Since we published our first Conversational Intelligence Intelliiview report in April 2020, the market for purpose-driven analysis of conversational content has grown rapidly. Spanning speech analytics and customer-agent interactions to agent performance and sales optimization, Conversational Intelligence (CI) solution providers have actively pitched their CX value in achieving business results.

As AI, automation, and advanced LLMs proliferate within contact center operations, the CI market is at a crucial juncture. Some companies are facing an existential moment as they struggle to differentiate themselves. Others have valuations that are perhaps considered too steep when compared to current financial realities. And larger CCaaS platform providers are increasing competition by expanding technology footprints for agent coaching and workforce planning.

Two recent acquisitions signal a potential looming consolidation and show possible exit strategies for CI technology specialists.

In October, Verint quietly acquired Cogito, a Boston-based provider of real-time coaching and conversation insights, for $38.2 million. Cogito’s technology, which utilizes over 200 acoustic and linguistic signals in real-time to improve customer interactions, has already been incorporated into Verint’s CX/EX Scoring Bot. This is Verint’s fourth acquisition this year and underscores their commitment to AI-driven CX automation and enhancing agent performance capabilities.

Calabrio Bolsters Software with Echo AI

Meanwhile, workforce performance provider Calabrio announced that it has acquired Echo AI, a company that specializes in CX intelligence and agent performance. Echo AI’s technology analyzes conversations across multiple channels in order to build customizable quality profiles. These skills help increase conversions, improve bot and agent interactions, reduce costs, and provide business insights. The acquisition reflects a growing use of AI and automation to improve contact center management and provide the right data at the right time to inform decisions.

The enhanced offerings for both Verint and Calabrio represent the next incremental step in getting technology into the hands of workforce planners, quality analysts, coaches, and supervisors. Increased investment in AI technologies, and a focus on developing more comprehensive solutions at a global scale, will go a long way in helping brands and contact centers achieve their overall strategic goals.

But these acquisitions, and overly high valuations, intensify pressure among technology specialists as they look to secure more funding or seek to be acquired themselves. (Cogito, for its part, had raised some $186 million across 17 funding rounds; Echo AI, formerly known as Pathlight, had secured $35 million in funding from Kleiner Perkins and other investors.) Some companies may adapt and evolve into specialized niche areas or target specific industries. Either way, CX organizations are finding useful opportunities to leverage conversation insights with more market changes, or consolidation, likely on the horizon.

Categories: Conversational Intelligence, Intelligent Assistants, Articles

Tags: Analytics, AI, conversational ai, M&A