Conversational AI Market to Be Worth $49.80 Billion by 2031

Research firm MarketsandMarkets expects the conversational artificial intelligence market to expand from $17.05 billion today to $49.8 billion by 2031 at a compound annual rate of 19.6 percent.

The firm cites as a major influencer of this growth the rising demand for AI-powered customer support solutions as businesses increasingly seek to enhance user experience while reducing operational costs. Other factors include the widespread adoption of messaging apps and voice-enabled assistants; the growing emphasis on omnichannel engagement strategies across industries such as e-commerce, banking, and healthcare; and advances in natural language processing (NLP) and machine learning technologies that have significantly improved the accuracy and contextual understanding of AI systems, making them more effective in real-time interactions.

Companies are increasingly embedding conversational AI into systems such as CRM, enterprise resource planning, human relations, and IT platforms to automate routine tasks, improve employee experience, and enhance customer support, it said further, noting that this integration allows businesses to unlock real-time insights, reduce operational bottlenecks, and drive data-driven decisions.

Of all the technologies involved, generative AI agents are poised for the fastest growth due to their ability to produce intelligent, context-aware, and fluid responses, according to MarketsandMarkets. These agents leverage advanced deep learning models to interpret user intent, maintain conversational continuity, and generate personalized outputs in real time, it said, noting that their scalability and adaptability make them suitable for diverse sectors such as healthcare, banking, retail, and enterprise support.

Increasing demand for 24/7 automated customer service, rising expectations for natural human-computer interaction, advancements in language modeling, multilingual support, and emotional intelligence capabilities are also expanding their use cases. As businesses seek to improve customer engagement and operational efficiency, investments in generative AI agents are expected to surge.

MarketsandMarkets identified the major players in the conversational AI market as Microsoft, IBM, Google, OpenAI, Baidu, Boost.ai, Verloop.io, OneReach.ai, Omilia, Aisera, Amazon Web Services, Oracle, SAP, Verint, Twilio, Sprinklr, LivePerson, [24]7.ai, Gupshup, Yellow.ai, Anthropic, Kore.AI, Uniphore, eGain, SoundHound AI, Gridspace, Avaamo, Conversica, Inbenta, Creative Virtual, Kasisto, MindMeld, Haptik, Teneo.ai, Cognigy, Rasa, Sarthi.ai, Senseforth.ai, Exceed.ai, Clinc, Laiye, Rulai, Quiq, and Pypestream.