Global Conversational AI Market is valued at USD 8.24 Billion in 2022 and is expected to reach USD 32.51 Billion by 2028 with a CAGR of 21.6% over the forecast period.
Global Conversational AI Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2022-2029- Increasing demand for artificial intelligence-powered customer support services and surge in deployment of omnichannel methods are some of the major factors driving the growth of the Global Conversational AI Market.
Conversational AI is the conversation part of the AI-based chatbot. AI-based chatbots use conversational AI to understand and converse with humans. Conversational AI is a set of technologies and it works behind automated massages. By identifying speech and text, understanding intent, decoding different languages, and responding in a way that mimics human conversation it can communicate like a human. This technology includes NLP, ML, and intelligent analysis. Additionally, any language can be used for bi-directional communication like virtual agents (chatbots or voice bots), apps, websites, social platforms, and/or messenger platforms. The motive of the conversation can be for the users to gain information, complete tasks, or execute transactions.
Covid-19 has impacted the growth of the Conversational AI market. Coronavirus pandemic is a disease that affects globally with a lasting effect that will take many years to overcome. Lockdown restrictions prevented many contact centers from meeting demand or shutting down, leading to long delays in customer service issues, which had a dramatic effect on the customer experience. Lockdown restrictions prevented many contact centers from facing, ordering, or closing, resulting in long delays in customer service questions, which significantly affected the customer experience. However, a chatbot with AI is an ideal way to maintain customer contact, expand the relationship and generate new leads in times of crisis despite social distancing. Additionally, during pandemic, there was the only way of digital communication channels to get in touch with customers and maintain customer relationships.
Some major key players for the Global Conversational AI Market report covers prominent players like
Global Conversational AI market is segmented on the basis of component, deployment, type, technology, end user and geography. On the basis of component, the market is segmented into the platform, services, support and maintenance, training and consulting and system integration. Based upon deployment, the global conversational AI market is segmented into cloud and on-premises. Based on type, the global conversational AI market is segmented into IVA and chatbots. Based upon technology, the global conversational AI market is segmented into machine learning, deep learning, NLP and automated speech recognition. Based end-user, the global conversational AI market is segmented into BFSI, retail & e-commerce, healthcare & life science, travel & hospitality, telecom, media & entertainment and others.
The regions covered in the Global Conversational AI Market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. On the basis of country level, the market of Global Conversational AI is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, South East Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.
In the recent years, the adoption of technological advancement is one of the major factors supplementing the demand of conversational artificial intelligence. Number of businesses are having their own customer services for helping their customers. Customer service refers to the customers who seek help through call centers, websites, emails and apps. Customer relationship management is the major factor which should be maintain by businesses for the sustainable growth. Customer service industry is gaining much momentum especially due to disruption of artificial intelligence a technological breakthrough that has taken almost every business industry by storm which is also fostering the demand for conversational artificial intelligence. Enterprises have shifted their focus from customer service via email or messaging to AI-enabled chatbots that help them improve customer experience and engagement. Similarly, enterprises uses AI-powered Chabot's Natural Language Process (NLP) to organize human-like conversations and provide real-time help to customers. Additionally, the presence of various advantages related to the customer services such as; greater benefits with less workforce, personalization, better customer experience, speedy and perpetual response, direct and multichannel support, accurate customer insights, automated and secured transactions and other are also supplementing the growth of conversational artificial market.
In addition, surge in deployment of omnichannel methods is also augumenting the growth of the global conversational AI market. Omnichannel retail is a multichannel approach to sales that focuses on providing customers with a seamless experience, even when shopping online from a mobile device, laptop or brick-and-mortar store. In the recent years, the penetration of internet is booming in the various businesses and it is the major factor which boosting the demand of conversational AI market. Omnichannel retail is a commercial approach focused on providing customers with an integrated experience across digital and physical channels, from browsing to order fulfilment. Increasing online sales and digital experiences are shaping people's store behaviour and expectations. Additionally, Omnichannel conversational AI also offers customers more options depending on their preferred platform, based on their previous preferences. Online customers are retaining almost 40% more than actual customers. Companies with extremely strong all-channel customer engagement retain an average of 89% of their customers, compared to 33% of companies with weak all-channel customer engagement. 71% of service agents consider AI suitable for their jobs and 90% of clients find it more likely to do business. Branded businesses that respond quickly to inquiries.
However, lack of awareness about conversational artificial intelligence measures may hinder the market growth. People are still reluctant to use the platform. Despite this, increasing research and development activities in this field may create more opportunities for the further growth of the market.
North America is expected to dominate the conversational AI market due to the increasing demand for artificial intelligence-powered customer support services and high adoption of technological advancements in this region. Additionally, in the North America, most of the businesses have adopted technological advancements to help and fulfil their customer requirements. Increasing geriatric population is also supplementing the demand for conversational AI in healthcare sectors. For example; more than 54 million adults ages 65 and older live in the United States today, according to the U.S. Census Bureau accounting for about 16.5% of the nation’s population. Moreover, the healthcare industry in the North America region is moving ahead to introduce AI, robotics, and virtual and augmented reality which would aid in delivering intelligent solutions for both evidence and outcome-based health and focusing on collaborative and preventative care.
Asia Pacific is an emerging region in the conversational AI market due to the increasing awareness among businesses regrading the innovative customer support services and technologies. In addition, growing internet penetration, increasing adoption of technology in retail sectors, technological advancement in healthcare and consulting and rising growth of ecommerce industry in this region are also fostering the demand and use of conversational AI.
NLX Partnered with AWS for Conversational AI Partners Solutions Initiative
On November 16th, 2021; NLX AI announced its partnership with Amazon Web Services (AWS) Conversational Artificial Intelligence partners solutions initiative. NLX will allow organizations to deploy high-quality conversational AI experiences through their Conversations by NLX and Voice Compass multimodal solution.
Reliance Jio Acquired Conversational AI Platform Haptik for About Rs. 700 Crores
On April 4th, 2019; Reliance Industries acquired Mumbai-based Haptik one of the world's largest conversational Artificial Intelligence (AI) platforms for about Rs. 700 crore. Reliance has hold about 87 percent of the business, with the rest being held by Haptik's founders and employees via stock options.
|Historical data||2016 - 2021|
|Forecast Period||2022 - 2029|
|Market Size in 2022:||USD 8.24 Billion|
|Base year considered||2021|
|Forecast Period CAGR %:||
|Market Size Expected in 2028:||USD 32.51 Billion|
|Tables, Charts & Figures:||175|
|Conversational AI Companies||OpenAI (ChatGPT), Google, Microsoft, Amazon Web Services, Inc., IBM, Oracle, Nuance Communications, Inc., FIS, SAP SE, Artificial Solutions, Kore.ai, Inc., Avaamo, Conversica, Inc., Jio Haptik Technologies Limited, Rasa Technologies Inc., Solvvy, Pypestream Inc., Kasisto, Cognigy, Inbenta Technologies Inc., Google LLC, AWS, Baidu, Creative Virtual, SoundHound, MindMeld, Kasisto, Gupshup and others.|
|Segments Covered||By Component, By Deployment, By Type, By Technology, By End-User|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|