The advancement of mobile devices and the increase of digital native populations are likely to have a significant impact on the conversational AI market forecast in the coming years. People expect to communicate with their governments online. Also, public sector organizations implement conversational AI to boost output and efficiency, enhancing the entire process of digitally delivering citizen services. Conversational AI chatbot’s cognitive abilities help customers during their online shopping process. Conversational AI products support a limited number of languages, and English suits best with most chatbots and virtual assistants.
Furthermore, conversational AI solutions have begun to include linguistic support for local languages, and their use is becoming prevalent across the world. Leading companies in the market are concentrated on improving the products and services they provide. In November 2021, Google introduced Bot-in-a-Box to expand its activities in conversational AI. Businesses can submit a chatbot with an up-to-date customer FAQ document, whether from an internal document or a web page, to the Bot-in-a-Box platform to maintain uncomplicated client support. The new Google Cloud apps make it simpler for businesses to introduce chatbots that leverage their current customer FAQs. Such developments by the market players fuel the conversational AI market growth.
China Holds Largest Share of Conversational AI Market in Asia Pacific
According to the ITA, the e-commerce market of China is the largest in the world and generates almost 50% of the world’s transactions. Online retail transactions in the country reached more than 710 million digital buyers, contributing ~US$ 2.29 trillion in 2020, and are expected to reach US$ 3.56 trillion by 2024. Further, the government of China is taking various initiatives for the growth of the e-commerce industry. For instance, in February 2021, China’s State Council introduced the Antitrust Guidelines for the Platform Economy to stop the monopolistic behaviors of large companies and promote the sustainable and healthy development of online commerce. Thus, the growing e-commerce sector in China propels the conversational AI market growth.
Conversational AI Market Analysis: Segmental Overview
Based on component, the conversational AI market is bifurcated into platform and services. The platform segment held a larger conversational AI market share in 2022 and is anticipated to record a higher CAGR during 2022–2030. In terms of type, the market is categorized into chatbots and intelligent virtual assistants. The chatbots segment held a larger conversational AI market share in 2022 and is anticipated to record a higher CAGR during 2022–2030. In terms of deployment type, the market is categorized into on-premise and cloud. The on-premise segment accounted for a larger share of the market in 2022, whereas the cloud segment is anticipated to register a higher CAGR during 2022–2030. Based on industry, the market is segmented into retail and e-commerce, healthcare and life sciences, travel and hospitality, BFSI, IT and telecom, media and entertainment, and others. The retail and e-commerce segment held the largest market share in 2022 and is anticipated to record the highest CAGR during 2022–2030.
Conversational AI Market: Competitive Landscape and Key Developments
Amazon Web Services Inc, IBM Corporation, Google LLC, Oracle, SAP SE, Microsoft Corp, Artificial Solutions International AB, Cognigy, Kore.ai Inc, and Rasa Technologies Inc are among the key players profiled in the conversational AI market report. Several other major players were also studied and analyzed in the conversational AI market report to get a holistic view of the market and its ecosystem. The report provides detailed market insights to help major players strategize their growth.
- In August 2023, Inbenta, an AI platform purpose-built to optimize customer experience, announced its acquisition of Horizn, a provider of easy-to-embed interactive product demos, further expanding Inbenta’s customer experience platform. The acquisition adds a new component to Inbenta’s customer service toolkit, allowing companies to rapidly develop, edit, and deploy helpful step-by-step tutorials, improving self-service and reducing agent escalation.
- In May 2023, LivePerson, a global leader in conversational AI, announced the launch of EAI, a new class of AI that is equal, enterprise-grade, and for everyone. EAI makes the power of generative AI and large language models accessible to businesses of all sizes and even individuals in a way that restores a sense of control and safety. The dawn of generative AI has taken the world by storm, and organizations of all kinds are looking to implement it to boost productivity and drive better outcomes.
- In February 2023, Google launched Bard, its own AI chatbot similar to ChatGPT. The power behind Bard is Google’s language model for dialogue applications, aka LaMDA. This new AI chatbot will use the information on the web to craft novel responses creatively or in a detailed manner, or sometimes both.
- In July 2021, Moveworks, the AI platform that automates support at work, released new product enhancements to help employees navigate large and complex enterprise environments. They include a self-learning conversational AI technique, Adaptive Response, which generates customized responses to employees’ requests in real time. Critically, the technique allows Moveworks to offer more than one relevant solution — for instance, a form plus a knowledge article — and to adapt future responses based on usage data.