Five9 Agrees to Acquire Level AI as Customer Experience Companies Accelerate Enterprise Automation

Five9 announced a definitive agreement to acquire Level AI, expanding its artificial intelligence capabilities as the cloud-based customer experience company seeks to strengthen its position in the increasingly competitive contact center technology market.

The announcement, made on November 5, accompanied Five9's third-quarter financial results, which showed revenue increasing 13% year over year to $323.3 million.

The proposed acquisition is intended to combine Five9's Genius Customer Experience platform with Level AI's specialized artificial intelligence applications for customer interactions, workforce performance and business intelligence.

The transaction reflects a broader shift in the customer service industry as companies increasingly incorporate AI into telephone support, digital communications and contact center operations.

Five9 Expands Its Customer Experience Platform

Five9 provides cloud-based technology used by organizations to manage customer communications and contact center operations.

Its Genius CX platform supports businesses handling customer interactions across different communication channels.

These systems are important for organizations that operate customer service departments, sales teams and technical support operations.

Traditional contact centers have relied heavily on human agents to handle incoming calls, respond to customer questions and manage service requests.

Although automation has existed in the industry for years, advances in generative AI and conversational technologies are creating new opportunities to automate more complicated interactions.

Five9's proposed acquisition of Level AI is intended to expand its capabilities in this area.

The company said the transaction would add AI-native applications designed to improve agent performance, automate customer interactions and convert conversations into insights that organizations can use across their operations.

Level AI Brings Specialized Artificial Intelligence Capabilities

Level AI develops technology designed to support customer experience operations throughout the customer journey.

Its capabilities include tools for analyzing customer conversations, supporting contact center agents and automating selected service processes.

These applications can help organizations identify recurring customer concerns and evaluate how effectively service teams handle interactions.

For businesses operating large contact centers, the ability to analyze customer conversations can provide useful operational information.

Managers can identify common service problems, monitor interaction quality and evaluate opportunities to improve employee performance.

The technology can also help reduce repetitive administrative work associated with reviewing customer conversations.

By incorporating these capabilities, Five9 aims to expand the range of AI-supported services available through its customer experience platform.

The combination is intended to provide organizations with additional flexibility in deciding how AI and human employees work together.

Human Agents Remain Part of the Operating Model

The acquisition announcement emphasized the relationship between artificial intelligence and human customer service representatives.

Five9's stated strategy is to develop a system in which AI applications support human agents rather than simply replacing every customer interaction with automation.

This distinction is important because customer service operations frequently involve situations requiring judgment, empathy and specialized knowledge.

Automated systems may be suitable for routine requests, information retrieval and selected administrative tasks.

However, complicated complaints, unusual customer circumstances and sensitive service issues may still require direct human involvement.

Businesses therefore need systems that can identify when an automated interaction should be transferred to a human representative.

Combining automation with human support can help organizations manage service volumes while maintaining access to employees capable of addressing complex situations.

Third-Quarter Revenue Increases 13%

Five9 also reported its third-quarter 2026 financial performance on November 5.

Revenue increased 13% to $323.3 million, compared with $285.8 million during the same period a year earlier.

Subscription revenue increased 16% year over year.

The subscription business is particularly important because recurring revenue provides technology companies with a continuing source of income from customers using their platforms.

Five9 reported GAAP net income of $14.5 million, compared with $18 million in the third quarter of the previous year.

The company also reported a GAAP gross margin of 53.4%, compared with 55% a year earlier.

Adjusted gross margin reached 61.7%, compared with 62.8% in the corresponding period.

The results demonstrate continued revenue expansion alongside changes in profitability measures.

For technology companies, maintaining growth while investing in product development and infrastructure remains an important financial consideration.

Customer Experience Technology Becomes More Competitive

The proposed acquisition comes as the customer experience technology market experiences significant changes.

Companies are evaluating how AI can improve service availability, reduce response times and provide better visibility into customer needs.

Contact centers are particularly relevant because they generate large volumes of structured and unstructured information.

Every customer interaction can provide information about product issues, service quality and operational performance.

AI tools can help organize and analyze this information, allowing businesses to identify patterns that might otherwise require extensive manual review.

However, organizations must also consider privacy, data security and accuracy when introducing AI into customer communications.

Customer conversations may contain personal and financial information that requires appropriate protection.

The reliability of automated responses is also important because incorrect information can damage customer relationships.

Acquisition Requires Integration and Execution

Five9's agreement to acquire Level AI is expected to close in 2026, subject to the satisfaction of specified closing conditions.

Until the transaction is completed, the two businesses remain subject to the applicable acquisition process.

After closing, integration will become an important operational priority.

Five9 will need to incorporate Level AI's technology, personnel and product capabilities into its broader platform strategy.

Successful integration will require coordination across engineering, product development, customer support and commercial operations.

Technology acquisitions can provide access to specialized capabilities, but their long-term value depends on how effectively those capabilities are integrated into existing products.

Customers will also evaluate whether the expanded platform delivers practical improvements in their daily operations.

Implications for Businesses Using Contact Centers

For businesses, the development highlights the growing importance of AI in customer service infrastructure.

Organizations are increasingly evaluating automation not only as a way to reduce repetitive work but also as a means of improving information access and operational visibility.

An integrated customer experience platform may help companies coordinate communication channels, support employees and analyze customer feedback.

However, technology adoption must account for workforce preparation and the importance of maintaining reliable human support.

A Strategic Move in the AI Customer Experience Market

Five9's proposed acquisition of Level AI represents a significant development in the customer experience technology sector.

Combined with its third-quarter revenue growth, the announcement demonstrates the company's continued investment in its cloud-based business and AI capabilities.

As businesses reconsider how customer service operations should function in an increasingly automated environment, technology providers are competing to deliver platforms that combine efficient automation with dependable human assistance.

The success of the acquisition will depend on integration, customer adoption and the ability to translate additional AI capabilities into measurable business value.