Conversational AI Market Share is Projected to Generate $62,114.7 Million by 2031Download Sample Reports Overview
The Global Conversational AI Market Size is predicted to be valued at $62,114.7 million by 2031, surging from $6,800.0 million in 2021, at a noteworthy CAGR of 25.5%.
Impact Analysis of COVID-19 on the Conversational AI Market
The novel coronavirus outbreak severely affected the global economy. To limit coronavirus transmission, numerous measures such as lockdowns, social distancing, and quarantine had been taken by government authorities worldwide. Despite this unprecedented situation, COVID-19 had a positive impact on the global conversational AI market share. Covid-19 inflicted strain on healthcare systems. The social distancing norms hampered traditional in-person medical services and demanded solutions such as chatbots that adapted to social distancing measures. In addition, fake news and misinformation created confusion among people. This, in turn, increased the number of calls to the helplines tremendously. Hence, to cope with the situation, the healthcare system increasingly adopted chatbot solutions.
Global Conversational AI Market Analysis
Conversational AI enables human users to speak naturally to an automated system. The communication could be verbal or written. The user may receive conversational AI services via chat services, specific phone or web applications, and integration into a website as a component of an operating system. Depending on the capabilities, domain, and level of embodiment of the system, conversational AI systems go under many different names. These words include chatbot, conversational agent, virtual agent, automatic agent, and bot for extremely basic systems. The growth of conversational AI is driven by the integration of conversational AI systems for commercial uses. For resolving FAQs and carrying out other clearly specified activities, chatbots offer an affordable, quick, and always-on service. Though conversational AI has been adopted in a variety of social domains, such as customer service and product recommendation, education support, medical services, entertainment, social outreach, and personal organization, quality is still a concern for more complex tasks, and conversational agent evaluation is an active area of research.
The contact between people and conversational AI systems, and occasionally even the presence of virtual agents like always-on gadgets in homes, raises a number of ethical and legal issues, including what information is gathered, who has access to it, how long the information is maintained, and where and how it is utilized. Many privacy concerns are raised. All these factors are anticipated to hinder the conversational AI market growth. As enterprises become more focused on the needs of their customers, conversational AI is still of great interest across many industries. There is no disputing the advantages and better user experience. In order to do more in the same 24 hours, modern medical professionals are increasingly leaning toward using AI on a regular basis. Healthcare professionals can benefit greatly from conversational AI, particularly when interacting with patients in distant places. An immediate requirement for a tailored assessment arises when a patient's health is at risk. Conversational AI can be useful in such a situation. Healthcare professionals can utilize telemedicine chatbots to ask about symptoms, recommend treatments, and offer clinical services remotely. These chatbots can effectively explain the guidelines and actions that patients' loved ones should take until assistance arrives.
Global Conversational AI Market, Segmentation
The global conversational AI market is segmented based on deployment, type, component, organization size, technology, end-user, and region.
Deployment segment is further classified into cloud and on-premise. The cloud sub-segment is anticipated to be fastest growing during the forecast period. Cloud-based solutions help in simplifying the chatbot development process and enable hassle-free incorporation into the company's websites as well as mobile applications. Moreover, the security of users' data is also improved with the use of cloud-based solutions. Apart from these benefits, cloud based solutions also offers other major benefits such as cost savings, flexibility, quality control, disaster recovery, and automatic software update.
The type segment is further classified into chatbots and intelligent virtual assistant (IVA). The chatbots sub-segment is anticipated to have the fastest growth during the forecast period. The use of chatbots has increased in recent years due to an increased demand for chatbots in marketing, supporting systems, education, healthcare and many others. Chatbots appear to have a great deal of potential for offering people efficient customer service that is tailored to their needs. Productivity is thought to be the primary motivator for chatbot users, with amusement, social considerations, and novelty-seeking interactions rounding out their motivations.
Component segment is further classified into solution, services, and professional service. The solution sub-segment is anticipated to be fastest growing during the forecast period. Conversational AI solutions interact between AI agents and human users. These solutions have a great prospect to revolutionize employee and customer experience. Many organizations across the world are adopting conversational AI solutions to enhance customer support and efficiency. Cloud deployment has made conversational AI solutions implementation very easy. Organizations can now incorporate conversational AI solutions with incredible speed.
Based on organization size, the global conversational AI market has been divided into large enterprises and Small and Medium Sized Enterprises (SMEs). Modern technologies are being used by large enterprises more frequently than by small ones. Larger firms have raised their budgets in recent years to invest in cutting-edge technology like conversational AI, replace dated infrastructure, and implement security measures. Larger businesses frequently have greater resources available for implementing and managing cutting-edge technologies.
Technology segment is further classified into Natural Language Processing (NLP), ML and Deep Learning, and Automatic Speech Recognition (ASR). Natural Language Processing (NLP) is the computational study of linguistic data, most often in the form of textual data like papers or publications. By utilizing linguistic insights, NLP generally aims to create a representation of the text that adds structure to the unstructured natural language.
Based on end-user, the global conversational AI market has been divided into BFSI, Healthcare, IT and Telecom, Retail and eCommerce, Education, Media and Entertainment, Automotive, and Others. Nowadays, nearly all banking and financial services-related activities, from retail banking to wealth management, are being reimagined by AI. Some of these have gained significant interest and investment. Many banks are leading the charge in using new norms of providing highly tailored and integrated customer experiences fueled by streamlined operations and expanding beyond their typical transactional relationship with customers. Financial institutions all around the world are already experimenting with highly individualized services utilizing artificial intelligence (AI). In order to give their customers context-based assistance, many banks are now using conversational AI, where the AI engine is primed with the whole product handbook, policy prior call history, procedure guidelines, and more.
The global conversational AI market in Asia-Pacific is projected to be the fastest growing during the forecast period on account of rising adoption of chatbots in healthcare, e-commerce, and BFSI sector. The pandemic surged online shopping across the Asia-Pacific region, especially in India. This in turn, increased the customer queries. Hence, to timely respond to these consumers concerns, the organizations increasingly adopted advanced technologies such as conversational AI.
Key Players in the Global Conversational AI Market
Some of the leading conversational AI market players are
- Amazon Web Services Inc.
- Artificial Solutions Holding ASH AB
- Baidu Inc.
- Conversica Inc.
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- Google LLC
- SAP ERP
In 2022, Haptik partnered with Zoho SalesIQ to increase the customer engagement across all the messaging channels.