Freshworks’ Q2 announcements show how enterprise AI is supporting the evolution of its CX business, from agent assistance towards more autonomous service.
By investing in Freshdesk Omni, the vendor is creating a unified route for over 90% of customers to add AI, voice and conversational support without replacing their core service system.
As a result, CX leaders should view this as a prompt to map where disconnected tools are limiting their ability to automate routine demand and maintain a consistent CX.
Dennis Woodside, CEO and President at Freshworks, explained how the investment reflects the company’s effort to consolidate its CX offering.
“We’ve made a big investment in the CX product in moving to our new Freshdesk Omni. We had multiple products in the past,” he said.
“Now a customer can get onto one product and seamlessly upgrade from an email-based ticketing experience to one involving chat and conversational and voice and one involving AI.”
How Its 90% Migration Plan Unlocked Expansion
Having reshaped its CX platform, Freshworks celebrated the migration of customer enterprises into its latest platform consolidation, Freshdesk Omni.
“As of Q2, over 90% of Freshdesk customers have migrated to the new platform,” Woodside announced.
By establishing a single platform where organizations can progressively add competitive capabilities without replacing their core customer service system, this addresses fragmentation within service environments.
Using separate tools for different channels often makes it difficult to build a unified customer view, maintain consistent workflows, or scale automation across an organization.
Furthermore, the company ended the quarter with $400MN in CX ARR, reflecting a more disciplined approach focused on sustainable growth and expansion within its target market.
Tyler Sloat, COO and CFO at Freshworks, suggests its consolidated CX platform is resonating with larger mid-market organizations seeking to add channels and AI capabilities without complexity.
“The Freshdesk Omni platform is demonstrating strong market fit for our mid-market ICP,” he said.
This enables Freshworks to better serve organizations that need a unified customer service platform with room to expand into additional channels and AI capabilities, without introducing the complexity often associated with larger solutions.
By also concentrating its sales efforts on organizations where its unified architecture and AI roadmap can deliver long-term value, this will help Freshworks grow its customer base.
Woodside noted:
“The new business acquisition motion is focused very much on call it the higher end of SMB and mid-market.”
This competitive differentiator offers customers a clear path from basic ticket management to omnichannel engagement and AI-powered service within the same platform.
Autonomous Support is Increasing
From a customer perspective, Freshworks AI strategy from agent assistance toward autonomous customer support saw strong adoption in Q2.
“Over 7,000 customers are paying for an AI SKU,” revealed Woodside.
“Our Copilot attach rate on larger deals exceeds 70%.”
As AI becomes a standard part of larger customer deployments, it’s Freddy AI Copilot created more than 71% of new enterprise deals, now aiming to position it as an independent customer resolution tool, particularly for routine email support.
“Agents using Freddy AI Copilot handle 50% more tickets. That means they are 50% more productive,” he explained.
“Freddy AI Agent deflection rates average 50% and reach as high as 80% for mature deployments.”
AI is now absorbing a significant share of customer enquiries before they reach human agents, with Freshworks own AI email agent now handling 30% of internal billing queries from start to finish without employee intervention.
Additionally, Freddy deployments also created 76% lower resolution times, 41% faster first response times, and 65% ticket deflection, illustrating strong operational improvements.
The company’s Q2 AI strategy now allows support teams to focus on more complex, higher-value customer interactions.
Freshworks AI Moves Beyond the Inbox
This strategy also included making customer service more proactive and measurable with using automation and unified data.
Freshdesk Omni customers are already reporting improvements of up to 97% first-contact resolution, 60% higher agent productivity, and 95% CSAT for measurable value.
Now accelerating beyond early experimentation, CX AI agent sessions and conversations on Freshdesk Omni increased 60% QoQ and more than fivefold YoY.
In one customer example, Fleet Claims, reportedly used Freshworks’ email AI capabilities to increase ticket deflection with automation for better responses.
Woodside highlighted the results:
“They have been able to use our email AI to resolve about 10% of their tickets without any agent involvement and amplified the importance of being able to respond faster than ever, especially outside business hours.”
Furthermore, the release of new tools such as Freddy AI Insights uses AI to identify trends, highlight issues and recommend improvements without relying manual analysis.
In Q2, Freshworks shifted its focus toward a service model where AI handles predictable requests, surfaces emerging problems, and enables human agents to focus on complex customer needs.
Freshworks Key Earnings Results
Freshworks’ Q2 performance underscored that enterprise AI remained its primary growth engine, with growing adoption of Freddy AI helping drive customer expansion, platform demand and operational momentum across the business.
- Total revenue increased to $237.4MN, up 16% YoY; 15% on a constant-currency basis
- 1,746 customers contributed more than $100,000 in ARR, up 25% YoY
- 4,091 customers contributed more than $50,000 in ARR, up 18% YoY
- 25,356 customers contributed more than $5,000 in ARR, up 6% YoY
