Twilio’s latest quarterly report makes it clear that the company’s growth is picking up thanks to AI.

The company saw a significant expansion in its customer base last quarter, while existing customers increased their spending on its offerings.

Twilio’s attractive valuation and healthy earnings growth potential point toward a big jump in its stock price through the end of the decade.

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Artificial intelligence (AI) technology is having a positive impact on several industries across the globe. From education to healthcare to manufacturing to supply chain, AI adoption is gaining steam thanks to the many benefits that this technology brings.

Not surprisingly, the global AI industry is expected to record an annual growth rate of 37% through 2031. That’s the reason why companies offering AI solutions that help their customers improve productivity are likely to witness healthy growth in the coming years. Twilio (NYSE: TWLO) is one such company whose cloud-based application programming interfaces (APIs) enable its clients to remain connected with their customers through various channels.

Importantly, Twilio has embraced AI, and this move is now translating into solid financial gains. Let’s look at the reasons why this cloud stock may turn out to be one of the best AI-centric investments of the decade.

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Twilio operates in the cloud-based contact center market. Its APIs displaced traditional contact centers that required heavy initial investments and running costs, such as buying several computers and communication equipment, along with monthly expenses such as building rent and infrastructure management costs.

Twilio’s clients can simply install its APIs on an internet-enabled computer/laptop, and this allows their customer service agents to assist customers from anywhere at any time. Not surprisingly, the cloud contact center market is growing at a healthy pace. Mordor Intelligence expects it to hit $32.6 billion in revenue in 2025.

Twilio generated $3.7 billion in revenue in the first nine months of 2025. The company’s guidance for the final quarter of the year suggests that it will end the year with at least $5 billion in revenue. That would put its share of the cloud contact center market at just over 15% (based on Mordor Intelligence’s market size estimate).

However, don’t be surprised to see the company cornering a bigger share of this market in the future, all thanks to AI. The company has been integrating various AI-focused tools into its cloud communications platform in recent quarters, and the good part is that its efforts are paying off. CEO Khozema Shipchandler remarked on the latest earnings call that “our innovation bets on new trusted capabilities like conversational AI and branded communications are also paying off.”