Conversational AI Market to Observe Significant Growth by 2031 Due to Company Acquisitions and Product Launches by Market Players, such as Microsoft Coproration, Haptik, and Others
Conversational AI is a type of artificial intelligence that enables real-time human-like conversation amongst a human and a computer. Although the notion of conversational AI has been introduced decades ago, it wasn’t something that was extensively used in the industries. However, since the past few years, the awareness about conversational AI has boosted extensively.
As companies from different industrial verticals are undergoing communication issues, Conversational Automation is proving to be a vital part of customer service, thus making it a trending concept to take a note of. Conversational AI chatbots, also known as virtual agents/virtual assistants, improve reach, responsiveness, and personalization of the customer experience. AI-based conversational chatbots offer enhanced customer service automation.
Today’s consumers are greatly fueling the need for businesses to improve their customer service. Hence, businesses are greatly opting to implement conversational AI to resolve their communication challenges. This innovative technology is helping businesses as well as consumers worldwide in interacting in a smarter and more effective manner.
Forecast Analysis of the Conversational AI Market
The growing demand for conversation AI from e-commerce brands across the globe and the advancements in artificial intelligence technology are the major factors estimated to foster the growth of the global market by 2031. Research Dive in its latest published report projects that the conversational AI market will grow at a CAGR of 24.5% and garner a revenue of $16,771.0 million during the forecast period from 2022 to 2031.
The global market is anticipated to observe a strong growth over the forecast period due to the surging adoption of conversational AI solutions like chatbots in the BFSI sector in order to improve customer engagement. However, the inability to handle complex queries and the high costs associated with the installation of AI chatbots are expected to hinder the growth of the global conversational AI market in the coming years.
Conversational AI Market Trends & Developments
With time, there have been several developments in the conversational AI sector. Market players are significantly investing in in-depth research for boosting the efficiency of this wonderful technology. Some of the leading players of the conversational AI market are Amazon Web Services, Inc., Baidu, Inc., Artificial Solutions Holding ASH AB, Conversica Inc., IBM Corporation, Haptik, Microsoft Corporation, Google LLC, Oracle Corporation, and SAP ERP. These players are focused on developing strategies such as partnerships, product development, mergers and acquisitions, and collaborations to achieve a foremost position in the global market. For instance:
- In April 2021, Microsoft Corporation, the leading provider of computer software, personal computers, consumer electronics, and related services, completed the acquisition of an AI-based technology company, Nuance Communications. The aim of this acquisition is to expand Microsoft’s strength in transcription & voice recognition technology. Microsoft with the help of Nuance’s relationships & expertise will permit healthcare benefactors with the power of ambient clinical intelligence as well as other cloud services.
- In September 2021, Kore.ai, a leading conversational AI software firm, launched SmartAssist, the first ever AI-native end-to-end Contact Center as-a-Service [CCaaS] solution of the world.
- In October 2021, Jio Platforms’ Haptik, an Indian enterprise conversational AI platform, launched a new Enterprise CX Platform to facilitate Conversational AI solutions in less than seven days.
Impact of the COVID-19 Pandemic on the Global Conversational AI Market
The COVID-19 pandemic has had a positive impact on the conversational AI market. During the pandemic, many organizations and healthcare institutions adopted chatbots for fighting against the pandemic. Businesses are adopting a more tactical approach for enduring processes, and enabling flexibility as well as scalability in their operations. This is expected to upsurge the demand for advanced technologies like conversational AI in the coming years.
Why is Conversational AI Becoming so Essential Nowadays?
Businesses have started using conversational AI in sales, marketing, and support to engage alongside the entire customer journey. One of the highly prevalent and effective application of conversational AI is in the customer service industry for enhancing customer experience.
As conversational AI does not depend on manually written scripts, it allows companies to automate extremely personalized customer service solutions. The application of this exceptional technology helps in making every communication unique and pertinent, and also reduces the efforts and resolution time. Thus, with the implementation of this technology, customers are likely to report greater levels of satisfaction, which in turn is predicted to upsurge the growth of the conversational AI market in the near future.
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