Digital Workforce - Automation and Software Robotics Service Company

The agent technologies I have researched myself are based quite purely on LLM and specifically on Transformer-based models. This utilizes task assignment with ordinary text and the Transformer’s continuously developing ability to infer.
These are sometimes also called LLM agents.

The agent’s own implementation receives actions from the LLM and executes them. In Sema4.ai, these actions can be added with Python.
DWF has been testing Sema4.ai’s agents in 2024, and according to Karli Kalpala, they are capable of performing tasks that are difficult to define through conditions with RPA.

DWF’s personnel largely consist of business process experts from the business areas DWF focuses on. The biggest investment is likely in Healthcare. For this reason, work efficiency is considered through genuine healthcare business processes, not technological hype.

RPA process optimizations have focused on tasks that genuinely enhance productivity. The task of AI Agents is likely to enhance processes in a similar way, but it only creates more opportunities.

Here’s a LinkedIn link to the message from the CFO of Länsi-Uusimaa (Western Uusimaa) concerning the pre-preparation work for client payment decisions agreed with DWF and the benefits this brings.

The post was liked by 100 people, a large part of whom are from other well-being services counties in Finland, so further work is likely to come if the planned savings are realized.

So, when managed correctly, AI Agents only bring more opportunities alongside RPA.

Edit Regarding the question of whether the term AI Agents is clearly defined, based on a Google search, it is. It’s worth searching for the term “LLM Agents” to find that consistent definition.

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I agree with this. I’m not criticizing the technology itself, but rather the hype around it, which has been unavoidable if one has followed the AI discussion lately. We’ve seen it bring additional capabilities to process automation, but the big agent revolution, as I understand it, is still pending.

The strength of “RPA-LLM” likely lies in analyzing unstructured text - for example, finding addresses, phone numbers, or other identifiers. Or if an agent operating in a browser interface doesn’t break due to minor changes, provided the intent of the given instruction is clear.

Perhaps AI agents should also be categorized like the levels of autonomous driving in the automotive industry? That would bring clarity to how ambitious a technological breakthrough is being pursued. The higher the level of automation sought with AI, the more interested legislators are likely to be in these activities.

Healthcare cases are tricky anyway, plus GDPR, the AI Act, and various reporting and archiving obligations, which national and EU legislation requires or will require, must be taken into account.

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In my opinion, the theoretical benefits of LLM Agents are clear. Compared to RPA, the question is whether their reasoning is reliable enough.
RPA is based on unambiguous logic and conditions, while Transformer ultimately relies on probabilities.
I believe that DWF has carefully tested the reliability of LLM agents, as Karli Kalpala has written several articles about it.
Furthermore, since sema4.ai has already started to take the solution into production, I believe it is reliable enough. Antti Karjalainen is, after all, a credible operator in the field.

The use of Transformer in LLM Agents will accelerate its reasoning capabilities, as demonstrated by Meta’s Coconut (Chain of Continuous Thought) and similar approaches.

sema4.ai’s AI Agents are probably not a revolutionary solution, but if they bring new possibilities alongside RPA, that’s enough.

Of course, Karli Kalpala hypes it quite a bit in the article I linked in today’s post. It’s worth reading.

This is similar to the deliberation regarding self-driving cars. As late as 2020, autonomous cars calculated how much other vehicles were moving and how the car should proceed in traffic.
Now, the routes of all cars are predicted with Transformer. The more data it’s trained on, the more reliable it becomes.
Edit So, all the intelligence of a self-driving car or robot is in the cooperation of several Transformers.

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I have understood that DWF is an essential “delivery” step that brings AI agents into practice for the customer, through its Outsmart platform. So, AI agency alone doesn’t bring anything yet; precisely that “delivery” step is needed for it. I recall this being mentioned during the announcement of the Sema4ai collaboration.

Off-topic. I am still of the opinion that the company should change its name. Digital Workforce Services is too generic and difficult to pronounce, at least outside the Anglo-Saxon region. Outsmart would be better.

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Exactly, meaning R&D companies and IT service companies that develop AI Agent technology implement them to enhance customer processes.

DWF’s Outsmart platform gathers all kinds of process enhancement services (various RPA products, AI Agents, etc.) and runs them in DWF’s cloud, offering these services to the customer.

The customer does not need to set up cloud infrastructure or be responsible for system functionality.
The customer pays for this on an ongoing basis. This is why recurring revenue accounts for almost 70% of turnover.

It doesn’t scale like a SaaS product, but it scales lightly nonetheless and creates stability in turnover.

Today there was news that Digital Workforce and Sema4.ai are expanding their cooperation. This was expected, as sema4.ai competes with other AI agent manufacturers, and it benefits from direct feedback from customer projects for product development.
So this is an advantage for both DWF and sema4.ai.

There are many AI Agent manufacturers, as I linked in one of my previous posts, and they all compete fiercely with each other.

DWF’s advantage is that it can take on other suppliers in addition to sema4.ai. After all, DWF has RPA tools like UiPath and Blue Prism in Outsmart, among others.

