Conversational AI Market to Cross USD 46.37 Billion by 2028 as Result of Rising Need for Effective Customer Support Services
The conversational AI market is projected to exhibit a remarkable CAGR of 28.3% during the forecast period (2022 to 2028). As a result, the market value is estimated to reach USD 46.37 billion by 2028, from USD 9.6 billion in 2021.
Westford USA, Jan. 19, 2023 (GLOBE NEWSWIRE) — The conversational AI market is growing rapidly due to increased demand for AI-powered customer support services, lower chatbot development costs, and omnichannel implementation. With conversational AI becoming a more critical technology, businesses must implement chatbots or virtual assistants with the proper parameters. As a result, conversational AI is increasingly becoming popular across the globe thanks to improved 24/7 customer support, real-time personalized service, and lower customer service costs. In addition, digitalization and e-commerce are expanding quickly, creating ideal circumstances for the demand for customer support services, thereby fueling market growth.
According to SkyQuest’s market insight, businesses spend nearly USD 1 trillion on call center IT, handling more than 255 billion consumer calls annually. Enterprises are quickly using conversational AI in their contact centers to supplement current human labor and free up their bandwidth for more strategic work to address the increasing strain. It helps businesses cut costs by millions of dollars and optimize call center operations.
Artificial intelligence (AI) that engages in conversation automates communication, generates individualized consumer experiences, and supports speech-based assistants and chatbots. Additionally, a subset of conversational AI enables people to interact daily with gadgets, programs, and websites via voice, touch, text, or gesture data.
Solution Segment to Register Significant Growth Rate owing to Rise in Adoption of AI technology by Large-Scale Enterprises
As per SkyQuest’s industry analysis, the solution segment dominated the global conversational AI market with a 53% market share in 2022 and is projected to follow the same pattern to reach 59% by 2025. Large-scale adoption of internal conversational AI technology by enterprises is attributed to the segment’s overwhelming share. The services are necessary for conversational AI systems to function well.
The total sales of conversational AI in the US were estimated to be worth USD 3.2 billion in 2022. By 2028, the US conversational AI market is anticipated to be worth US$16.8 billion. North America is predicted to lead the market throughout the forecast period due to the region’s widespread adoption of impending technology breakthroughs and the quickly rising need for customer support services utilizing artificial intelligence.
The report on the conversational AI market includes information on market regulations, value chain optimization, market share, and the effects of major international market participants. It also covers strategic growth analysis, category market growth, application niches, product approvals, new product launches, and technological advancements. In addition, the research report offers a comprehensive analysis of the market, contains insightful information, and aids readers in learning about the many growth aspects anticipated to be present across the market.
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Chatbot Segment to Reach its All-Time High Year Revenue Share as Industry Witnesses Huge Traction
By SkyQuest’s projection, the chatbots segment held 57% of the revenue share in 2022 and is anticipated to make a remarkable addition by 2028. The growth can be attributed to its ability to improve customer service significantly. The majority of their use is for data collection. Customers can communicate with chatbots to set up appointments, request information, or obtain clarification on any service or product. A variety of conversational AI service providers in the market produce digital assistants and chatbots with limited user-personalized features. The potential for incorporating innovations such as gesture detection into conversational AI services is enormous.
China is anticipated to witness a CAGR of 18.3% throughout the forecast period, growing its market size to US$ 3.4 billion in 2028. In addition, increasing demand for online shopping during COVID-19 and the adoption of improved AI capabilities to improve on current conversational AI services have created the potential for conversational AI market growth in the Asia Pacific region.
The conversational AI market report’s outcomes are verified using multi-level research and interviews with industry experts. Through additional market estimation and data validation processes, the data covered in the market report is further optimized and featured with accurate statistics. Additionally, to anticipate market growth during the projected period, we created a data forecasting approach internally to ensure reliable projections.
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Key Developments in Conversational AI Market
- Leading Conversational AI expert Artificial Solutions® has established a new cooperation with American business and technology consultancy firm Neudesic. With this cooperation, Neudesic can expand its offering of solutions to help businesses get the most out of their investments in conversational AI by including Artificial Solutions’ Teneo platform. The goal of the agreement is to help Neudesic, and Artificial Solutions increase the use of conversational AI across the United States.
- Kore.ai, a leading conversational AI and platform solutions company, and mParticle, an AI-native customer data platform for consumer brands, have announced a partnership. The partnership will provide a natural language processing (NLP)-based AI-first search engine and intelligent chatbots that personalize shopping experiences for retail customers. To improve customer service in areas ranging from purchases to support, the alliance will enable firms with digital shopping interfaces to install NLP search assistants and intelligent chatbots powered by consumer information.
- Microsoft has announced the public availability of Azure OpenAI Service. Additionally, the business has disclosed that it will soon integrate OpenAI’s popular chatbot ChatGPT into the cloud-based service. Enterprise users of Microsoft can integrate OpenAI models into their business applications using the Azure OpenAI Service. Businesses have leveraged the service for sophisticated use cases like customer assistance, customization, and deriving insights from data using search, data extraction, and categorization.
- A pioneer in conversational AI, Cognigy recently revealed that its Cognigy.AI platform would be improved with generative AI, or large language models (LLMs) like OpenAI’s GPT-3, to support conversational AI deployments. By fostering sophisticated conversational experiences and increasing productivity, generative AI will contribute to the continued transformation of enterprise customer service and contact centers.
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Prominent Players in Conversational AI Market
- Amazon Web Services, Inc.
- Baidu, Inc.
- Artificial Solutions Holding ASH AB
- Conversica Inc.
- Microsoft Corporation
- IBM Corporation
- Google LLC
- Oracle Corporation
- SAP ERP
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