Twilio, a global leader in customer engagement solutions, has announced a multi-year strategic partnership with Microsoft to accelerate the development and adoption of conversational AI technologies across industries. The collaboration was unveiled during Twilio SIGNAL 2025, the company’s flagship developer conference held in San Francisco on May 14–15.

This strategic alliance will benefit over 10 million Twilio developers and thousands of Microsoft-managed enterprise customers, aiming to shape the future of AI-powered customer interactions. The joint efforts will leverage Twilio’s robust communication and AI capabilities with Microsoft Azure AI’s enterprise-grade infrastructure to deliver secure, scalable, and innovative conversational AI solutions.

Conversational AI enables systems to engage in human-like dialogue using natural language processing (NLP) and machine learning (ML). Despite its transformative potential, businesses have encountered roadblocks such as inaccurate results from limited datasets and challenges in integrating AI with legacy systems. The Twilio-Microsoft partnership is poised to overcome these hurdles by uniting technological strengths and deep industry expertise.

“Every interaction between a business and its customers is an opportunity to build loyalty and trust, and those interactions have been drastically improved by AI,” said Inbal Shani, Chief Product Officer at Twilio. “Conversational AI enhances customer engagement by delivering precision and rich, dynamic experiences.”

The companies will jointly develop AI-powered tools, including multi-channel virtual agents, AI copilots for assisting live contact centre agents, and multi-modal solutions that seamlessly combine voice and text communication. These offerings will be built on Microsoft Azure AI Foundry and Twilio’s comprehensive engagement platform.

Asha Sharma, Corporate Vice President of Azure AI Platform at Microsoft, emphasised the value of the partnership: “Azure AI Foundry enables customers to confidently scale AI agents across their organisation using technologies that enhance accuracy, privacy, and compliance. Combined with Twilio’s capabilities, this partnership creates a vital connection between businesses and their customers.”

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Twilio also unveiled new product innovations at SIGNAL 2025:

• ConversationRelay (GA): A new tool that enables developers to build advanced natural voice AI agents using their preferred large language models (LLMs), with integrated real-time streaming, cutting-edge speech recognition, and expressive voice output.
  
• Conversational Intelligence (GA for Voice, Beta for Messaging): An AI tool that converts calls and text messages into actionable data, enabling businesses to enhance customer experiences and operational efficiency.
  

Further expanding the impact of the collaboration, Twilio will showcase its conversational AI solutions powered by Azure AI Foundry at Microsoft Build 2025 in Seattle, from May 19–22.

The SIGNAL conference featured insights from top executives and industry leaders from companies such as Best Buy, Clear, Rocket, and Vineyard Vines. It also included a virtual fireside chat between Twilio CEO Khozema Shipchandler and Microsoft Chairman and CEO Satya Nadella.

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