A report by Verified Market Research stated that Global Conversational AI Market was valued at USD 3.89 billion in 2019. From 2020 to 2027, it is projected to reach USD 18.02 billion growing at a CAGR of 21.02%.
The driving factor for the growth of the market is the technological advancement and innovations in the field of artificial intelligence. Other factors propelling the growth of the market are the growing adaption of the omnichannel deployment methods and the low cost of the chatbot application. A positive impact on conversational AI market growth is visible due to the rising utilization of AI-based customer services.
The utilization of speech-based assistance, messaging apps, chatbots to automates the communication, and craft the individualized customer experiences are dealt with by Conversational AI which is a form of Artificial Intelligence. It allows people to interact with applications, websites, and devices using voice, text, touch, or gesture information. It plays a vital role in personal assistance activities and open interactions.
A combination of the natural language understanding (NLU) and machine learning (ML) by the innovations in the AI applications supports the business to grow extraordinarily with explicit information. Conversational AI allows fast interaction for users using their terminology or words and for enterprises. It offers a way to receive an unparalleled amount of essential business information by building a connection with customers through personalized interaction.
This will create a huge amount of actionable data and not just increased customer satisfaction. To achieve this, a proper understanding of the meaning and sentiment behind the conversation by the conversational chatbots need to be ensured by the enterprises. Deeper personalization can be facilitated by integrating with back-end data and third-party databases using a conversational AI solution.
Conversational AI platforms are already used by consumers in place of email, text messages, and phone calls to talk with friends and family. Nowadays, messaging over other forms of communication is the trend preferred by younger people in particular. Messaging apps are also used to arrange various social events. Moreover, traditional texting is giving way to more functional and secure messaging applications.
The driving factor for the growth of the market is the technological advancement and innovations in the field of artificial intelligence. Chatbots and virtual assistants are built by several conversational AI solution providers in the market with the help of open platforms with restricted user-specific characteristics building.