Conversational AI Market Size, Share & Trends Analysis Report By Type (Chatbots, IVA), By Deployment (Cloud, On-premise), By Technology (NLP, ASR), By End-user (Healthcare, BFSI), By Component, And Segment Forecasts, 2023 - 2030

Conversational AI Market Growth & Trends

The global conversational AI market size is anticipated to reach USD 41.39 billion by 2030, registering a CAGR of 23.6% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth is driven by user engagement across platforms and the growing deployment of powerful AI technology. It shows that consumers and businesses alike see technology as a way to grow their operations. Since conversational AI is becoming a more important technology, businesses must apply virtual assistants or chatbots with the right goals in mind. The rapid expansion of the E-commerce sector and digitalization is creating ideal circumstances for the demand for customer support services.

Global market adoption of AI is boosted by omnichannel deployment, 24/7 improved customer service, real-time customized service, and lower customer service costs. A new enterprise CX Platform was launched by Jio platform's Haptik in October 2021 to support conversational AI solutions. With the help of this platform, businesses may quickly launch intelligent virtual assistants in a low-code environment. The market growth is predicted to be aided by the service sector's expanding 'Chat first' approach and technological advancements like natural language processing (NLP). In November 2021, with the introduction of new conversational AI technology by ZeroShotBot, chatbots of all sizes are now considered standard.

With ZeroShotBot, anybody can create a fully functional chatbot without any coding knowledge due to innovative technology that eliminates the requirement for training data. Moreover, in January 2022, Visionstate Corp. introduced innovative Vicci 2.0, a state-of-the-art conversational chatbot AI-powered customer service kiosk. Visionstate is implementing this technology into its Vicci 2.0 platform to serve on-site customer service influenced by AI. The Vicci 2.0 platform can back a broad range of consumers through its modification capability to support various languages. However, the need for expertsto handle conversational AI and a lack of awareness of conversational AI prevent conversational AI from becoming widely used.

Offering a top-notch digital experience is more important for businesses. Customer experience firms now can swiftly and efficiently address complicated questions and inquiries because of the development of conversational AI. Major players in the market are engaged in partnerships and strategic collaborations to enhance their products and service offerings and expand the consumer base. For instance, to upgrade omnichannel competencies like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Human Resources Management System (HRMS), Yellow.ai and Tech Mahindra jointly develop next-generation conversational-AI technologies.

Conversational AI Market Report Highlights

• North America dominated the market in 2022 due to the massive adoption of upcoming technological advancements in the region and the rapidly growing demand for customer support services powered by AI
• Key factors influencing the market growth are rising demand and reduced chatbot development costs, AI-powered customer support services, and omnichannel deployment
• The adoption of enhanced AI capabilities to add value to current conversational AI offerings and the ever-growing demand for online shopping during COVID-19 have offered growth opportunities for the market
• Although, the requirement for trained professionals to handle conversational AI, along with a lack of knowledge about conversational AI, is affecting the market penetration of conversational AI
• Currently, the focus of businesses has deviated from delivering customer support services through messages or emails to AI-enhanced chatbots. These chatbots aid companies improve consumer interaction and experience

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