Conversational AI Market to Hit $32.5 Billion by 2028
Brandessence Market Research and Consulting valued the global conversational artificial intelligence market at $8.24 billion in 2022 and expects it to reach $32.51 billion by 2028, registering a compound annual growth rate of 21.6 percent.
The firm cites increasing adoption of smart devices, technological advancements in the field, elevating demand for AI-powered customer support solutions, widespread digitalization, increasing number of chatbot and virtual assistant launches by tech pioneers, and surging social media penetration for building the momentum of the market.
The research firm identified Google, OpenAI, Microsoft, Amazon Web Services, IBM, Oracle, Nuance Communications, FIS, SAP, Artificial Solutions, Kore.ai, Avaamo, Conversica, Jio Haptik Technologies, Rasa Technologies, Solvvy, Pypestream, Kasisto, Cognigy, Inbenta Technologies, Baidu, Creative Virtual, SoundHound, MindMeld, and Gupshup as leading vendors of conversational AI technologies.
Brandessence found that the retail and e-commerce segment is leading the industry in terms of market share. At the same time, it observed a rising deployment of AI-based chatbots and virtual assistants in customer support.
"Chatbots and virtual assistants integrated with conversational AI technologies can skilfully answer customer queries in real time without human intervention. This, in turn, enables organizations to reduce their overall operational costs and chances of human errors," the firm concluded.