Olive 'over-promises' and 'under-delivers' on AI capabilities
Occurred: July 2022
US health care automation company Olive was accused of misleading marketing after it laid off 450 employees in a move said by CEO Sean Lane to have been caused by the company's 'fast-paced growth and lack of focus'.
The claim was seen as contradicting Axios interviews with former and current employees and health tech executives suggesting the company regularly over-hyped its capabilities and under-delivered, generating 'only a fraction of the savings it promises.'
Olive had been through various incarnations since it was founded in 2012, and was at one time valued at USD 4 billion. But it was dogged by questions about the efficacy of its software and the integrity of its marketing and leadership.
In October 2023, Olive announced it had sold off pieces of its business to healthcare companies Waystar and Humata Health, and would be closing.
Operator: WPP/AKQA; Circulo Health; GuideWell; TriHealth
Developer: Olive AI
Purpose: Automate healthcare services
Technology: Robotic Process Automation (RPA); Machine learning
Issue: Business model; Effectiveness/value
Transparency: Marketing - misleading