The conversational AI market enables organizations to interact with customers through natural language conversations using artificial intelligence and machine learning capabilities. Conversational AI helps deliver personalized, streamlined, and engaging customer experiences across multiple channels such as messaging platforms, mobile applications, smart speakers, and virtual assistants. Voice assistants like Alexa, Cortana, and Google Assistant use conversational AI to allow users to operate devices and access information through natural language conversations. These assistants are now expanding beyond smart speakers into automotive infotainment systems. Conversational chatbots powered by conversational AI are also being adopted by organizations across industries to automate customer support queries and streamline internal processes like procurement, administration, and employee onboarding.
The Global Conversational AI Market is estimated to be valued at US$ 10.65 Bn in 2024 and is expected to exhibit a CAGR of 22 % over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Conversational Ai Market Growth are Google, Microsoft, Amazon Web Services, Inc., IBM, Oracle, Nuance Communications, Inc., FIS, SAP SE, Artificial Solutions, Kore.ai, Inc., Avaamo, Conversica, Inc. and Jio Haptik Technologies Ltd. Major players are focusing on advancing their conversational AI technologies through investments in natural language processing and deep learning. For instance, in 2022, Google announced the general availability of its conversation modeling tool called Constitutional AI to help build ethical and inclusive conversational AI models.
Growing applications of conversational AI across industries such as healthcare, retail, BFSI, telecom and travel is driving the market growth. Conversational AI is enabling healthcare organizations to provide virtual healthcare assistance to remotely monitor patients, answer health queries and schedule appointments. In the retail industry, conversational chatbots and virtual shopping assistants are enhancing customer experience.
The conversational AI market is witnessing significant expansion in Asia Pacific and Middle East & Africa. Rapid digitalization of businesses across countries like India, China, and UAE is augmenting the adoption of conversational AI. Increasing investments by technology companies in these regions is also supporting the market growth. For example, in 2021, IBM established its first Client Innovation Centre in Vietnam to drive adoption of AI, cloud and other technologies among local businesses.
Get more insights on Conversational AI Market