Tata Communications said on Tuesday it has acquired a 51% stake in Commotion Inc, a US and India based software platform that specialises in artificial intelligence tools for customer service and business automation. The move is part of the company’s effort to introduce more AI capabilities across its technology services.
The deal gives Tata Communications majority control of Commotion. Financial terms were not made public. The acquisition will be executed in cash through a stock purchase agreement on a fully diluted basis.
Commotion develops software used by companies to manage customer interactions through chat, voice-based AI and automated service agents. Tata Communications plans to integrate Commotion’s systems into its existing communication platforms, including Kaleyra, to automate parts of customer support and help businesses predict needs rather than only respond to service requests.
Tata Communications plans to use AI more widely across its services
A. S. Lakshminarayanan, Managing Director and CEO of Tata Communications, said the acquisition fits within the company’s plan to use AI more widely across its services. He said demand for AI-powered customer interaction tools has increased and called the deal “a significant step” in the company’s shift towards becoming what it describes as an AI-first organisation.
Commotion says its technology combines voice-driven AI, automated customer experience platforms and digital agents that can operate continuously across customer-facing and internal functions. According to the company, these tools are designed to help businesses reduce service workloads and personalise customer interactions at large scale.
Murali Swaminathan, CEO, Commotion, said joining Tata Communications offers greater reach for its platform and the opportunity to develop solutions for a wider range of industries.
Tata Communications has been expanding its communications technology portfolio through acquisitions as more companies adopt digital tools to automate customer engagement and internal operations. The company said acquiring Commotion is intended to help enterprise clients scale up AI projects beyond testing and small pilots.
