Ned Koh, the 21-year-old founder and president of AI startup Aaru, employs an unconventional sales strategy by encouraging potential clients to distrust the company's AI models. Speaking at a recent conference, Koh stated that Aaru's approach involves openly inviting skepticism, believing it leads to better customer relationships. Aaru's technology simulates human populations using AI agents, leveraging diverse data to predict outcomes more accurately than traditional surveys, particularly by accounting for the gap between stated intentions and actual behavior.
Aaru, a two-year-old AI startup, utilizes a distinctive sales methodology where its founder and president, Ned Koh, asks clients to question the company's results. Koh, 21, stated at Fortune's Brainstorm Tech conference that his sales pitch includes the line, "Do not trust us. Do not trust our model." He believes that skepticism from clients fosters a more effective partnership in the long run.
Cofounded in March 2024 by Koh, then 19, with Cameron Fink, then 18, and John Kessler, then 15, Aaru develops AI agents that simulate statistically representative populations. These agents are built using data points such as credit card purchasing history, food-delivery orders, and demographic records, enabling the company to predict behaviors and outcomes.
One example cited was Aaru's simulation of nearly 2 million voters in a New York City primary mayoral election, where its prediction came within 2,000 votes of the final count. Koh argues that Aaru's success stems from its ability to bypass human bias, addressing what scientists call the "intention-behavior gap"—the disparity between what people say they will do and what they actually do. Koh simply states, "People lie," noting this impacts data collection, such as self-reported alcohol consumption or GLP-1 medication use.
In a partnership with Ernst & Young, Aaru reran a global wealth study that had previously surveyed 3,600 people across 30 countries. While the human survey indicated 82% of respondents would retain their parents' wealth manager, real-world retention rates typically fall between 20% and 30%. Aaru's blind simulation yielded a closer result of approximately 40%.
Aaru has attracted investments and clients including EY, Accenture, Interpublic Group, McDonald's, Boston Beer, A24, and Bayer. The startup recently partnered with Spindrift on product innovation, leading to the sparkling water company's launch of a still tea drink, a new category for them. In December, Aaru secured a Series A funding round led by Redpoint.
According to Fortune, Aaru's methodology focuses on predicting actions rather than stated intentions, offering a different approach to market research by training and benchmarking on "outcomes."
