Freshworks has released an AI agent framework called Freddy AI 2.0 that can autonomously resolve up to 70% of customer support tickets without human intervention. The framework integrates with the company’s existing CRM and ITSM products and uses retrieval-augmented generation (RAG) to ground responses in company-specific knowledge bases.

Built on a combination of proprietary models and fine-tuned open-source LLMs, Freddy AI 2.0 goes beyond simple chatbot responses. It can execute multi-step workflows — processing refunds, updating account information, escalating complex issues, and even generating post-resolution surveys — without human approval for predefined action categories.

“The first generation of AI in customer service was about suggesting answers to human agents. This generation is about the AI being the agent,” said Freshworks CEO Dennis Woodside during the product launch in Chennai.

Early enterprise adopters report a 40% reduction in average resolution time and a 55% decrease in support costs. However, the system still routes sensitive issues — billing disputes over $500, legal complaints, and frustrated VIP accounts — to human agents.

The launch comes as the AI customer service market is projected to hit $58 billion globally by 2028, with India-based SaaS companies like Freshworks, Zoho, and Yellow.ai all competing for market share.