Conversational AI Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2018 - 2028
Global Conversational AI Market: Snapshot
The conversational AI market will observe accelerated growth across the assessment period of 2018-2028. The increasing demand for enterprise-ready solutions and the rising popularity of customer-led automation will prove to be growth churners for the conversational AI market. Many companies are adopting a ‘chat-first’ strategy- a strategy in which all the customer service traffic is managed through a conversational AI solution. All these aspects will bring profitable growth for the conversational AI market.
Conversational AI is a technology that enables human-like interaction with customers through chatbots. This technology helps in bridging the gap between computer language and humans. The benefits of conversational AI such as error reduction and the deployment of humans in more productive work will bring promising growth during the forecast period.
The customization aspect of conversational AI will prove to be a prominent growth-generating factor. These applications can be coded or programmed with layers of complexity according to the end-users. The utilization of conversational AI in voice assistants like Amazon Alexa and Google Home will turn the tables of growth. In addition, the use of Automatic Speech Recognition (ASR) with conversational AI will further improve the growth prospects of the conversational AI market.
The flexibility factor plays a crucial role in the growth of the conversational AI market. These systems can run 24/7 without any breaks. This factor lays a red carpet of growth across the conversational AI market.
The COVID-19 pandemic has led to an increase in the growth rate of the conversational AI market. During the pandemic, enterprises and organizations are focusing on digitization and automation of the parts of their business to achieve better operational efficiency. The utilization of conversational AI in a situation where social distancing and crowded workplaces are a curse will bring immense growth prospects.
Global Conversational AI Market: Overview
The global conversational AI market is gaining traction, owing to the convenience it provides to the customer in delivering personalized communication. Conversational AI includes computerized programs for conducting a conversation via textual or auditory methods. Such Artificial intelligence and computer programs are mostly designed to convincingly simulate humans’ behaviors as a conversational partner, therefore passing the Turing test. Conversational AI is typically used in various dialog systems for several practical purposes such as information acquisition or customer service. All such advantages are driving the global conversational AI market.
From the perspective of applications, the global conversational AI market is segmented into chatbots, messaging apps, digital/personal assistants, and voice search. Among these applications, the personal assistants segment accounts for the largest share and is expected to boost the global conversational AI market during the forecast period. This is because of the rising demand for open conversations as well as contextualization at the same time. Many enterprises are now leveraging AI technology through using a combination of NLU and ML, which helps in training the assistants with unique business data and industry-specific knowledge. Such USPs are fueling growth in the global conversational AI market.
Global Conversational AI Market: Notable Developments
Some of the recent developments that may influence the contours of the conversational AI market in a big way are:
Some of the most prominent competitors operating in the competitive landscape of global conversational AI market include –
Global Conversational AI Market: Key Growth Dynamics
Rising Demand for AI-powered Customer Support Services to Boost Market’s Growth
The biggest strength of conversational AI lies in their potentiality to carry out human-like conversations. Conversational AI interfaces help people in finding places to eat, looking for gift recommendations, checking status of order, and also the ways for resolving a problem associated with the recently brought products. Due to all such advantages, conversational AI is becoming more ubiquitous day by day. Such factors are boosting the global conversational AI market. Along with this, rising demand for AI-powered customer support services, and growing need for Omni-channel deployment are also fueling growth in the global conversational AI market.
Furthermore, rising demand for easy-to-use, scalable, and cost-effective conversational AI solutions from various organizations, and growing need for reducing chatbot development cost are the factors majorly propelling expansion in the global conversational AI market. Along with all these, rapid proliferation rate of human-machine interactions in natural languages, rising need for efficient regular messaging, and growing demand for voice assistants are also fueling growth in the global conversational AI market.
Poor Communication Quality May Hinder Market’s Growth
High costs of the products, risk associated with malfunctioning electronic devices, and poor communication quality are the major challenges in the global conversational AI market which are hampering growth of the market. Nonetheless, such deterrents may not impact the momentum expected in the global conversational AI market in the near term.
Global Conversational AI Market: Regional Outlook
Geographically, North America is expected to lead the global conversational AI market as the region has seen rapid technological advancements. Rising investments for enhancing AI and ML technologies, rapid adoption of conversational AI, and increasing governments’ investments on AI-based technologies are also responsible for fueling growth in the conversational AI market I this region.
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