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No Priors Ep. 97 | With Decagon CEO and Co-Founder Jesse Zhang

Today on No Priors, co-founder and CEO of Decagon, Jesse Zhang, joins Elad to discuss the future of agentic customer support. Decagon provides AI-powered customer interactions for companies like Rippling, Notion, Duolingo, Classpass, Substack, Vanta, Eventbrite, and more. Jesse shares the thesis behind starting Decagon, why he sees customer support as the ideal entry point for agentic technology, and what areas of AI excite him most. They also discuss voice-based interfaces, issues with latency in current capabilities, and the connection between young math olympiad communities and today’s AI startups. Sign up for new podcasts every week. Email feedback to show@no-priors.com Follow us on Twitter: @NoPriorsPod | @Saranormous | @EladGil | @TheJesseZhang Show Notes: 0:00 Introduction 0:30 Starting Decagon 3:15 Business impact of adopting agents for customer support and customer ops 8:00 AI infrastructure and models for customer success agents 12:05 Voice-based capabilities and text-to-speech engines 15:00 Combatting latency 16:25 Crossover of math and AI communities 21:12 Exciting areas of AI 25:29 Strengths and weaknesses of agents

Elad GilhostJesse Zhangguest
Jan 16, 202530mWatch on YouTube ↗

CHAPTERS

  1. 0:00 – 1:02

    Decagon’s mission: enterprise-grade AI agents for customer support

    Elad introduces Jesse Zhang and Decagon, framing the company as a fast-moving startup building generative AI for enterprise customer support. Jesse sets the context for why customer interactions are a “golden” agent use case and what makes Decagon distinctive.

    • Decagon builds AI agents focused on customer service/customer experience
    • Rapid adoption across large enterprises and fast-growing startups
    • Customer support seen as a natural early fit for LLM-powered agents
    • Company emphasis on being production-ready, not just demos
  2. 1:02 – 2:32

    Founder origin story and finding the initial wedge through customer discovery

    Jesse shares his background (math contests, Harvard CS, first startup acquired) and how he met co-founder Ashwin. They started from broad interest in agents, talked to many potential customers, and converged on customer service as the most compelling initial application.

    • Jesse’s path: math contests → CS at Harvard → startup acquired by Niantic
    • Early approach: don’t overthink, talk to lots of customers
    • Discovery process led to customer service as the clearest wedge
    • Focus on making early design decisions based on real customer needs
  3. 2:32 – 3:15

    What Decagon ships: agents plus transparency, observability, and control

    Jesse explains Decagon’s product positioning: AI agents in production for large support organizations, built to avoid the “black box” problem. Transparency and feedback loops are highlighted as critical for enterprise trust and ongoing improvement.

    • AI agents deployed for customer service and customer experience teams
    • Transparency: show what data was used and how answers were formed
    • Tooling for feedback, oversight, and iterative improvement
    • Target customers: any company with sizable support operations
  4. 3:15 – 6:15

    Business impact metrics: cost savings, deflection, and customer satisfaction

    Elad references Klarna’s widely shared results to illustrate how dramatic the upside can be. Jesse generalizes what customers care about most: share of conversations automated and customer happiness, with accuracy as a gating requirement in regulated contexts.

    • Primary KPIs: % of workload handled and CSAT/NPS outcomes
    • Secondary constraints: accuracy/compliance needs by industry
    • Benefits include 24/7 coverage, faster resolution, and language scaling
    • Agents can shift humans to higher-value work rather than pure replacement
  5. 6:15 – 8:00

    Case study: BILT Rewards—scaling support without scaling headcount

    Jesse walks through a concrete example of ROI and operational change at BILT Rewards. Rapidly increasing user volume created exponentially rising support demand; Decagon helped stabilize team growth and improve responsiveness.

    • Support volume grows with user base; hypergrowth overwhelms teams
    • Within ~1 month: slowed/paused support team scaling via automation
    • After ~1 year: restructuring support operations around agent capability
    • Reported impact: ~65 support-agent headcount worth of savings; better user experience
  6. 8:00 – 10:17

    Under the hood: orchestration layer + classic software to make models usable

    Jesse describes Decagon as primarily a software company leveraging shared foundation models. Differentiation comes from orchestration (combining models, evals, business logic) and the surrounding product (analytics, transparency, conversation understanding at scale).

