International Paper backs frontline AI platform Relay with $36 million investment

Bridging the Gap on the Mill Floor

The paper and packaging industry has historically struggled with a persistent blind spot: the frontline workforce. While corporate offices run on advanced analytics and predictive models, mill floors often rely on analog radios, manual shift logs, and fragmented communication. International Paper is moving aggressively to close this gap, leading a $36 million funding round in Relay, a voice-first operational intelligence platform designed specifically for physical operations.

This latest capital injection pushes Relay’s total funding past the $90 million mark. The round, which was significantly oversubscribed and saw participation from Cerity Partners, Harmonic Growth Partners, and Thayer Investment Partners, signals a critical shift in how heavy industry views frontline technology. It is no longer just about upgrading machinery; it is about connecting the human element to the digital ecosystem.

Turning Radios into AI Assistants

Relay essentially turns the traditional two-way radio into an AI-powered assistant. Workers simply push a button to talk, and the system automatically transcribes, translates across 35 different languages, and routes the data to the appropriate operational systems. For a sector like corrugated packaging and pulp manufacturing, where ambient noise is deafening and safety protocols are paramount, this is far more than a marginal software upgrade. It is a fundamental change in how data is captured on the floor.

Keith Townsend, Group Vice President of Packaging Solutions North America at International Paper, highlighted that clear communication in extremely loud environments is foundational to their operations. IP isn't just writing a check; they are actively deploying the technology across their own demanding industrial environments. The system accelerates responses to safety and maintenance alerts, strengthens standard operating procedures, and streamlines shift transitions—a notorious bottleneck in 24/7 mill operations where critical knowledge is often lost between departing and arriving crews.

Strategic Alignment for 2026

This investment aligns seamlessly with International Paper's broader 2026 manufacturing strategy. Following its massive restructuring and the historic integration of DS Smith throughout 2025, IP is focused on optimizing its footprint and modernizing its industrial technology stack. Processing over one billion data points weekly across 10,000 sites globally, Relay provides the kind of granular, real-time visibility that legacy paper manufacturers desperately need to optimize machine uptime, reduce waste, and protect their workforce in an era of skilled labor shortages.

Investing in the tools that actually touch the mill floor is the most direct route to operational excellence, and IP’s dual role as investor and customer validates the maturity of voice-driven AI in heavy industry. Will other packaging giants follow suit and finally replace their analog communication systems with connected intelligence?

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