Artificial intelligence is fundamentally transforming customer engagement—but today, the real leap forward lies in Generative AI (GenAI) and the new paradigm of Agentic AI. These technologies aren’t just automating routine tasks; they’re powering a new era of hyper-personalized, always-on, and goal-driven interactions where digital agents own the customer outcome from start to finish.
GenAI: Transforming Every Touchpoint
GenAI moves customer engagement from reactive support to proactive, seamless experiences:
Agentic AI: The Next Level of Engagement
Agentic AI brings autonomy and decision-making to customer support, functioning less like a bot and more like a digital team member:
New and Emerging Use Cases
The evolving landscape of AI technologies is unlocking powerful new possibilities for customer engagement. The following infographic highlights some of the most innovative and practical ways GenAI and Agentic AI are being applied to create smarter, more tailored, and more proactive customer experiences across industries
What Does This Mean for M&A Activity?
All these advances are driving a wave of M&A in the AI-for-customer engagement space—not just among enterprises applying GenAI and Agentic AI, but more critically among the technology and solution providers making these breakthroughs possible. The logic is clear: as demand skyrockets for next-generation customer interactions, platform giants and enterprise SaaS leaders are racing to acquire the most innovative AI specialists to accelerate their own product roadmaps and stay ahead of the competition.
A prime example is Gainsight’s recent acquisition of UpdateAI—a leader in conversational intelligence—which accelerates Gainsight’s agentic AI strategy and aligns with its vision for the Atlas next-gen AI agent. Other landmark transactions demonstrate this trend:
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Date
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Target
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Acquirer
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Rationale
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HQ Country
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Jul-25
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HyperArc
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Zendesk
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Advance GenAI-driven analytics and instant customer intelligence
|
USA
|
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May-25
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Convergence.ai
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Salesforce
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Empower Agentforce with adaptive, autonomous AI agents
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UK
|
|
Apr-25
|
Context.ai
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OpenAI
|
Enhance model evaluation and explainable AI capabilities
|
UK
|
|
Mar-25
|
Moveworks
|
Servicenow
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Expand agentic AI and automation for enterprise engagement
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USA
|
|
Feb-25
|
Laudable
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Base.ai
|
Automate conversation capture for smarter advocacy and engagement
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Nigeria
|
|
Sep-24
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Zoomin
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Salesforce
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Enhance knowledge delivery and contextual support experiences
|
USA
|
|
Sep-24
|
Tenyx
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Salesforce
|
Strengthen conversational AI for next-gen voice customer service
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USA
|
|
Aug-24
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SupWiz
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Puzzel
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Integrate advanced conversational AI into omnichannel CX platform
|
Denmark
|
|
Mar-24
|
Ultimate
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Zendesk
|
Accelerate automation and agentic AI in customer support
|
Germany
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Such M&A activity reflects rapidly escalating demand for advanced GenAI, agentic AI, and customer engagement solutions. Buyers are targeting companies with:
- Proprietary AI/LLM capabilities in customer interaction and analytics
- Demonstrated enterprise deployments and sticky, recurring revenue models
- Deep integration across sales, marketing, and support functions
Turning AI into True Competitive Advantage
Organizations that succeed with GenAI and Agentic AI start with clear business and customer goals, backed by unified data foundations. By empowering action across the customer journey—and amplifying the human touch—AI becomes more than a tool: it evolves into a trusted ally, personalizing experiences and driving agility in a rapidly changing market.
At TH Global Capital, our Investment Banking team advises AI, GenAI, and digital customer engagement companies on M&A and capital raising. We help founders maximize business value by highlighting unique AI capabilities, refining their tech stack for acquirer fit, and connecting them with leading global buyers. If you’re building or investing in the next wave of conversational AI, let’s connect intelligence, let’s connect—our global reach and sector insight will help you seize the opportunity in this rapidly-evolving market.