Founders Interview — Alex Babin — Hercules AI

First, can you tell us about your professional background and the path that led you to HerculesAI?

My career began in high-tech manufacturing, where I gained a deep appreciation for innovation and scalability. Years ago, I founded my first company — a hybrid vehicle technology firm focused on developing advanced powertrains for hybrid cars. Backed by Draper Fisher Jurvetson, we built groundbreaking technology, but I quickly learned that innovation alone isn’t enough; building a scalable and sustainable business is just as critical. This realization led me to the world of AI, specifically computer vision. I went on to found Hercules AI, where we are creating AI-powered workers designed to augment knowledge professionals — automating repetitive tasks so they can focus on high-value, strategic work.

How was HerculesAI born?

The idea for Hercules AI emerged from observing how knowledge workers operate in large organizations. We noticed a clear pattern: many tasks were too complex for traditional automation tools yet still highly repetitive. For example, lawyers and insurance specialists often perform the same work repeatedly, but their tasks require reasoning and decision-making — something beyond the capabilities of early automation.

At that time, generative AI had not yet emerged; machine learning was still in its more traditional form. Recognizing this gap, we set out to develop AI models — not yet foundation models — to automate these repetitive but cognitively demanding tasks. We initially focused on the legal industry before expanding to other sectors.

By 2019, before ChatGPT and even before the groundbreaking Attention Is All You Need paper, we had already built highly effective AI models. But when foundation model architectures became viable, we pivoted, unlocking new possibilities that had previously been out of reach. This shift enabled us to expand rapidly beyond legal services into insurance, financial services, and beyond. Hercules AI has been growing ever since, leveraging the power of generative AI to transform knowledge work at scale.

Do you have more industries that you want to target?

Our focus isn’t on targeting a specific industry — it’s on building a strong partner network. The cognitive tasks performed by knowledge workers across industries share many similarities, but each industry also has its own nuances. That means we can’t effectively enter every industry on our own at the same scale and efficiency. To address this, we’re developing a network of strategic partners, including management consulting firms, distributors, and resellers. This ecosystem allows us to expand our reach and deliver AI-powered solutions more effectively. Right now, we have four key partners, and our network is rapidly growing.

How is your product different from others in the market? What makes it unique?

Our approach is fundamentally different. When ChatGPT brought AI into the mainstream, many companies rushed to build foundation models, train large language models (LLMs), or wrap applications around OpenAI’s or Anthropic’s models. But from the very beginning, we took a different path.

At Hercules AI, we train our own models — but we don’t believe in a one-size-fits-all approach. Instead of relying on a single massive model like GPT-4, which, while powerful, carries internet-scale biases and hallucinations, we focus on a more efficient and precise method. We develop and orchestrate specialized, mid-sized AI models, combining them into an ensemble that functions like an AI worker, delivering accurate and meaningful results.

Our biggest differentiator is the Hercules AI orchestration platform — a system that assembles AI models much like an assembly line in manufacturing. This enables us to rapidly configure AI workers tailored to specific tasks within an organization, ensuring superior speed, quality, and efficiency. This approach gives us a significant edge over traditional monolithic AI models.

What has been the most crucial moment in the history of HerculesAI so far?

The AI revolution, as we know it today, truly took off in 2022, and we can’t overstate the impact ChatGPT had on the market. It made AI’s potential undeniable, proving that AI isn’t just a trend, it’s here to transform every industry. For large enterprises, especially the Fortune 1000 companies we work with, AI went from being a secondary priority to priority number one. Organizations that once viewed AI as a long-term initiative suddenly recognized its immediate, game-changing potential.

Fortunately, by that time, we had already built our orchestration layer and developed the ability to assemble and deploy AI workers efficiently. This positioned us perfectly to meet the surge in demand, creating a strong tailwind for Hercules AI as the market rapidly expanded.

If you could go back in time, is there anything you’d do differently?

Great question. If I could do one thing differently, I would have started building our partner network even earlier. Partners bring deep industry expertise and a strong understanding of client needs — both of which are essential when deploying AI solutions at scale.

With Hercules AI’s capabilities, we can assemble highly specialized AI workers for virtually any complex enterprise workflow. But the key to market penetration, especially with Fortune 1000 companies, isn’t just having powerful technology — it’s having deep problem knowledge. Our partners provide that insight, allowing us to deliver the right solutions faster and more effectively.