    • Foundation models are commoditized inputs; value accrues in software layers
    • Orchestration: multi-model routing, eval-driven decisions, business-logic shaping
    • Visibility tooling: data provenance, step tracing, conversation analysis
    • LLMs summarize trends, detect knowledge gaps, and categorize support themes
  7. 10:17 – 12:06

    What’s missing for next-level agents: instruction-following over pure reasoning

    Elad asks what technology gaps remain for agentic systems. Jesse contrasts recent progress in quantitative reasoning (math/coding) with what matters most in customer support: strict instruction-following aligned to SOPs and workflows.

    • Different “intelligence types” matter for different applications
    • Customer support agents need reliable instruction-following and policy adherence
    • Non-plateau view: progress may be shifting from reasoning to other competencies
    • Expectation of continued lab research improving instruction compliance
  8. 12:06 – 14:28

    Voice agents arrive: multi-channel support beyond chat and email

    The conversation shifts to voice-based customer support. Jesse explains why channel flexibility matters and why voice is increasingly requested once companies see text agents working in production.

    • Customers want the same agent capability across voice, chat, email, SMS
    • Enterprises are now piloting voice agents after validating text agents
    • Voice quality and realism have improved via providers like ElevenLabs/OpenAI/Cartesia
    • Decagon works closely with model providers to make voice work at scale
  9. 14:28 – 16:24

    Latency trade-offs in voice: voice-to-voice vs speech-to-text pipelines

    Elad highlights latency as a core UX blocker for voice interactions. Jesse outlines architectural options—voice-to-voice models for responsiveness versus text pipelines for richer orchestration—and how product techniques can mask unavoidable delays.

    • Latency sources: transcription, LLM processing, tool/data fetches, TTS generation
    • Voice-to-voice can reduce latency but may limit complex multi-step workflows
    • Speech-to-text → compute → TTS offers flexibility but adds delay
    • UX mitigations: streaming, partial responses, and “one moment while I look that up” patterns
  10. 16:24 – 18:27

    Why math/competition communities show up in AI startups

    Elad asks about the strong presence of Math Olympiad/IOI-style founders in AI. Jesse attributes it to an existing tight-knit talent pool and a broader shift of top technical talent toward startups as that path became mainstream.

    • Math/coding contest communities created dense networks early
    • Many founders are same-age peers who’ve known each other for years
    • Shift from academia/quant trading toward startups over the past ~5–6 years
    • Community visibility accelerates learning and company formation momentum
  11. 18:27 – 19:50

    Informal founder networks: advice, angel investing, and shared learning loops

    Jesse describes a largely informal support system among peer founders—mutual angel investing, frequent hangouts, and exchanging hard-won operating lessons. The benefit is breadth: company-building has massive surface area beyond pure engineering.

    • Mutual angel investing between peer founders/companies
    • Peer support helps across hiring, sales, compensation, and operations
    • Social bonds (games, regular meetups) enable continuous knowledge transfer
    • Founder communities tend to rotate every 5–7 years with new cohorts
  12. 19:50 – 21:09

    Hiring signals: contests help, but building teams requires broader lenses

    Elad asks whether Jesse’s background changes how Decagon hires. Jesse notes contest credentials can be a useful signal and community catalyst, but emphasizes that talent is widespread and the hiring process can’t rely on pedigree alone.

    • Contest backgrounds can be a strong signal when shared context exists
    • Ashwin’s similar contest history reinforces the lens but doesn’t dominate it
    • Decagon still hires broadly; many great candidates lack contest pedigrees
    • Community events/puzzles are effective for meeting strong engineers
  13. 21:09 – 25:07

    The next 12–24 months: multimodal context, computer use, and supervising agents

    Jesse outlines what he’s excited about: better models across modalities and deeper contextual understanding (e.g., screen/context awareness). He also predicts job roles will shift toward supervising and editing fleets of agents, creating new product surface area for control and monitoring.

    • Multimodal improvements: richer context like “entire screen” understanding
    • Agentic UI automation (computer-use demos) is promising but not yet production-ready
    • Work evolves toward supervising/editing agents rather than doing tasks end-to-end
    • Decagon focuses on visibility/control systems analogous to managing humans
  14. 25:07 – 30:09

    Where agents win (and where they won’t yet): rollout path + measurable ROI

    Closing discussion covers the near-term limits and advantages of agent deployments. Jesse argues many domains will adopt slowly due to non-determinism and trust requirements, while successful early categories allow incremental rollout and offer clearly quantifiable ROI—like customer support.

    • Many use cases require near-perfection immediately (e.g., security), slowing adoption
    • Non-deterministic behavior makes trust and risk management harder for buyers
    • Other areas (e.g., text-to-SQL) struggle with ROI clarity and become “copilots”
    • Best near-term use cases: incremental deployment + easy-to-measure business impact

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