the HMRC win<\/a>.<\/p>\nWorking with Capgemini, NiCE will provide its unified CX AI platform to help the UK tax authority modernize citizen engagement.<\/p>\n
NiCE described the agreement as an eight-digit ACV deal and a nine-digit TCV deal, its largest ever for both CXone and Cognigy.<\/p>\n
That is a major statement of intent from a public-sector organization with a vast, highly regulated service operation. It also offers a useful counterpoint to the idea that agentic AI is largely limited to low-risk customer service use cases.<\/p>\n
Meanwhile, NiCE said it had also won an eight-digit ACV agreement with a large US healthcare organization. The customer selected CXone and Cognigy, with Accenture involved in the deployment, to advance customer engagement on a unified AI platform.<\/p>\n
Production AI Is Growing, But the Conversion Gap Remains<\/p>\n
NiCE was also keen to stress that it is seeing real AI deployments, rather than a collection of proof-of-concepts.<\/p>\n
Russell said that \u201cvirtually all\u201d of the company\u2019s AI revenue is now coming from production deployments. He also stated that nearly every enterprise CXone deal during the quarter included AI.<\/p>\n
There are examples to support the claim:<\/p>\n
TripAdvisor, an existing CXone customer, reportedly moved from concept to its first automated voice calls in two and a half months. NiCE said the company\u2019s AI agent has achieved a 90% customer sentiment score, compared to 71% for human agents.<\/p>\n
GXBank, Malaysia\u2019s first operational digital bank, has built its CX operation on CXone. According to NiCE, the bank is achieving 95% customer satisfaction and 95% first-contact resolution, while AI autonomously resolves 70% of chat interactions.<\/p>\n
Those are eye-catching figures. However, they are vendor-reported customer examples, and NiCE did not provide broader data on average containment rates, implementation timelines, escalation levels, or the number of CXone customers now running agentic AI at scale.<\/p>\n
The Q&A also exposed a timing issue.<\/p>\n
An analyst noted that NiCE\u2019s net-new AI annual recurring revenue appeared lower than in the same quarter last year, despite the company reporting record AI bookings.<\/p>\n
Beth Gaspich, CFO of NiCE, attributed this to \u201cthe conversion of timing,\u201d adding that the company expects expansion to show up more clearly in ARR during the second half.<\/p>\n
For contact center leaders, this is less a financial footnote than an implementation reality. Major AI commitments are being made, but enterprises are still working through the prerequisites needed to put those commitments into action.<\/p>\n
Competition Is Intensifying<\/p>\n
It\u2019s no secret that NiCE is operating in a very competitive market.<\/p>\n
Indeed, during the call, an analyst asked whether the company was encountering competition from Genesys, AI-native vendors such as Sierra and Decagon, and Salesforce\u2019s Agentforce Contact Center.<\/p>\n
Russell was candid in his response, stating: \u201cThe answer is probably all of the above.\u201d<\/p>\n
NiCE\u2019s counterargument rests on platform breadth. Cognigy is now fully native to CXone, with what the company describes as a single application, shared data layer, and deployment experience.<\/p>\n
Russell argued that NiCE is uniquely placed to orchestrate a hybrid workforce across voice, digital channels, human agents, and AI agents.<\/p>\n
He also emphasized openness, stating that its platform can work with proprietary, open-weight, and future models rather than tying customers to one large language model.<\/p>\n
That may prove persuasive, particularly for large organizations looking to avoid another standalone AI tool. Yet it will not remove the pressure from AI-native specialists, which are often able to move quickly, or from enterprise incumbents that can bundle AI capabilities into wider CRM and service platforms.<\/p>\n
A Strong Quarter, With an Important Caveat<\/p>\n
NiCE\u2019s Q2 call offered convincing evidence that large organizations are prepared to make serious CX AI investments.<\/p>\n
The HMRC and healthcare wins, alongside TripAdvisor and GXBank\u2019s results, show that AI is moving into substantial service environments. NiCE also said its AI ARR rose 52% year over year and that AI now represents 15% of cloud revenue.<\/p>\n
Still, the message beneath the numbers is more nuanced.<\/p>\n
AI bookings may be rising, but data readiness, governance, operating-model changes, and deployment timing are still determining when customers see value.<\/p>\n
NiCE has the deals. The next test is how quickly those deals become repeatable, measurable CX outcomes at enterprise scale.<\/p>\n","protected":false},"excerpt":{"rendered":"NiCE has plenty to celebrate after its second-quarter earnings call, but the vendor also revealed the work customers…\n","protected":false},"author":2,"featured_media":131785,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[179,509,7493,25,512,806,807,645],"class_list":["post-131784","post","type-post","status-publish","format-standard","has-post-thumbnail","category-agentic-ai","tag-agentic-ai","tag-agentic-ai-in-customer-service","tag-agentic-artificial-intelligence","tag-artificial-intelligence","tag-automation","tag-call-contact-center-software","tag-ccaas","tag-customer-engagement-platform"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/131784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=131784"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/131784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/131785"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=131784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=131784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=131784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}