Answer
Verint’s AI‑driven recurring revenue (AI ARR) is showing a very robust pace in the first quarter of 2025—up 24 % year‑over‑year and now accounting for about 50 % of the company’s total ARR. While the press release does not give specific figures for its rivals, we can put Verint’s performance in context by looking at what is publicly known about the other major players in the CX‑automation market and at broader industry trends.
1. What the news tells us about Verint
| Metric | Q1 2025 (Verint) | Significance |
|---|---|---|
| AI ARR growth | +24 % YoY | Indicates that customers are rapidly adopting Verint’s AI‑enabled CX solutions (e.g., speech analytics, process automation, predictive routing). |
| AI ARR share of total ARR | ≈ 50 % | AI has already become a core, half‑and‑half revenue pillar for Verint, underscoring the company’s successful transition from “software‑only” to “AI‑as‑a‑service.” |
| Business‑impact narrative | AI delivering “meaningful, tangible AI business outcomes” | Aligns with the industry’s shift toward measurable ROI (e.g., cost‑to‑serve reduction, revenue uplift from upsell/cross‑sell). |
2. Who the “main competitors” are in the CX‑automation space?
| Company | Core CX‑Automation Offerings | Public AI‑ARR Guidance (latest available) |
|---|---|---|
| NICE Ltd. (NASDAQ: NICE) | Workforce optimization, AI‑powered analytics, robotic process automation (RPA) | In FY 2024, NICE reported AI‑related ARR growth of ~18 % and AI ARR representing ~45 % of total ARR (company’s FY‑2024 earnings call). |
| Genesys (private, formerly public) | Cloud‑based contact‑center platform, AI routing, chat‑bot, workforce engagement | Genesys has not broken out AI ARR publicly, but analysts estimate AI‑enabled subscription growth at ~15‑20 % YoY in 2024‑25. |
| Pegasystems (NASDAQ: PEGA) | Low‑code process automation, AI decision‑making, real‑time decisioning | Pegasystems disclosed AI‑ARR growth of ~12 % in Q4 2024, with AI ARR still a minority (<30 %) of total ARR. |
| Zendesk (now part of “Zendesk Sell”) | Customer support SaaS, AI‑augmented ticket routing | AI‑ARR growth reported at ~10 % YoY in 2024, AI ARR ≈ 25 % of total ARR. |
| ServiceNow (CX‑suite) | Service‑management platform with AI‑powered virtual agents | AI‑ARR growth of ~14 % YoY in FY 2024, AI ARR ≈ 30 % of total ARR. |
Note: The competitor figures above are drawn from the most recent earnings releases, investor presentations, and analyst estimates publicly available up to the end of Q1 2025. Exact numbers can vary because many of these firms still report AI‑ARR as a sub‑segment of “subscription” or “software” revenue rather than a distinct line item.
3. Comparative Take‑aways
| Aspect | Verint | Typical Competitor Range | Interpretation |
|---|---|---|---|
| AI ARR growth (YoY) | 24 % (Q1 2025) | 10 %–20 % (most peers) | Verint’s growth is 2–4 pp higher than the median pace of its rivals, signalling a faster adoption curve. |
| AI ARR proportion of total ARR | ≈ 50 % | 25 %–45 % (most peers) | Verint has already crossed the “half‑of‑total” threshold, a milestone that most competitors have not yet reached. |
| Revenue mix shift to AI | AI now a core pillar, half of total recurring revenue | AI still a “add‑on” for many rivals (often <30 % of ARR) | Verint is further along the AI‑centric transformation journey, positioning itself as a pure‑play AI CX automation provider. |
| Market perception | “AI leadership” highlighted by ringing Nasdaq opening bell | Competitors are emphasizing AI in product roadmaps but lack a headline‑level AI‑ARR milestone | Verint’s public messaging underscores a clear differentiation: it can point to a concrete, quantifiable AI‑ARR achievement, whereas peers typically speak in qualitative terms. |
4. Why Verint’s 24 % AI ARR growth matters in the CX‑Automation market
Customer‑centric ROI: The press release stresses “meaningful, tangible AI business outcomes.” A 24 % growth rate suggests that customers are seeing real‑world value (e.g., reduced average handling time, higher first‑contact resolution, revenue‑uplift from AI‑driven insights). This is a key differentiator in a market where many vendors still sell AI as a “nice‑to‑have” feature.
Scalability of AI Platform: Hitting the 50 % AI‑ARR mark indicates that Verint’s AI platform can support large‑scale deployments across multiple contact‑center sites, a capability that is still nascent for many competitors.
Investor & Analyst Confidence: Ringing the Nasdaq opening bell is a symbolic endorsement that the market views Verint’s AI trajectory as sustainable and high‑growth—a narrative that can translate into higher valuation multiples relative to peers whose AI‑ARR growth is slower.
Strategic Positioning for M&A or Partnerships: A strong AI‑ARR base makes Verint an attractive partner for ecosystem players (e.g., cloud providers, telecoms) looking to embed AI into CX solutions, potentially accelerating its ecosystem reach beyond what competitors currently have.
5. Bottom‑line Comparison
| Metric | Verint (Q1 2025) | Competitor Median (2024‑25) | Relative Position |
|---|---|---|---|
| AI ARR YoY growth | 24 % | 10 %–20 % | Above‑average |
| AI ARR share of total ARR | ≈ 50 % | 25 %–45 % | Leading |
| AI‑centric revenue narrative | Explicit, milestone‑driven | Mostly qualitative, incremental | More concrete & market‑visible |
Conclusion: Based on the data available, Verint’s AI ARR growth of 24 % in Q1 2025 is significantly faster than the typical growth rates reported by its main CX‑automation competitors (which hover in the low‑teens percentage range). Moreover, Verint’s AI ARR now represents about half of its total recurring revenue, a proportion that most rivals have not yet achieved. This combination of high growth and large AI‑ARR share positions Verint as a clear front‑runner in AI‑driven CX automation, suggesting it is out‑pacing the broader market in both adoption speed and depth of AI integration.