During an interview with CNBC-TV18 at the World Economic Forum in Davos, Woodside indicated that the company’s AI solutions are empowering both customers and employees to work more swiftly and efficiently.
“The AI we offer accelerates the work of customer support and IT teams, enabling our customers to achieve faster and more efficient growth,” Woodside noted. “What sets us apart is how user-friendly our products are. You can get started quickly, yielding rapid value.”
The AI suite from Freshworks, named Freddy, has experienced robust adoption since its inception, with over 6,000 customers subscribing to their AI solutions. Woodside mentioned that clients are managing to deflect around 50–60% of incoming queries using AI, which allows human employees to concentrate on more valuable tasks. “We have discovered that AI leads to greater customer satisfaction compared to human involvement,” he remarked. Some organizations have transformed AI agents into tools that generate revenue, showcasing the technology’s flexibility.
Internally, Freshworks has implemented more than 70 AI tools across various functions, including support, recruiting, and employee services. Woodside emphasized that AI has become vital for managing high-volume processes like reviewing 10,000 resumes weekly, enabling the company to concentrate on the right candidates and expedite the hiring process. “AI has fundamentally changed our business operations. This has driven profitability and accelerated revenue growth, and we’re just getting started,” he stated.
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As Freshworks aims to broaden its scope beyond small and medium-sized enterprises to larger corporations, the company is harnessing its product agility to compete against established players. “Our product has been developed more recently than those from major competitors… You don’t require months, which is the norm in large enterprise software deployments, to start seeing results,” Woodside explained. Tata Consumer and Mahindra are among the major clients already utilizing Freshworks’ platform to engage millions of customers in India.
Freshworks currently serves over 75,000 businesses globally, with around 10,000 mid-market and enterprise clients. Woodside noted that most of the company’s growth is derived from these larger accounts, highlighting how AI-driven efficiency and simplicity provide a competitive advantage in a packed market.
Below is the excerpt from the interview.
Q: Here at Davos, if you’re not talking Trump, you’re talking AI. So I want to understand from you what you’re doing differently in this now very competitive space.
Woodside: The nature of work is evolving for all of our 75,000 customers today. The way work will be conducted in five years will be drastically different. The AI we provide enables customer support and IT teams to complete tasks much quicker, allowing our customers to grow more efficiently and rapidly. What distinguishes us is the ease of use of our products. You can hit the ground running quickly, achieving rapid value. That’s how we compete with larger companies.
Q: The conversation has also shifted towards agents, with many believing this could be the next significant wave in AI implementation. You’ve got Freddy, so take us through the deployment and uptake.
Woodside: We have over 6,000 customers who are paying us for AI. We launched an agent-focused suite, featuring a set of pre-built agents across four distinct industries, in November. The response to these products has been remarkable. Our customers are managing to deflect 50–60% of their incoming inquiries using AI, and customer satisfaction levels are higher than those with human involvement. Humans are empowered to tackle more complex questions and engage in higher-value work. Some clients have even turned these agents into revenue-generating sellers, showcasing the varied applications of AI in business.
Q: When we discuss AI and agents, what implications does this have for Freshworks’ business outcomes? Your losses have considerably narrowed, so in terms of profitability and revenue growth, what do you foresee?
Woodside: We currently have over 70 internal deployments of AI tools. Some are third-party solutions while others are developed by us. Our customer support teams utilize our own products for handling inquiries from 75,000 customers. AI is also applied for employee questions, recruitment, and throughout the business. We receive 10,000 resumes weekly due to our global hiring, and we leverage AI to pinpoint the right candidates and guide our teams effectively. AI has completely reshaped our business operations. This transformation has facilitated profitability and accelerated revenue growth, and we’re merely at the beginning. Considering where business will be in five years, a significant amount of work will be managed by AI agents. That’s what excites us.
Q: I want to discuss how you differentiate yourself from the major players, particularly as you start catering to larger enterprises. The focus has historically been on SMBs, but now you are shifting towards larger enterprises. How do you compete with giants like Salesforce?
Woodside: We already have major customers today. Tata Consumer employs our services to engage millions of consumers in India, and Mahindra also uses us. Our product has been developed more recently than those of long-established players. It’s designed to be quick to implement. You don’t need months, which is customary in large enterprise software deployments, to begin generating value. It also requires fewer resources to maintain and is easier to train users on, allowing them to utilize it much more swiftly. All of this has provided us an advantage as we enter larger accounts. The majority of our growth originates from larger accounts. We serve over 75,000 businesses globally, and about 10,000 of these are mid-market and enterprise companies, employing between 500 and 20,000 people and generating around a billion dollars in revenue.
Watch the accompanying video for the complete conversation.
