Conversational AI : Understanding the Market
The global conversational AI market is expected to experience significant growth in the coming years, with a projected compound annual growth rate of 22% between 2020 and 2025. In 2020, the market size was $5.18 billion, but it is expected to reach $14.00 billion by 2025. This growth is primarily driven by the increasing demand for customer support services, which have become more reliant on digital and self-service platforms due to the COVID-19 pandemic. It is predicted that by 2023, more than 60% of all customer service engagements will be delivered through these platforms, up from 23% in 2020.
Conversational AI contributed to the most number of AI patents filed in 2019. Key attributes of this technology include cognitive skills, cross-departmental collaboration, fluid intelligence, and networking. Some of the trends to look out for in the market include self-learning chatbots, API integration, voice enablement, and virtual agent networks.
A wide range of industries are adopting conversational AI for their day-to-day operations, including banking, financial services, and insurance; retail and e-commerce; healthcare and life science; travel and hospitality; education; and media and entertainment. These industries are using chatbots for tasks such as virtual financial assistance, call center automation, real-time customer support, and personalized content delivery. To support the rapid development of conversational AI, technology infrastructure such as conversation AI platforms, cloud infrastructure, natural language processing platforms, robotic process automation, deep learning/content building platforms, and analytics tools are needed.