A New Breed of Conversational AI is Leading to Voice Resurgence in Customer Service

Summary Bullets:

• Conversational AI is driving a major voice resurgence in customer service by improving the IP voice experience.

• Long call queues on account of human agents being thinly stretched across large call volumes have led to customer frustrations and poor CX, but modern versions of conversational AI are set to change that by taking away the frictions associated with voice.

It was believed that voice would diminish in value as digital channels started to emerge as an alternative to the voice channel. While messaging and chatbots offer cost and scale advantages, GlobalData’s research shows that voice continues to remain a vital channel for connecting with customers despite the frictions. Voice provides instant gratification and tends to be more straightforward to use as it does not involve navigating through messaging channels, websites and so and having to type messages. While the elderly demography tends to prefer voice due to greater familiarity, voice is seen to be popular even with the younger generation.

The modern versions of conversational AI are reinforcing the value of voice by taking away the frictions, leading to improved experience, at least for some use cases. Conversational AI is not new, but the older versions were highly programmed, rigid, and could only answer limited, non-interactive queries. Modern conversational AI relies on probabilistic models, making it highly interactive and capable of closely emulating human agents. This technology has given birth to virtual AI receptionists that handle calls, greet customers, carry out authentication, identify intent, and route calls. This eliminates long queues and grants customers 24/7 access. The value multiplies with real-time translation, allowing AI receptionists to speak multiple languages. This is a game-changer for diverse ethnic groups who do not speak English as a first language, especially when accessing critical local government public services where expressing needs in a native language is vital.

Driven by rapid tech advancements, conversational AI is expanding from basic receptionists into autonomous AI agents. These agents handle tasks like answering queries, booking appointments, and taking orders. To do this, they require robust technical foundations, integrating seamlessly with knowledge bases and CRMs (systems of record) to provide targeted responses. Linked to the right workflows, AI agents can check calendars to schedule medical visits or process restaurant orders. Combined with 24/7 availability and translation, this dramatically elevates the voice experience for customers. Furthermore, non-technical teams can easily build these bots in agent builder studios by simply describing the desired persona and goals, removing the need for complex coding. As 8×8 CEO Samuel Wilson noted at the company’s analyst summit this June, “The next billion voice numbers will go to AI agents.”

Despite the promise, architectural challenges remain. Latency is a primary hurdle; the traditional multi-step process (like speech-to-text) can create latency, leading to awkward pauses that disrupt conversational flow. Robust guardrails are also critical to stop AI from hallucinating false information, which carries severe financial and legal risks. Additionally, backend integrations can be clunky due to poorly documented APIs or failing connectors. Finally, the compute costs for generative (GenAI) and agentic AI remain high and can be prohibitive for many businesses. While agentic conversational AI is still in its developing stages, steady breakthroughs are addressing initial operational hurdles to gradually enhance the contact center voice experience. This ongoing progress will drive deeper adoption of the voice channel, counteracting previous assumptions that voice would decrease in value.

The quest for ever-more automation within customer contact solutions continues apace. There will always be scenarios where human-to-human conversations are the preferred and best option. But to enable companies to offer voice interaction at the scale that customers demand, AI will have to carry a significant share of the burden. GenAI- and agentic AI-powered conversational AI is fundamentally shifting the voice experience in contact centers and customer service.

Public Opposition to New Data Centers Disrupts but Doesn’t Derail US Facilities’ Expansion

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

  • As rapid advances in AI application development drive demand for more processing capacity, US-based cloud providers are investing heavily in building out facilities to support these deployments.
  • But not everyone is on board with expansion plans, with public criticism stalling some development efforts, forcing hyperscalers to pivot to new locations, often in more remote areas.

AI is changing the cloud landscape, creating the near-term need for a vast increase in processing power and storage space. Hyperscalers are responding with substantial facility construction plans. Just this year alone, Amazon Web Services, Google, and Microsoft Azure are pouring a total of $500 to $700 billion into extensions of their data center footprints. Given AI’s dominance in enterprise technology investment plans, this is a logical track. However, not everyone is on board with these aggressive development plans -and AI plays a role in that resistance.

Fifty-two percent of adults are more worried than excited about AI, according to results from a Pew Research Center survey of 3,488 adults fielded earlier this year. Those queried had trepidations related to AI about everything from job displacement and interference with human creativity to unreliable or even malicious output.

AI anxiety is translating into opposition to in-region data center expansion. A Gallup poll of 1,000 US adults conducted earlier this year, found that 71% of those surveyed are totally opposed to the building of new data center facilities used to support AI applications in their region. By comparison, 53% object to construction of a new nuclear energy plant – a perennially unpopular build in the US for decades.

Participants in the telephone survey cited several concerns related to the new data center expansion, primarily focused on resource consumption, cost, and quality-of-life impacts. Fifty percent said excessive resource requirements associated with these builds in areas like water and energy consumption along with secondary effects such as loss of farmland, wildlife, and deforestation are behind their resistance to facilities’ expansion in their areas. Twenty-two cited concerns about property values and increased traffic. Another 20 percent noted that new data centers might bring higher utility costs and cost of living expenses.

