Episode Summary: "First Time Founders with Ed Elson – This Company Uses AI To Help 911 Save Lives"
In this episode of "First Time Founders," host Ed Elson engages in a compelling conversation with Michael Chime, CEO and co-founder of Prepared, a pioneering company leveraging artificial intelligence (AI) to revolutionize the 911 emergency response system in the United States. The discussion delves deep into the challenges faced by traditional 911 call centers, the innovative solutions Prepared offers, and the broader implications of AI in public safety and government services.
Understanding the Traditional 911 System
Ed Elson begins by highlighting the staggering volume of emergency calls in the U.S., noting that approximately 240 million 911 calls are made each year, with 85% originating from mobile phones. Despite this high call volume, the infrastructure underpinning the 911 system remains outdated, primarily designed for a world dominated by landlines.
Michael Chime elaborates on the core challenges:
"You have more emergencies and less people. And that's creating tax, that's creating burden." ([03:46])
He points out that increased call volumes are not always indicative of rising crime rates. Instead, a significant portion of these calls (around 60%) are non-emergent, such as noise complaints and parking tickets, which strain the already understaffed and overwhelmed call centers.
Prepared's AI-Powered Solutions
Prepared aims to modernize the 911 system by introducing an AI assistive layer that enhances the efficiency and effectiveness of emergency response. Michael describes Prepared's offerings:
"We sit next to those operators and help them process calls faster, better." ([02:28])
Key features include:
- Real-Time Translation: Addressing the challenge of language barriers, Prepared enables real-time translation for non-English calls, expanding the accessibility of emergency services.
- Two-Way Communication: Facilitates audio and text communication between callers and dispatchers, ensuring clearer and more precise exchanges during emergencies.
- Video Integration: Allows callers to livestream emergencies, providing dispatchers with visual information that can be crucial for accurate and swift responses. Michael recounts a life-saving instance where visual input enabled a dispatcher to correctly guide a caller in administering CPR ([19:05]).
Challenges in Modernizing 911 Centers
Ed probes into the resource constraints faced by 911 call centers, questioning the reasons behind declining staffing levels despite rising call volumes. Michael attributes this to a combination of factors:
"Post defund the police... many would say they want to be Jake Paul instead." ([07:56])
He explains that the perceived nobility and financial incentives of roles within public safety have diminished, making it harder to attract and retain qualified personnel. Additionally, the fragmented technology stack—with call routing, information input, location services, and protocol management spread across multiple systems—creates a cumbersome environment for operators.
Michael emphasizes the necessity of reliable and integrated technology in such high-stakes settings:
"It’s a tough trade... having a ton of fail safes and me being, me believing the company's really credible causes me to be skeptical." ([12:52])
He underscores that any technological innovation in this realm must prioritize reliability and safety over rapid deployment.
AI’s Role in Enhancing Emergency Response
Prepared distinguishes between two primary applications of AI within the 911 ecosystem:
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Automation of Non-Emergent Calls: Utilizing AI to handle routine inquiries and non-critical requests can significantly reduce call volumes, allowing human operators to focus on pressing emergencies. Michael shares:
"Our agent answers that call, handles the request... that alone could offload 40, 60% of traffic in cities." ([22:36])
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AI as a Co-Pilot for Operators: In critical situations, AI can aggregate and analyze data to assist dispatchers in making informed decisions. For example, AI can recommend the most suitable responder based on real-time data and historical performance, ensuring that emergencies are managed by the most qualified personnel available.
Michael encapsulates their AI philosophy:
"AI makes a lot of sense there as well." ([28:24])
Business Model and Growth Strategy
Prepared operates on a per-call pricing model, where cities pay based on the volume of calls managed by their AI solutions. This scalable approach ensures that cities of varying sizes can adopt Prepared’s services according to their specific needs.
As Prepared evolves, Michael reflects on the entrepreneurial journey:
"There are three distinct phases that a founder has to go through." ([32:28])
He outlines the transition from building the product and directly engaging with customers to managing teams and fostering a cohesive company culture as the organization grows beyond 100 employees.
Investor Perspective and Market Potential
When addressing concerns about the revenue potential given that Prepared serves underfunded local governments, Michael draws parallels with transformative tech companies like Figma. He argues that AI is at a nascent stage with vast untapped potential, likening the current moment to the early days of the internet where foundational opportunities were just beginning to be realized.
"We're at one of those times, right, where everything in an industry not only can, but ought to be rethought." ([37:15])
He emphasizes that the integration of AI in emergency services represents a significant market inflection point with the capacity to generate substantial shareholder value as the technology matures and becomes widely adopted.
Addressing Data Privacy Concerns
A critical aspect of Prepared’s technology involves accessing and processing sensitive data. Michael addresses privacy concerns by clarifying that Prepared only utilizes existing data already mandated to be stored by 911 centers:
"We are just taking information that's already being stored and now using it to the full potential of serving citizens." ([43:26])
He explains that any additional data, such as video feeds, are opt-in features requiring explicit consent from callers, ensuring that Prepared operates within ethical and legal boundaries regarding data usage.
Future Applications and Broader Impact
Beyond 911 systems, Prepared envisions AI transforming other public services, particularly quality of life issues handled by non-emergency lines like 311. Michael highlights the inefficiency of current systems, citing examples like long hold times in Los Angeles, and posits that AI can enhance these services by improving responsiveness and operational efficiency.
"We're going to change hearts and minds and they're going to see the new companies as credible." ([47:21])
Advice for Aspiring Entrepreneurs
In closing, Michael Chime offers invaluable advice to budding entrepreneurs:
"Work on something that matters, man... you'll not regret it." ([49:34])
He encourages founders to focus on meaningful and impactful ventures, emphasizing the importance of aligning one's work with personal values and societal benefits. Michael stresses that while tackling public safety may present unique challenges, the potential to save lives and improve communities makes it a profoundly rewarding endeavor.
Conclusion
This episode of "First Time Founders" sheds light on the critical intersection of AI and public safety, illustrating how innovative technology can address systemic inefficiencies in emergency response systems. Michael Chime’s insights not only highlight the tangible benefits of Prepared’s solutions but also underscore the broader potential of AI to transform government services, making them more responsive, efficient, and human-centric.