Bookings for NICE AI Tools up by 134%

In NICE’s latest earnings call, CEO Barak Eilam and CFO Beth Gaspich offered a detailed look at how the company’s innovations, particularly in AI and CX, are reshaping the contact centre industry.

From the surge in demand for AI-driven solutions to the rise of CXone as the go-to cloud platform for customer service, NICE is cementing its leadership in the rapidly evolving CX landscape.

AI Driving Customer Experience Transformation

NICE’s strong results were driven by the growing adoption of AI, which continues to play a central role in the company’s strategy. Eilam emphasised that NICE is leading the way in functional AI for customer service, particularly through its flagship CXone platform.

“Enterprises, after exploring initial ways to leverage GenAI to boost productivity and reduce costs, are now adopting a more mature and systematic approach,” Eilam explained. He noted that many companies had become disillusioned with generic AI solutions, finding that they failed to deliver the desired results.

NICE’s approach, however, is different. The company’s deep domain expertise and robust data assets allow it to offer AI solutions that are truly effective in the customer service space.

This shift is driving demand for the company’s AI products, with AI-related revenues soaring by 38% in Q2 alone. NICE’s AI tools, such as Copilot and Autopilot, have seen tremendous adoption, with bookings for these solutions increasing by 134% in the quarter.

Eilam shared examples of large-scale AI deals that highlight NICE’s growing influence in the CX market. In one instance, a global hotel chain adopted NICE’s Autopilot solution to enhance its digital transformation efforts.

“They value our extensive data repository and thousands of CX AI models, which provided the precision they needed,” Eilam said. In another seven-digit deal, a regional energy company selected CXone for its AI-driven capabilities, replacing non-integrated on-premise infrastructure.

CXone: Consolidating the Cloud for Customer Service

At the core of NICE’s success is CXone, the company’s all-in-one cloud platform designed to handle the full spectrum of customer service interactions.

CXone integrates AI seamlessly into every touchpoint, allowing for end-to-end automation and orchestration. “CXone is the go-to platform for enterprises looking to standardise on a platform that not only transitions them to the cloud but also converges all customer service workflows,” Eilam said.

The momentum behind CXone is clear. Q2 saw a record number of bookings for the platform, with strong demand across all market segments, particularly from large enterprises.

These customers are increasingly turning to CXone to replace outdated on-premise solutions and consolidate multiple point solutions into a single, cohesive platform.

This is evidenced by the five eight-digit deals signed in Q2, including one with a large APAC organisation that was previously using legacy on-premise providers. CXone stood out as the only platform capable of meeting their extensive operational needs.

NICE’s focus on portfolio deals – where customers adopt multiple solutions within the CXone platform – has proven to be a major driver of growth. “We signed five eight-digit ACV deals in Q2,” Eilam noted.

“These deals will power durable value for NICE over a long period, due to the platform stickiness and its ability to drive long-term upsell and cross-sell opportunities.” The power of the platform, coupled with its flexibility and scalability, ensures that customers can continue to expand their use of CXone over time.

AI Innovation and Adoption: Speeding Ahead

Eilam emphasised that AI innovation at NICE is advancing at an unprecedented rate. “I haven’t experienced in my career any technology that shifted from ideation to production and adoption as fast as AI,” he remarked.

He pointed to the rapid adoption of specific use cases, such as auto-summary capabilities, which have already been embraced by over 80 customers since their launch in late 2022.

NICE’s AI strategy is not just about quick wins, however. The company is investing heavily in functional AI that can deliver long-term value by embedding itself deeply into customer service workflows. “AI now plays a very significant part in our win rate and us taking market share from the competition,” Eilam stated.

By focusing on domain-specific AI that integrates seamlessly with CXone, NICE is positioning itself as the leading provider of AI-powered customer service solutions.

The shift to the cloud among large enterprises is no longer in question. “I don’t see customers debating or questioning whether they need to move to the cloud,” Eilam said. “That belongs to several years ago. Today, it’s all about when and how fast they can do it.”

For NICE, this shift is a major opportunity. Large enterprises are not just moving to the cloud for the sake of modernising – they are doing so to unlock the full potential of AI.

CXone is uniquely positioned to facilitate this transformation, offering a robust cloud infrastructure that integrates AI at every level. This combination of cloud and AI capabilities is helping NICE win more large-scale deals and expand its market share.

Growth, Profitability, and Strategic Acquisitions

NICE’s financial performance reflects its strong position in the market. The company reported $664 million in revenue for Q2, a 14% increase year-over-year, with cloud revenue growing by 26%. Operating income grew by 19%, and operating margins expanded to 30.4%.

These impressive metrics are bolstered by NICE’s strategic investments in AI and cloud solutions, which are driving both top-line growth and profitability.

The company’s acquisition strategy is also playing a key role in its expansion. The recent acquisition of LiveVox, a cloud-based contact centre provider, has already begun to yield results. “We continue to see an increasing pipeline of cross-selling and upselling opportunities,” CFO Beth Gaspich noted.

She highlighted the success of integrating LiveVox’s capabilities with NICE’s broader platform, which is creating new revenue streams and enhancing the company’s overall product offering.

What This Means for Contact Centres

For contact centre executives, the message from NICE’s Q2 earnings call is clear: AI and cloud technology are no longer optional – they are essential for staying competitive in today’s market.

NICE’s CXone platform offers a comprehensive solution that not only modernises contact centre infrastructure but also provides the tools needed to deliver superior customer experiences through AI-driven automation and data integration.

Additionally, the scalability of CXone ensures that as customer demands evolve, contact centres can continue to grow and adapt without the need for costly infrastructure overhauls.

Author: James Groves
Reviewed by: Xander Freeman