SoundHound AI Acquires Interactions for $60 Million to Strengthen Leadership in Conversational AI

SoundHound AI Acquires Interactions for $60M, Strengthening Its Position in Conversational AI

SoundHound AI has taken a significant step forward by acquiring Interactions, a company known for its conversational AI solutions in customer support, for $60 million. This move follows last year’s $80 million acquisition of Amelia and marks another milestone in SoundHound’s expansion within the contact center space.

Details of the Acquisition

Interactions brings with it two decades of innovation and intellectual property in conversational AI. Its extensive portfolio includes numerous enterprise integrations and a wealth of production data. This acquisition also broadens SoundHound AI’s geographic reach, channel strategy, and customer support capabilities, complementing its existing offerings.

Leadership Insights

Keyvan Mohajer, CEO and Co-Founder of SoundHound AI, emphasized the strategic importance of this acquisition: “We’re moving towards a future where AI agents, powered by voice and conversational AI, are central to delivering high-quality customer service. Interactions is a pioneer with a diverse client base, and bringing them onboard strengthens SoundHound as a leader in this new AI era.”

Market Context

According to Gartner, by 2027, conversational AI will automate around 70% of customer support interactions. This highlights the growing importance of conversational AI, though the market remains crowded with major players like Microsoft, Google, AWS, Salesforce, and ServiceNow. Recent acquisitions, such as NiCE’s purchase of Cognigy, show increased activity in this space.

SoundHound AI stands out with its Visionary status in Gartner’s latest Magic Quadrant for conversational AI. Its acquisition of Amelia has bolstered its presence in financial services contact centers. Moreover, its edge solutions enable AI experiences that start on smart devices — a key differentiator.

Technological Strengths

SoundHound’s multimodal capabilities include its Vision AI, which allows AI to both see and talk simultaneously. This innovative feature could influence the future direction of conversational AI. However, to become a market leader, SoundHound needed to enhance its support services and domain expertise in customer service — a gap that the Interactions acquisition fills.

Looking Ahead

Mike Iacobucci, CEO of Interactions, shared his enthusiasm: “SoundHound’s technology and innovation set it apart. Together, we offer businesses more choice, flexibility, and scale. As customer interactions become more agentic, SoundHound is well-positioned to meet those evolving needs.”

With hundreds of vendors offering AI for contact centers, those that succeed will provide flexible virtual agent solutions. These must cater to different user skill levels and prioritize trust and safety through features like simulation testing, prompt injection detection, and outbound monitoring.

Leading companies will also integrate conversational intelligence tools and clearly communicate pricing aligned with customer needs. Innovation remains key, and SoundHound is likely to focus on developing self-reflective AI agents that adapt resolution flows based on brand objectives — a direction highlighted by recent research from Opus Research.

This acquisition strengthens SoundHound’s foundation by adding a company that excels in the core aspects of customer service AI.