The Conversational AI market is growing. There is a surge in demand for AI-based solutions that improve customer experiences, reduce costs, and increase efficiency across organizations.
The demand for AI-based chatbots, specifically, is driving the majority of this growth. Both customers and businesses are realizing just how much chatbots have improved in the past few years.
Chatbots have evolved to the point where they increase relevance, context, speed, and, personalization. In a world where customer experience is everything, these attributes are no longer optional.
In this article, we’ll go over important conversational AI statistics that business leaders should know, as well as some important considerations moving forward.
Conversational AI refers to technology (like chatbots, voice assistants, or conversational applications) that simulates a human conversation.
Conversational AI can be simple. For example, rule-based AI uses a series of predefined rules to guide people towards a goal.
Or, conversational AI can be more complex. For example, machine learning chatbots learn and adapt without following explicit instructions, by using algorithms and statistical models.
Conversational AI can be divided into five different subcategories:
- AI chatbots
- Rule-based chatbots
- Hybrid chatbots
- Voice bots/assistants
- Interactive voice assistants (IVA)
In case you missed it: The Complete Guide to Conversational Artificial Intelligence
Conversational AI statistics often vary from one source to another, because the market is still in its infancy. For that reason, we curated statistics from trusted research firms only.
We organized these conversational AI statistics by market size, use cases, value, and challenges. Below are our top picks.
- The global conversational AI market size, including chatbots and intelligent virtual assistants, is expected to grow to at a CAGR of 30.2% to $22.6 billion by 2024. (Deloitte)
- By 2030, the global conversational AI market size is projected to reach $32.6 billion. (Allied Market Research)
- The volume of interactions handled by conversational agents increased by as much as 250% in multiple industries since the pandemic. (Gartner)
- According to a survey of 1,000 business and technology executives, ‘improving customer experiences’ was the area in which they realized the most value from AI initiatives. (PwC)
- Chatbots currently represent the top use of AI in enterprises, and their adoption rates are expected to almost double over the next two to five years. (Forbes)
- Nearly 80% of CEOs have changed or intend to change how they manage client engagement using conversational AI technologies. (Accenture)
- 70% of white-collar workers will interact regularly with conversational platforms this year. (Gartner)
- 90% of businesses that use chatbots for customer support saw just a $0.70 cost per interaction and saved up to 4 minutes per inquiry. (Juniper Research)
- Around 90% of companies mentioned faster complaint resolution and over 80% reported increased call volume processing using conversational AI solutions (MIT)
- 57% of businesses believe chatbots deliver a large return on investment (ROI) for minimal effort (Accenture)
- Opportunity for between 15 – 70% cost reduction, depending upon the customer channel interactions deflected into Conversational AI enabled channels (Deloitte)
- The retail, banking, and healthcare sectors will realize business cost savings of $11 billion annually by next year (2023), up from an estimated $6 billion in 2018. (Juniper Research)
- The global chatbot market in the banking, financial services and insurance sectors was valued at $586 million in 2019 and it is expected to reach $7 billion in 2030. (NMSC)
- 87% of users said they would interact with a travel chatbot if it could save them both time and money. (Humley)
- Setup challenges, including training data and maintenance, were among the top reasons for not implementing chatbots in enterprises. (Deloitte)
- Although 77% of industry leaders report that their organizations have built digital platforms, only 10% report that those platforms are fully scaled and adopted by customers. (McKinsey)
- According to Accenture Digital Chatbot Report, 44% of companies who weren't planning to implement Conversational AI said that the main reason was due to a lack of skilled developers, not for a lack of interest.
As consumers grow more reliant on digital platforms and services, they expect more from them than ever before. They are comparing their experiences to those set by leading tech companies, and expect the same level of convenience across the board.
AI-powered conversational solutions will be the way businesses stay competitive. These solutions make experiences faster, more convenient, more personalized, and ultimately better for both customers and profit margins.
These trends will drive the proliferation of platforms, services, support and maintenance, training, and system integration needs. The cost and barriers to entry will continue to decrease, making conversational AI an affordable and accessible solution for SMEs and enterprises alike.
Soon, conversational AI will be something most people interact with on a daily basis. The statistics above show that we are not far from that reality.