Localities are hearing and responding to this resistance to data center expansion. Due to regional complaints, more than $100 billion in facility buildouts was stopped or disrupted in just one quarter. Over 550 local governments have suspended new facility construction or stopped issuing new permits.

Industry observers warn that impeding expansion could have unintended harmful consequences, including hindering the establishment of effective cyber defenses against hostile adversaries and creating barriers to the development and deployment of technological innovations. But cloud providers have been adept at circumventing obstacles to expansion, finding locations in more remote areas that are more hospitable to new facility construction.

Hyperscalers and other cloud providers are targeting more rural areas in the South and Midwest, and more remote locales in states like Oklahoma, Maine, and Virginia. Nearly half of all new data center builds are in the south, with states like Texas being hot spots.

Google’s New Tools Support ‘Value Maxxing’ to Address Organizations’ Growing Concern Over AI ROI and Tokenomics

R. Bhattacharyya

Summary Bullets:

• After a period of ‘token maxxing,’ organizations are looking to reign in and better control inference costs.

• Instead, enterprises are now embracing ‘value-maxxing,’ which focuses on outcomes.
Last week, Google announced several enhancements to Gemini Enterprise designed to help enterprises obtain greater and faster ROI on their AI projects. The improvements address one of the biggest frustrations expressed by organizations today, namely that the benefits promised by AI are taking too long to realize. Companies are clamoring for domain specific solutions in order to speed the deployment, reduce the integration complexity, and increase the value obtained from AI projects. Additionally, business leaders are eager for better tools to help them manage AI costs. They are looking for improved visibility on token use and costs, more proactive spending controls, and more flexible payment options.

On Tuesday, August 25th, Google announced Gemini Enterprise for Financial Services and Gemini Enterprise for Legal. The industry-specific solutions include out-of-the box AI capabilities such as specialized agents that provide shortcuts for directing workflows, data connectors, and sector-optimized models. Reusable packages of instructions teach AI agents to perform specialized tasks that are customized to meet company-specific requirements; connectors link agents to internal systems and data while maintaining access controls; pre-built agents are available to deploy out of the box; and software provider partnerships facilitate industry-specific customization and integration, while avoiding vendor lock-in. Though initially rolled out for the financial services and legal industries, Google plans to offer similar solutions for other industries, including healthcare, life sciences, and professional services.

The following day, August 26th, Google revealed expanded tools for managing AI spending. It announced that Google Antigravity, its AI agent development platform, and Android Studio, for building applications, will now be included in Gemini Enterprise subscriptions. Usage across Antigravity, the platform, and the app rolls up into a single view instead of separate license and billing siloes. Furthermore, Google is providing expanded billing flexibility and new cost management tools for agent workloads across Gemini Enterprise. Customers can purchase a mix of per-seat subscriptions along with a new pay-as-you-go option, to help avoid hitting token caps in the middle of a job. Companies that commit to a minimum monthly spend will receive discounts on token costs. To better control spending, Google has rolled out new guardrails that enable administrators to set limits on AI spend by project, help estimate agent runtime costs, and identify anomalies in spending. Project level guardrails can pause an agent when API call limits are reached; a FinOps agent provides spending summaries in natural language.

Google’s announcements directly address concerns many organizations have over the spend on AI inference. After a period of ‘token maxxing’ wherein greater token usage was associated with greater productivity, organizations are looking to rein in and better control inference costs. Despite declining token costs, overall consumption, and therefore spend, are skyrocketing. Thus, the industry is now embracing ‘value-maxxing,’ which focuses on outcomes. It seeks to identify and quantify results, whether they be improved performance, more insightful decisions, or greater efficiency.

Regardless of the jargon of the day, organizations are taking a more analytical and practical approach to cost, latency, and performance optimization. No longer is the fastest or most expensive model considered the best choice for all tasks; organizations are now recognizing that some workflows are served well enough by less intensive reasoning, and that the same level of accuracy is not required for all tasks. At the same time, many are considering open-source strategies, attracted to the potential of lower costs, ability to fine tune models, greater transparency, local deployment options, and the option of leveraging existing infrastructure investments. At the end of the day, the development of appropriate AI strategies relies heavily on a broader understanding of the business and its operating model; professionals that can combine this knowledge with technical AI expertise are invaluable.

AI Changing the Commercial Model for Fiber Build

B. Swan

Summary Bullets:

• Zayo will build 8,000 miles of new long-haul fiber across key AI corridors, with Nvidia becoming its anchor customer.

• Nvidia’s extends beyond GPUs and compute, with partnerships spanning the optical and networking ecosystem underpinning AI infrastructure.

Until now, the AI Infrastructure race has predominately been focused on GPUs, data centers and access to reliable power, yet beneath all three sits a less visible, but increasingly critical, layer – connectivity. As AI workloads become larger, more distributed and dependent on moving large volumes of data between locations, fiber is emerging as a fundamental component of the AI Stack. Zayo’s recent announcement to build 8,000 miles of new long-haul fiber across key AI corridors, backed by Nvidia as its anchor customer, could mark the new beginning of a new investment cycle for terrestrial networks. The bigger question is whether AI-related companies could become the anchor customer needed for the next generation of fiber investment?

