Conversational AI refers to the use of messaging apps, speech-based assistants and Chatbots to automate communication and build personalized customer experiences at scale. This technology is one type of specialized Artificial Intelligence that has gained quite a bit of traction in recent years. Owing to its major capabilities to transform and create personalized customer experiences, the global market for Conversational AI is predicted to reach USD 15.7 billion by 2024, at a CAGR of 30.2 percent.
The augmenting demand for AI-optimized customer support services and omnichannel deployment, and reduced Chatbot development costs are likely to fuel the market growth throughout the forecast period. As per the market insights, the market is projected to touch USD 4.2 billion. Moreover, the increase in customer engagement through social media platforms and incorporation of advanced AI capabilities will add value to the Conversational AI offering would give opportunities in the Conversational AI Market. For the market growth, Chatbots segment likely to seize a larger market share during the forecast timeframe, due to the increasing need in AI-powered Chatbots to evaluate customer insights in real time. This AI-based technology can be utilized by the enterprises to comprehend user behavior, their buying habits, and preference over time and as a result to answer questions.
Since Conversational AI reduces costs and increases customer engagement, for the retail and eCommerce vertical, better customer service leads to customer loyalty, customer retention, boosted conversion rate, and lessened shopping cart abandonment. Owing to the progressive increase in the number of mobile subscribers, mCommerce has played a crucial role in the retail and eCommerce industry. It assists in advancing the customer experience, workforce efficiency, and the overall functioning of the business.
Based on the region, North America is the leading market in revenue-generation in the global Conversational AI Market. The region is witnessing major developments in the conversational AI platform space. As several AI solution providers in North America are testing in the Conversational AI Market by integrating AI and Machine Learning functionalities with their existing conversational platforms, they are also adopting various growth strategies to empower their position in the global market for Conversational AI.