AI-powered fleet software startup Fairmatic has just raised $46 million in a Series B funding round led by Battery Ventures. The company, which using AI to create more accurate risk profiles of business vehicles for insurance purposes, now has total funding of $88 million.
In 2023, rising inflation has boosted insurance rates, and those higher rates are driving fleets to look into cost-cutting measures.
That puts Fairmatic in a great position to grow, since all of its value hinges on powering more accurate insurance decisions with AI tracking tools. If your fleet is safe enough, the argument goes, your insurance rates will drop.
Will Your Fleet Save Money With AI Risk Profiles?
Fairmatic works by tracking drivers with an app that monitors driving “events,” from erratic driving to harsh breaking. It identifies ways to improve, and it submits claims as well, automatically detecting crash incidents and analyzing data.
Keeping drivers safe is a top-three concern for any fleet, Tech.co's research team has learned, and for good reason: Distracted driving is a big problem. 14% of fatal crashes involve the use of cell phones, and this is nearly as large an issue in the business world as it is for drivers who are off the clock.
But AI isn't a foolproof way to save money on insurance, even if investors will provide $88 million for it. The Casualty Actuarial Society (CAS), TechCrunch notes, has found that any AI trained on biased data will replicate any discrimination found in that data.
Staying Safe With a Fleet
Fairmatic isn't the only fleet software to benefit from AI-powered tools. Fleet management systems, or FMS, offer one-stop-shops for all of a fleet's driver and vehicle tracking needs. Many of them include AI tools, though these are typically on the providers' higher-end plans.
Our researchers have noted Lytx as the best FMS for AI safety tools specifically, thanks to its “machine vision” tools which are designed to address distracted driving when it happens, while generating video evidence to go along with any harsh driving events.
One of our top-rated overall FMS solutions, Samsara, also includes an AI-powered “Camera ID” tool, which allows dash cams to speed up dispatching by learning to recognize drivers by their faces. And since Samsara starts at an industry-typical $27 per vehicle per month, it's an example of how AI's benefits don't have to cost a bundle and have benefits that can extend beyond insurance.