Communication tool provider Twilio Inc. today announced updates at its annual SIGNAL 2025 conference, including a next-generation customer engagement platform built for an artificial intelligence and data-driven future, along with a new strategic partnership with Microsoft Corp. to advance conversational AI.

Leading the list of announcements was a next-generation platform designed to unify communications, data and AI into a single, flexible infrastructure for customer engagement. The platform integrates omnichannel communication tools, including voice, SMS, email, video and over-the top, with contextual data from Twilio’s Segment Customer Data Platform and a growing portfolio of native AI capabilities.

The enhancements unveiled by Twilio span three core areas — conversational AI, compliance and personalization. The updates are designed to help businesses deliver more intelligent, compliant and tailored customer engagement at scale.

In conversational AI, Twilio today launched ConversationRelay, a tool that allows developers to build voice agents using their choice of large language models. The service includes features such as real-time streaming, advanced speech recognition, interruption handling and human-like voice rendering. Conversational Intelligence is now generally available for voice and entered private beta for messaging, allowing companies to turn conversations into structured insights.

On the compliance front, Twilio introduced a new Compliance Toolkit, now in public beta, to help businesses manage requirements such as the U.S. Telephone Consumer Protection Act more easily. The company also announced plans to make RCS messaging and WhatsApp Business Calling generally available later this year.

For personalization and insights, Twilio updated its Segment Customer Data Platform with a redesigned Journeys architecture that now supports event-triggered workflows and richer contextual payloads. The improvements are complemented with new integrations for SMS and SendGrid, as well as new partnerships with Amplitude Inc. and Attribution App. Twilio is also expanding data residency options in the EU for email and SMS, further strengthening its global compliance capabilities.

Microsoft partnership

Along with product updates, Twilio announced a new strategic partnership with Microsoft to jointly develop and deploy conversational AI experiences at scale. Under the partnership, Twilio will integrate its engagement platform with Microsoft’s Azure AI Foundry to power AI-driven communications, including multi-channel AI agents, advanced contact center assistants via Twilio Agent Copilot and multi-modal customer interaction tools.

The collaboration brings together Twilio’s strengths in communications and customer data with Microsoft’s enterprise-grade AI infrastructure with an aim to help businesses overcome legacy integration challenges and accelerate the adoption of intelligent, scalable customer engagement solutions.

“Azure AI Foundry enables customers to confidently scale AI, including AI agents, across their organization with our enterprise-grade technologies and best practices that help manage risk, improve accuracy, protect privacy, reinforce transparency and simplify compliance,” said Asha Sharma, corporate vice president of the Azure AI Platform at Microsoft. “Customers will see strong business value with the combination of Azure AI Foundry and Twilio’s communications and data capabilities – the critical last mile connection between businesses and customers.”

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