#2293 $2 million / year AI engineering firm
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this Mixergy interview, Andrew Warner speaks with Tarun Thummala, founder and CEO of PressW, an AI engineering firm generating over $2 million annually. The conversation explores how Tarun built his Austin-based company by pivoting from the traditional "AI transformation" pitch to delivering specific, measurable outcomes for clients in regulated industries. (00:45) PressW specializes in document-heavy workflows, often automating 90-95% of manual processes for businesses in financial services, healthcare, and legal sectors. The discussion covers Tarun's networking-based customer acquisition strategy, his unique approach to hosting AI events costing $15-25K, and how he built an internal AI-powered operations system called "Atlas" that can nearly automate the entire process from sales call to project completion.
- Main themes: Building a successful AI services business through relationship-driven sales, specializing in regulated industries, and creating internal AI systems to scale operations efficiently.
Speakers
Tarun Thummala
Tarun Thummala is the founder and CEO of PressW, an AI engineering firm based in Austin that generates over $2 million in annual revenue. He previously served as CTO of an AI product company that was acquired when he was 24 years old. Tarun has been working in the generative AI space since January 2023, just one month after ChatGPT's launch, giving him extensive experience building custom AI applications for businesses in regulated industries like financial services, healthcare, and legal.
Key Takeaways
Shift from Buzzwords to Specific Outcomes
The most successful AI companies have moved away from selling vague "AI transformation" to delivering concrete, measurable results. (26:27) Tarun explains that customers now demand specific workflows, ROI metrics, and clear outcomes rather than broad transformation promises. This shift occurred as buyers became more sophisticated about AI and started "sharpening their pencils" on budgets. For professionals, this means when proposing any AI initiative, focus on tangible business outcomes like "automate 95% of document processing" rather than generic transformation language.
Network-Driven Growth Through Authentic Relationships
Rather than aggressive sales tactics, Tarun built his $2M business primarily through genuine networking and relationship cultivation. (10:15) He emphasizes spending 80% of conversations talking about AI technology and possibilities, not pitching services. Only about 10% of his conversations result in business, but this approach builds trust and positions him as an AI expert. The key is asking "How can I make this conversation valuable to them?" rather than focusing on what you can get from the interaction.
Specialize in High-Value, Regulated Industries
PressW's success comes from focusing on highly regulated industries like financial services, healthcare, and legal, where AI implementations require deep expertise and careful handling. (34:31) These industries have complex compliance requirements and document-heavy workflows that create higher barriers to entry for competitors. Tarun specifically targets "intelligent document processing workflows" where escalation handling and industry context are crucial. This specialization allows for premium pricing and reduced competition.
Host Strategic Events for Market Positioning
Tarun invested $15-25K in hosting AI events at premium venues in Austin, which directly generated new business and established market credibility. (19:17) The primary goal wasn't immediate sales but to "cement ourselves as a real player in the Austin space." These events create multiple benefits: direct customer leads, relationship building with speakers from major companies, halo effect from being associated with industry leaders, and positioning as the go-to AI expert in the local market.
Build Internal AI Systems to Scale Operations
PressW created an internal AI system called "Atlas" that can nearly automate their entire business process from initial sales call to project completion. (38:21) The system captures call transcripts, generates proposals, manages team allocation, creates project tickets, and maintains full context throughout projects. This approach allows a services business to scale without proportionally increasing headcount, as AI agents handle routine operational tasks while humans focus on strategy and client relationships.
Statistics & Facts
- PressW can automate up to 95% of document processing workflows for clients in regulated industries like background checking companies that process records from over 5,000 different court systems. (01:55)
- According to an MIT report mentioned by Tarun, 95% of AI pilots never made it to production, largely due to lack of expertise in setting up the proper infrastructure and agent architecture. (35:54)
- Less than 10% of PressW's business came from old relationships, with 90% coming from new network connections made since starting the company, demonstrating the power of active networking over relying on existing contacts. (09:05)
