ZM: Zoom launches AI sales tools & auto dialer, but $150M encryption settlement weighs

Court: N.D. California

Case: 3:20-cv-02353

Zoom ZM has expanded its sales enablement suite with the launch of Zoom Auto Dialer and key upgrades to its Zoom Revenue Accelerator (ZRA), targeting the full revenue cycle from outreach to deal close. These additions aim to streamline sales workflows with automation and AI, even as the company continues to deal with the aftermath of its $150 million investor settlement tied to software encryption misrepresentations.

The new features integrate with major CRM platforms and sales tools, helping sales teams reduce time spent on manual follow-up, while improving contact rates and insight capture.

Key Takeaways

• Zoom Auto Dialer Launches: Adds smart power dialing, voicemail drops, area-code matching, and call logging to Zoom Phone.
• CRM Integration: Pulls contact lists from Salesforce, Outreach, and Salesloft, and syncs call data back automatically.
• AI Meeting Capture: New Voice Recorder on mobile transcribes and analyzes in-person meetings using Zoom AI Companion.
• Custom Briefs Introduced: AI-generated summaries can now be tailored to specific sales workflows and synced into CRMs.
• Territory-Based Structuring: ZRA now supports geographic and market segment-based organization of sales teams.
• Efficiency Focus: Enhancements aim to cut time spent on repetitive admin and improve visibility into pipeline risk.

Timeline Overview

• July 2019: Reports surface on flaws in Zoom’s encryption and user data protection.
• March 26, 2020: Disclosures reveal data-sharing risks with third parties including Facebook.
• March 27, 2020: ZM stock falls 19.6% following press coverage.
• May 18, 2020: Shareholders file suit alleging misleading statements on encryption and security.
• July 12, 2023: Zoom agrees to pay $150 million to settle investor claims.

Allegations Include

Zoom was accused of overstating the strength of its encryption by claiming it offered full end-to-end encryption while actually using less secure transport encryption. Additionally, the company failed to disclose that user data was being shared with third parties without proper safeguards, leading to major privacy concerns and stock losses.

Investor Update

The $150 million settlement resolves investor allegations related to security misrepresentations made between 2019 and 2020. While the company has since improved its privacy policies and encryption technology, the payout underscores how critical data transparency is to shareholder trust. Eligible shareholders from the affected period may still qualify for compensation.

You can check more information about it and file for a payout HERE.