Conversational AI to Reach $41.39 Billion by 2030
The Research Insights has valued the current worldwide conversational artificial intelligence market at $14.29 billion and expects it to reach $41.39 billion by 2030, growing at a compound annual rate of 23.7 percent.
Conversational AI, it said in its report, is set to become a cornerstone of intelligent communication ecosystems and next-generation user experiences.
The conversational AI market is propelled by several key forces, primarily rooted in technological innovation and shifting consumer expectations, according to The Research Insights. Foremost among these is the continuous enhancement of natural language understanding and generative AI models, facilitating more nuanced, context-aware interactions that significantly improve user experience across platforms, the research firm concluded in its latest report.
Other contributing factors include the widespread adoption of AI-driven chatbots and virtual assistants in customer service, healthcare, and financial sectors, the proliferation of voice-enabled devices and smart home ecosystems, the growing use of conversational AI to automate internal processes, and increasing investments in AI ethics and data privacy frameworks that are enhancing user trust and ensuring regulatory compliance, according to the firm. The shift toward hyper-personalized, emotion-aware AI interactions driven by sentiment analysis and real-time behavioural insights is emerging as a game-changing trend that is redefining user engagement strategies across industries, it said in the report.
Conversational AI is instrumental in offloading repetitive, transactional queries (e.g., appointment scheduling, product recommendations, basic troubleshooting) from human agents, significantly improving operational efficiency and reducing costs, it said further.
Consumers now interact with companies across diverse platforms, ranging from mobile apps and websites to smart speakers and messaging applications such as WhatsApp, Facebook Messenger, and Slack. This demand for seamless, omnichannel communication is driving businesses to adopt conversational AI solutions that can integrate with multiple digital touchpoints and back-end enterprise systems like CRM, ERP, and helpdesk software, The Research Insights also said.
This integration allows for more contextual, data-driven, and consistent customer experiences, it said, noting that a virtual assistant integrated with a CRM system can instantly access past purchase history, recommend products, and even process returns, making each interaction highly personalized and providing businesses with valuable insights into consumer behaviour and preferences.
The report identifies Google, Microsoft, Amazon Web Services, IBM, Oracle, Nuance Communications, FIS, SAP, Artificial Solutions, Kore.ai, Avaamo, Conversica, Jio Haptik Technologies, Rasa Technologies, Solvvy, Pypestream, Kasisto, and Cognigy as the major players in the conversational AI market.