Freshworks bets on agentic AI to drive enterprise growth in 2025
'We've been doing a lot of work in generative AI (GenAI) and are using about 40 foundation models. We are using a lot of those models to build out our own stack and then make it accessible to the people. By the end of 2025, we're going to launch a lot of agentic AI services as well,' Shelton Rego, vice president - India business at Freshworks, told ET.
He was speaking on the sidelines of Freshworks' experience event in Mumbai, which showcases the company's latest tools aimed at improving customer, employee, and agent interactions.
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Freshworks, which began developing AI capabilities in 2019—well before the current hype cycle—has already rolled out GenAi copilots across its product suite, he said. In the third quarter of 2024 alone, it added 2,400 new Freddy AI copilot customers globally.
The company is now focussed on expanding into full-fledged agentic AI—where autonomous agents can retrieve information, take actions, and soon execute multi-step workflows across domains.
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'On the CX side, we have agents where we are already seeing close to 40-50% deflection where they are able to independently answer the questions and resolve customer queries,' said Sreedhar Gade, vice president, engineering and responsible AI at Freshworks.
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"In the next, maybe two quarters, we will be able to execute complex actions on behalf of a user request like booking an airplane ticket or a holiday package,' Gade added.
This evolution in AI capabilities is also expected to influence how the company prices its products, moving away from subscription- or usage-based models toward value-based pricing.
'Instead of talking about 1,000 bot sessions, I would ask how many resolutions have you made? Or how many customers said thumbs up, indicating their problem was solved, versus how many times the issue was handed off from AI to a human agent? We can translate it that way,' Gade said.
Freshworks currently works with more than 73,000 customers in over 120 countries across multiple verticals, including ecommerce, logistics, financial services, auto and manufacturing.
India continues to play a key role in Freshworks' AI strategy—not just as a market, but as a centre for talent and product development.
'India is a strategic market also because of the talent pool that we have in AI here. A lot of the AI talent today, a large majority of that, sits in India. We see that a lot of customers are also ahead of the curve in their adoption of AI and technology. So, we see a lot of that potential in India as well," said Rego.
Freshworks reported a
19% year-on-year (YoY) increase in revenue
to $196.3 million for the quarter ended March 31, 2025, up from $165.1 million a year earlier, buoyed by higher operating efficiency and increased customer adoption.
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