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Zoom is Delivering Better CX by Combining Communications, AI, and Workflow into One Platform

S. Soh

Summary Bullets:

• Zoom CX is a credible option for enterprises looking to transform their customer engagement with omni-channel and AI capabilities.

• Working with a broader partner ecosystem is pivotal for Zoom to win in CX space since this involves workflows and different business applications.

Zoom is well-known for its conferencing solution, which is used extensively in modern workplace, but it has gone well-beyond conferencing in recent years. The core business of Zoom has been the enabler of conversations within the workplace. To go beyond communications, the company sees new opportunities by expanding its role to help enterprises automate workflows during and after conversations (i.e., meetings and phone conversations). This vastly enlarges the value Zoom can deliver to enterprise customers, especially with the application of AI. For example, AI can eliminate many manual tasks such as generating documents from meeting with summaries and next steps, or updating CRM records after a discussion within the sales team.

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AI Requires a Reinvention of the Modern Data Center

B. Valle

Summary Bullets:

• AI is drastically changing the fabric of the traditional data center, prompting fundamental changes in design and architecture.

• The biggest challenge is that AI infrastructure requires simultaneous scaling across multiple constrained layers: electricity, cooling, networking, chips, facilities, capital, and operations.

The rise of AI workloads is pushing data centers through a major architectural shift: from relatively general-purpose, virtualized compute environments toward high-density, network-intensive AI infrastructure. For example, rack density is rising sharply, because traditional data centers were not designed for the power and thermal profiles of dense AI server clusters. This means power distribution, floor loading, cable management, and thermal design are becoming central architectural considerations. Power availability has now become a core design constraint. Energy availability is starting to influence where data centers are built, with land and power constraints pushing some infrastructure development into new or remote regions.

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More Than Minutes: Strategic Partnerships Are Transforming International Voice

B. Swan

Summary Bullets:

• e& and Globe Telecom demonstrate how strategic partnerships are transforming international voice through stronger service quality, fraud prevention, and expanding global reach.

• The future of international voice will be defined by user experience and security through strategic partnerships, not the lowest termination rates.

Over recent years, international voice has been viewed as a legacy service, highly commoditized with declining traffic volumes and shrinking revenues. Beneath the surface, however, the market is undergoing significant transformation. Rather than competing solely on the lowest possible termination rates, international carriers are forming strategic partnerships to improve service quality, extend global coverage, and strengthen network resilience to combat the threat of fraud. The recent announcement between e& and Philippine Globe Telecom reflects the shift, demonstrating how collaboration is becoming a key competitive differentiator in the next phase of international voice. As the wholesale communications market continues to evolve, could these partnerships become the defining factor that separates market leaders from the rest?

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Zoom Has Upped the Ante in Supporting Sales Teams

G. Willsky

Summary Bullets:

  • The Zoom Revenue Accelerator updates combined with the pending acquisition of the Common Room platform will provide Zoom with complete coverage of the sales cycle.
  • Providing support for the sales process represents a ‘new frontier’ that vendors are exploring and one that should ripen quickly.

Zoom announced general availability of three updates to its Zoom Revenue Accelerator (ZRA) feature, which helps sales teams close deals by analyzing customer interactions using AI. The updates consist of ‘Sales Roleplay,’ which provides practice simulations of customer conversations; ‘Sales Assist,’ which includes real-time deal guidance to keep reps focused as they engage the customer; and ‘Ask ZRA,’ which allows both reps and managers to perform natural language queries on conversation data post-discussion with the customer.

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8×8 AI Routing Takes a Sad Song and Makes It Better

G. Willsky

Summary Bullets:

• 8×8 AI Routing identifies the right expert anywhere in an organization that can resolve a customer’s inquiry, not just the contact center.

• While 8×8 AI Routing is marginally better than legacy systems it still merits a try out.

We’ve probably all found ourselves reciting this famous opening line to a classic song when trying to connect with someone in customer support: “Help! I need somebody. Help! Not just anybody. Help! You know I need someone. Help!”

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AT&T, T-Mobile, and Verizon Trade Wins in H1 2026 as 5G SA and Mid-band Shape Real-world Performance

John Marcus – Senior Principal Analyst, Enterprise Mobility and IoT Services.

Summary Bullets:

• AT&T, T-Mobile, and Verizon each improved in H1 2026, with distinct strengths across speed, reliability, and calls.

• Enterprises should evaluate 5G SA maturity, uplink capacity, and location-specific consistency—not just peak download speeds.

US mobile performance improved across the board in H1 2026, according to Ookla’s “State of the Mobile Union” reporting, drawing on RootMetrics testing. RootMetrics technicians ran over 3 million real-world tests from January to June 2026, driving 243,000 miles across all 50 states and 125 major metro markets to evaluate AT&T, T-Mobile and Verizon.

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