Conversational AI Market: Current Analysis and Forecast (2022-2030)

Conversational AI Market: Current Analysis and Forecast (2022-2030)

Conversational AI refers to the use of artificial intelligence (AI) technologies to enable computers or other digital devices to engage in human-like conversations with people. It involves natural language processing (NLP) and machine learning techniques that allow machines to understand human language, interpret the intent behind it, and generate appropriate responses. Conversational AI has rapidly advanced in recent years and is now used in a wide range of applications, including virtual assistants, chatbots, and customer service.

The Conversational AI Market is expected to grow at a steady rate of around 23% owing to the growing demand for AI-based customer support services. Moreover, the increasing popularity of AI-based chatbots and the surge in the deployment of omnichannel methods are other factors helping the market to grow. Additionally, the increasing number of products launched in the conversational AI market and increasing investment in AI are some of the most prominent factors contributing to the growth of the market. For instance, in February 2023, You.com launched multimodal conversational AI in order to challenge Microsoft and Google.

• Based on technology, the market is divided into deep learning, automated speech recognition, and natural language processing. The natural language processing segment held a prominent share of the market in 2021 and is expected to grow at a prominent CAGR during the forecasted period. This is due to technological advancements, growing demand for more sophisticated AI systems, and the availability of large amounts of data to train these systems
• On the basis of deployment, the market is bifurcated into on-premises and cloud. Among these, on-premises deployment dominated the market in 2021 mainly due to the flexibility and customization delivered to the organization. Moreover, on-premises deployment gives businesses greater control and ownership over their data and infrastructure. This is particularly important for companies that deal with sensitive or confidential information, such as financial or healthcare data, and need to maintain a high level of security and compliance
• Based on industry, the market is segmented into banking & financial services, media & entertainment, healthcare, information & communication technology, and others. The banking and financial services industry is expected to grow at a significant CAGR during the forecasted period. Conversational AI can provide a more seamless and efficient customer experience, allowing customers to access banking services and information through natural language interactions, such as voice or text-based chatbots. This can help banks to reduce wait times and improve customer satisfaction
• For a better understanding of the market adoption of the Conversational AI industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America held the major share of the global conversational AI market in 2021. technologically advanced business landscape, diverse population, the high adoption rate of digital technologies, complex healthcare industry, and focus on innovation and entrepreneurship are some of the most prominent factors driving the growth of this market in the region. Moreover, North America has a high adoption rate of digital technologies, with a large percentage of the population using smartphones, social media, and other digital platforms. Conversational AI can help businesses to engage with their customers through these platforms, providing a more seamless and convenient experience.
• Some of the major players operating in the market include IBM; Amazon Web Services, Inc.; Microsoft; Cisco Systems, Inc.; Oracle; SAP; OpenAI; Rasa Technologies Inc.; Kore.ai Inc.; and Google.