Do you have any tips or advice for an aspiring founder?

It’s not so much an inspiration, more of a warning. AI has made it incredibly easy to build and launch products at unprecedented speed. This gives founders the illusion that they can quickly create something valuable by simply wrapping existing models like GPT-4 or Anthropic’s models. But the hard truth is this isn’t defensible. If your product is just a thin layer on top of someone else’s platform, it can be easily replicated, or worse, replaced by the platform itself.

We’ve already seen this play out. Last year, countless startups-built AI-powered SDR agents for sales enablement. Then, in one move, OpenAI released its own version, wiping out nearly 90% of them overnight. AI feels like a magic wand, you can build fast, but so can everyone else. That’s the double-edged sword. The real challenge for founders isn’t just building, it’s building something that can’t be easily copied or outpaced. The key is finding a true competitive edge, something unique, proprietary, and defensible. If your business is just an AI wrapper, it’s only a matter of time before it gets disrupted.

What are your plans and vision for the future of HerculesAI now that you expanded your Series B to $28 Million?

We’re continuing to grow and expand into new industries through our network of partners. This ecosystem not only allows us to enter sectors like healthcare, manufacturing, and the public sector but also helps us develop more sophisticated AI solutions and workflows tailored to industry-specific challenges. Geographical expansion is also a major focus, particularly in Europe and the Asia-Pacific region. We’ve already established a presence in Portugal and London, and the European market presents a unique opportunity, especially in industries like banking, where complex regulations and policies demand extensive knowledge work. This is exactly where AI can provide immense value.

Looking ahead, European expansion will be a key priority for us in 2025 and 2026, as we continue scaling Hercules AI to meet the evolving needs of global enterprises.

What do you think will be the impact of AI in the future of work?

AI is set to integrate into every aspect of our lives. Take Apple’s latest iOS update, for example. You can now create emojis just by describing them, eliminating the need to scroll through endless lists. It’s a small but powerful example of how AI simplifies daily tasks. Siri, too, has become significantly more capable with the help of large language models.

But this is just the beginning. Soon, AI will remove everyday friction in ways we take for granted today. Imagine calling your bank and skipping the frustrating voice menus instead, you simply say what you need in natural language, and an AI instantly understands and assists you.

AI will touch everything, from our calendars and to-do lists to how we interact with businesses and services. At Hercules AI, we focus on complex enterprise workflows, but on a broader scale, I believe AI will have the biggest impact on daily life since the invention of electricity. It’s not just a tool, it’s a fundamental shift in how we live and work.

Lastly, what has been the most challenging part of growing your startup? And the funnier part?

Every aspect of building a startup is challenging. There’s no part of it that’s easy finding product-market fit is tough, hiring top talent is tough, raising funds is tough, and acquiring clients is tough. Everything about it is hard. As Elon Musk famously put it, it’s like “chewing glass and staring into the abyss every single day,” and that couldn’t be more accurate. But it’s that struggle that makes the rewards so sweet. When you hit a milestone when you achieve product-market fit, when you have happy customers who love your product, when you build an amazing team, it all makes the hard work worthwhile. That’s what keeps us going.

On a lighter note, one of the most surprising moments came when we landed a Fortune 1000 client. At the time, it felt almost unbelievable that an organization of 80,000 employees would trust a solution from a small startup of just 25 people. But they did and our solution is now saving them hundreds of millions of dollars annually and is an integral part of their workflow.

At first, I wondered how it was even possible for such a large organization. One that could easily buy from giants like IBM or Microsoft to choose a startup. Why would they make that decision? And then it clicked: Buying from Microsoft or IBM doesn’t always guarantee the level of innovation you need. When an organization needs scalability and reliability, it’s natural to turn to the big players. But when you need to reinvent your processes or gain a competitive edge, startups are the ones driving the innovation that can help you get there.

Startups approach problems differently. We see opportunities to eliminate outdated processes and replace them with AI, to augment workflows with cutting-edge technology. It’s not just about scalability and reliability (though those are critical). It’s about taking your operations to the next level with next-gen solutions. Innovation is where startups thrive, and it’s that innovation that can provide organizations with the competitive advantage they need.