Seattle-based startup Ethosphere, a voice-enabled artificial intelligence platform for retail operations, said today it has raised $2.5 million in pre-seed funding to bring large language models to brick-and-mortar store floors, aiming to help sales associates deliver better in-person service.

Point72 Ventures led the round, with participation from AI2 Incubator, Carya Ventures, Pack VC, Hike Ventures and J4 Ventures.

Founded in 2024, the company has built a platform that helps retailers that use data from front-line interactions with customers to generate coaching insights for associates. It comes in the form of guidance through the use of large language models and voice AI.

“AI is bringing change to every industry, and retail is no exception, but there is a significant gap in how the technology can be applied in a useful, human-focused manner,” said co-founder and Chief Executive Evan Smith.

Smith said the company takes a human-centric approach to improve the purchasing experience for customers, since this helps retailers’ bottom lines. When customers have a more enjoyable experience in-store due to effective salespeople, they are more likely to return or spend more at that establishment.

The same is true for employee morale. Service workers can often feel unseen by management for their accomplishments and hard work. Much of the modern retail landscape has become driven by outcomes that can be tracked and put in a ledger rather than the day-to-day experiences and context of work on the sales floor. That can become a black spiral for frontline workers who are guided to chase results instead of feeling empowered to engage with customers.

The company’s platform uses wearable microphones to record interactions between customers and associates. These recordings are processed using a set of large language models that transcribe the audio to gain insights into how salespeople are learning and developing their customer-facing skills on the job. The platform then offers specific, individualized feedback and coaching to help them improve their performance on the sales floor.

The platform’s guidance consists of praise, data insights and suggestions for improvement. Ethosphere said the messaging provided can be tailored to the specific brand voice of the business, including adhering to jargon and company culture.

Management has access to a dashboard that allows them to see both the areas where their team excels and the challenges they need to address. The platform also provides recommendations on next steps to help managers determine the best way to support associates in their work. This includes assisting them by reducing bias in how they view their team, celebrating high-performers and addressing team building.

“In an increasingly busy landscape flooded with theoretical AI, Ethosphere stood out to us with a practical, powerful application that we believe has the potential to directly impact the sales and customer experience,” said Sri Chandrasekar, managing partner at Point72 Ventures.

The company said it would use the funds to scale up program pilots with major retailers to assist them with enhancing support for frontline employees.

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