RingCentral's AI Innovation: Driving Growth & Market Leadership in Q2 2025

Drivers of Strong Traction for New AI Products at RingCentral

1. Outstanding Demand and Market Leadership in Business Telephony

   • RingCentral is a strong leader in business telephony, making it a natural choice for customers looking to integrate AI into their workflows.
   • The company is positioned "as upstream as it gets" in customer interactions, handling primary communication modes (voice calls and text messages), which allows seamless AI integration.

2. Unique Position to Deploy AI Across Customer Journeys

   • RingCentral services are often the first point of contact between businesses and their customers, enabling deployment of AI agents from the onset and throughout the customer journey.
   • This unique positioning allows AI to be applied before, during, and after calls, enhancing customer experience and operational efficiency.

3. Robust AI Product Portfolio and Innovation Investment

   • Significant R&D investment of over $0.25 billion annually, with a growing share dedicated to AI.
   • New AI-first products such as AI Receptionist (AIR), RingCX (AI-first contact center), and RingSense (AI conversation analytics) are already contributing meaningfully to ARR growth.
   • These products are designed to be easy to deploy, fit for purpose, and require no complex IT expertise, facilitating rapid adoption across customer sizes.

4. Strong Customer Adoption and Use Cases

   • AIR customers grew from 1,000 to over 3,000 in a short period, indicating strong demand.
   • Use cases include routing calls, never missing important calls, and providing digital employees that improve customer engagement and operational efficiency.
   • Examples include Access Mental Health increasing patient intakes by 60%, Endeavor Capital boosting sales by 40%, and a top private university achieving 52% per seat cost savings.

5. Strategic Partnerships and Channel Expansion

   • Extended agreements with NiCE CXone and expanded partnership with AT&T, which is adding RingCentral’s AI-first products to its portfolio.
   • These partnerships broaden market reach and validate the AI product suite’s value.

6. Integration and Platform Strength

   • Deep integration with Microsoft Teams and other platforms enhances product appeal, especially for larger enterprises.
   • RingEX for Teams accounts are growing strongly, doubling monthly active users year-over-year.

7. Financial Strength and Growth Momentum

   • The company is achieving double-digit growth quarter-over-quarter in AI products.
   • New AI products are on track to reach $100 million ARR in the year, contributing a meaningful portion of overall revenues in the coming years.

Summary

RingCentral’s strong traction in new AI products is driven by its leadership in business telephony, unique positioning at the front line of customer communications, substantial investment in AI innovation, a robust and easy-to-adopt AI product portfolio, strategic partnerships, and strong integration capabilities. These factors combine to deliver tangible business outcomes for customers and fuel rapid adoption and revenue growth in the AI segment.