Conversational AI Market to Reach USD 54.81 Billion by 2031 As Revealed In New Report – WhaTech

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The Conversational AI market has witnessed unprecedented growth in recent years, fueled by advancements in natural language processing (NLP) and machine learning technologies


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The SNS Insider report estimates the Conversational AI market size at USD 10.53 Billion in 2023, with a projected growth to USD 54.81 Billion by 2031, reflecting a significant CAGR of 22.89% over the forecast period. Conversational AI solutions encompass a wide range of technologies, including chatbots, virtual assistants, AI-powered messaging platforms, and natural language processing (NLP) tools. These solutions allow businesses to automate customer interactions, gather valuable data, and personalize engagement strategies.

Market Analysis:

Customers expect fast, efficient, and personalized experiences. Conversational AI solutions, such as chatbots and virtual assistants, offer a cost-effective way to handle high volumes of repetitive inquiries, freeing up human agents for more complex issues.Advancements in AI and machine learning are making chatbot development more affordable and accessible. This is fueling adoption across companies of all sizes, democratizing access to this powerful technology.Conversational AI solutions are integrating seamlessly with various communication channels like websites, mobile apps, messaging platforms, and social media. This omnichannel approach allows businesses to connect with customers on their preferred platforms, leading to more meaningful interactions.Traditional mobile and web applications are evolving with the adoption of AI-powered messaging and voice-based interfaces. This shift creates a new communication paradigm, offering a more natural and user-friendly experience.

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Major The Key Players of Conversational AI Market

Amazon Web Services, Inc., Artificial Solutions Holding ASH AB, Baidu, Inc., Conversica Inc., Haptik, IBM Corporation, Microsoft Corporation, Oracle Corporation, Google LLC, SAP ERP

Segment Analysis:

The chatbot segment dominates the market with a revenue share of more than 43%, based on conversations interface. Significant advancements in machine learning (ML) and Natural Language Processing (NLP) within chatbots are driving market growth.In terms of data collection, customer engagement, clarity of products and services, and facilitation of appointments, chatbots are excellent. With improved NLP, chatbots are able to mimic human language thanks to deep learning models and ML algorithms that make them more accurate and aware of contexts. The segment of Intelligent Virtual Assistants in the form of Artificial Intelligence service providers creating personalised virtual assistants and chatbots is expected to grow at a compound annual growth rate during the forecast period.

On the basis of channel, mobile apps segment to have largest market During the forecast period, Conversational AI allows businesses to maintain a contextual and continuous messaging experience through features such as triggered messages, contextual information, inapp campaigns, sales bots, and intelligent message routing.This technology serves as a personal assistant within mobile apps, offering enhanced Natural Language Understanding (NLU) capabilities, seamless integration with business and consumer data, and rapid execution of interconnected algorithms for delivering hyper-personalized content in a human-centric conversational interface.

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Key Market Segments

By Offering:

  • Solutions
  • Services
    • Training & Consulting
    • System Integration & Implementation
    • Support & Maintenance

By Conversational Interface

  • Chatbots
  • Interactive Voice Routing (IVR)
  • Intelligent Virtual Assistants (IVA)

Regional Analysis:

The North American region leads the market with over 27% of revenues, driven by increased adoption of new technologies and rising demand for AI powered customer support services. In order to meet customer needs, companies in the region are making investments in technology that will further increase demand for conversational AI as a result of an increasing focus on health consciousness.Technologies such as Augmented Reality, Virtual Reality, Robotics, and Artificial Intelligence are being used in the healthcare sector in North America to integrate conversational AI with intelligent virtual agents for effective communication.

Key Takeaways:

  • The conversational AI market is experiencing significant growth due to the increasing demand for AI-powered customer support solutions.
  • Reduced chatbot development costs and omnichannel deployment are further accelerating market expansion.
  • North America currently dominates the market, but the Asia Pacific region is poised for the fastest growth.
  • Advancements in AI, such as ChatGPT’s ability to engage in meaningful conversations, will continue to shape the conversational AI landscape.

Recent Developments:

February 2023: OpenAI released ChatGPT, a conversational AI model capable of holding in-depth discussions and correcting misconceptions.

January 2023: Microsoft launched the Azure OpenAI Service, providing businesses access to leading AI models like GPT-3.5 and ChatGPT through Microsoft’s secure cloud infrastructure.

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