IT service companies can also offer AI Agents to customers. DWF’s competitive advantage in this regard is a strong understanding of business processes in the areas where they offer services.
So DWF’s business model based purely on RPA sounds good. AI Agents can bring even more to it.

Otherwise, if someone wants to comment on AI Agents in a technical sense, I recommend first delving into the topic a bit.
First, DWF’s blog post on the basics.

Next, sema4.ai’s blogs.

In addition, sema4.ai’s YouTube channel shows examples of its use.

After these, one will have a pretty good understanding. I have, of course, gone through these and much more myself.

If one then wants to understand the operation and potential of AI Agents in more detail, one should delve into the Transformer AI model.

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Digital Workforce seems to be in an acceleration phase, it was announced again this morning.

Digital Workforce and Sema4.ai Expand Their Partnership to Bring AI Agents to International Markets

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Here’s a simple practical example of how an AI Agent (LLM Agent) works.\n\nProvide ChatGPT with Digital Workforce’s Q3 analysis by Inderes as an attachment.\n\nAsk ChatGPT the question: “Can you read the company’s revenue forecast for 2024 (2024e) from the attached file? After that, can you find on the company’s website what their revenue forecast for 2024 is?”\n\nChatGPT will retrieve Inderes’ forecast and then search DWF’s website for their guidance and report it.\n\nThat is the foundation of an AI Agent. In sema4.ai’s settings, you can specify which language model it uses (e.g., ChatGPT’s GPT-4o).\n\nIn addition to the above, an AI Agent internally calls the LLM multiple times and attempts to break down the task into logical components before execution. Finally, it calls functions (actions, e.g., retrieving customer data from CRM) to complete the task.\n\nOf course, sema4.ai has much more, but as a concept, an AI Agent means just that. There’s nothing exotic about it, and it’s just a logical extension to leverage the continuously evolving reasoning capabilities of current LLM models.\n\nThe question is mainly whether enough useful applications for AI Agents will be found, as has been predicted.\nAnother question is how reliable a probability-based AI Agent is. RPA, based on unambiguous conditions, is naturally reliable.\n\nDWF’s Karli Kalpala seems to be continuously writing articles about AI Agents for international publications. Here for the insurance industry.\n\nPresumably, this is part of the sales strategy.\n\nI also listened to a podcast where DWF’s AI Lead Data Scientist Rami Luisto talked about his tasks at DWF. It’s about 2 hours long and a bit tedious. A pre-planned agenda would have been useful.\nBefore AI Agents, DWF used AI by employing lightweight LLM models that RPA would call when needed for simple text analysis.\n\nDWF has finally turned its results positive this year. Let’s hope they don’t forget business realities in the AI hype and that profit growth continues.\nImplementing AI Agents should not, however, require unreasonable investments.

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Digital Workforce offers, among other things, a free basic course into the world of agents, as well as a broader Agent AI curriculum. The purpose of agentacademy.ai training is, among other things, to “meet companies’ growing need to develop AI literacy and understanding of AI agents within their organizations.”

agentacademy.ai in brief:

Targeted Curriculum:

Understanding Agentic AI: Free basic course.

Agentic AI Business Analyst: Focuses on identifying opportunities, project management, and maintaining AI solutions.

Agentic AI Developer: Advanced training for building and deploying AI agents, to be released later in the spring.

Flexible Learning: Online, self-paced courses for busy professionals.

Certificates: Awarded certificates to demonstrate competence.

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They are starting to pay dividends, according to their announcement. Sounds good… growth, dividends, and acquisitions.

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One could assume these are coming.

There should be enough cash if a suitable company is found for acquisition.
The dividend policy, i.e., at least 30% of the financial year’s profit for dividends, could indicate a belief in profitable growth and that there’s no longer a need to focus solely on growth?

AI Agent platforms are also being built by large players, such as OpenAI. sema4.ai is a small player and might get left behind. Their competitive advantage, in my opinion, is currently that they focus on enterprise-level AI Agents, meaning they have tools to integrate into a company’s systems and management views for Agents. In addition, many other tools for managing enterprise-level processes.

Since Antti Karjalainen developed the RPA product Robocorp, sema4.ai has a strong understanding of RPA (in practice, Antti is likely in continuous contact with sema4.ai).

Of course, large AI players can start building enterprise-level AI Agent platforms, but AI Agents aimed at ordinary consumers (e.g., OpenAI Operator) might interest them more.

Still, I won’t buy more until insiders buy.
One would think Antti Karjalainen would buy as the company’s leader.

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Interesting to see what Capman does, as they still hold over 15% ownership. The fund that owns these will be closed by the end of next year. Will the shares be transferred to an active fund? Is Capman’s divestment linked to the sale of the entire company, meaning other major shareholders (e.g., founders) will also exit? The industry would encourage longer holding, but private equity investors have their schedules. Capman has been involved with the company for at least 7 years already. That’s a long time for a VC.

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”Our company has made good progress in implementing its profitable growth strategy. In December, we refined the financial targets for the strategy period 2025-2026. At this stage, it is natural to initiate dividend payments and create a dividend policy for the coming years.”

It is quite directly stated there that dividend payments will begin. I would assume that Q4 has therefore proceeded quite favorably.

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Here is Joni’s preview report as DW publishes its financial statements on Feb 19. :slight_smile:

EDIT: Attachment/link updated :slight_smile:

Digital Workforce, a pioneer in automation utilizing software robotics, will publish its financial statements on Wednesday, Feb 19. We predict that revenue development continued to be strong in Q4. The scale of growth scalability largely depends on the level of investments. We expect the company to guide for revenue and operating profit growth for 2025. In addition, the company announced a new dividend policy yesterday, and we estimate the company will distribute dividends already this spring. We reiterate our target price of 4.7 euros for the share and our ‘add’ recommendation.

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Social and Health Services Study: Up to 3 Billion Euro Annual Productivity Benefit for Wellbeing Services Counties with Hyperautomation

Hyperautomation would enable over 20 percent productivity improvement in every service area

Based on Digital Workforce’s experience, some productivity measures can be implemented in a few months

The study on the productivity impacts of process development and automation in the social and health services of wellbeing services counties was carried out, commissioned by Digital Workforce Oy, by management consultants Pekka Manninen (M.Sc. Eng.) and Markku Suokas (specialist physician, MBA).
The study included the wellbeing services counties of Kanta-Häme, Ostrobothnia, Lapland, and South Karelia. Respondents were from the management teams of the wellbeing services counties, primary healthcare, specialized medical care, social services, and administrative and support services.

My own comment. Due to cuts, the SOTE (Social and Health Services) areas need savings. Furthermore, the architecture of Finland’s healthcare sector at a national level is unfortunate, and RPA can also be utilized as a ‘chewing gum fix’ for poor architecture, which is partly the case here.

Edit: Apparently, DWF’s study has also been published on the Hoiva & Terveys (Care & Health) website, which adds credibility to potential additional deals for the SOTE (Social and Health Services) areas.

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@Joni_Gronqvist volunteered to host an earnings live stream tomorrow morning starting at 7:55 AM, so come join us online to listen to live comments on the fresh results! :muscle:

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I believe that DWF will grow steadily based on RPA, but AI Agents might help, if successful, especially with international expansion.

DWF is still quite small (approx. 200 people), but at least it markets effectively, e.g., in the UK, so significant organic growth is possible if successful.

Strategy Director Karli Kalpala writes extensively for international media and has registered as a speaker for events related to the development of UK insurance companies. Such activity is naturally important for marketing.

In my previous messages, I speculated that DWF should hire its own Python coders to code integration adapters (actions) for AI Agents. This way, DWF can integrate Agents into very different customer systems.

Now DWF is hiring several AI Agent developers. The goal is to establish a small development team under CTO Antti Karjalainen. AI Agent Developers (all seniority levels) - Digital Workforce One could also think that this is an expansion of sema4.ai’s development team, because while sema4.ai does basic development work, DWF’s team directly handles customer projects and can provide feedback to sema4.ai’s R&D team.

In my opinion, there are risks in the breadth of AI Agent use cases precisely because of their LLM-based nature, but investing in their own development team suggests that, at least for now, it looks promising.

At least on paper, the “technical leadership” at DWF seems competent. A tech company’s strategy needs to sufficiently understand technology, and Karli Kalpala & Antti Karjalainen seem to bring this strategic comprehensive expertise.

Well, on Wednesday we’ll hear how this reflects in orders.

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Since I almost forgot myself, let’s remind everyone here again: today at 7:55 AM, Finland’s leading IT display terminal industry analyst @Joni_Gronqvist will start the DW-live show. :sunglasses:

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Joni’s comments:

https://www.inderes.fi/analyst-comments/digital-workforce-q424-pikakommentti-pienia-yllatyksia-molempiin-suuntiin

DWF did report an adjusted EBITDA of €0.3 million for Q4, which was in line with Joni’s expectations, but @Joni_Gronqvist has only recorded €0.1 million here?

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This is really cheap for a company that, to some extent, rides the AI wave, is already profitable, and growing. Of course, it’s a service company, and its competitive advantages are probably thin. But still.

Hesuli (Helsinki Stock Exchange/a specific stock) now offers good opportunities if the economy starts to turn around. DWF had a turnover of as much as 20k EUR today :roll_eyes:

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CEO Jussi Vasama was discussing with Joni after the Q4 releases. :slight_smile:

Digital Workforce’s revenue grew in Q4, driven by recurring revenue services, and the adjusted result was in line with expectations. The company’s Board of Directors proposed paying an additional dividend of 0.06 euros in addition to the 0.03 euro dividend.

Topics:

00:00 Start
00:09 Q4 main points
01:46 Healthcare business development by country
02:32 Restructurings
03:13 New CTO and strategic partnership with Sema4.ai
05:51 Change in dividend policy
07:33 Sales pipeline outlook
09:21 Guidance
09:54 Investment plans
11:11 Main points of strategy update
14:05 Acquisitions

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