Conversational Artificial Intelligence Market
Recommended soundtrack: The Blues Masterpieces, Charlie Patton
Conversational AI Market Report
The conversational AI market has been experiencing tremendous growth, fueled by the rising demand for automated customer support, virtual assistants, and intelligent chatbots across various industries. Conversational AI solutions leverage natural language processing to enable natural language interactions between humans and machines, driving efficiency and enhancing user experiences.
Market Overview
The global conversational AI market size was valued at $6.8 billion in 2022 and is projected to reach a staggering $32.6 billion by 2030, growing at an impressive compound annual growth rate (CAGR) of 21.6% during the forecast period (Grand View Research, 2022). This rapid expansion is attributed to the increasing need for round-the-clock customer support services, cost optimization strategies, and the proliferation of messaging applications and virtual assistants.
Key Players and Capabilities
The conversational AI market landscape comprises a diverse array of vendors, each offering unique solutions and capabilities across different layers of the AI stack.
(see table)
As the table illustrates, the majority of vendors offer comprehensive capabilities spanning various layers of the AI stack, including natural language processing (NLP), dialogue management, intent recognition, entity extraction, and sentiment analysis. Furthermore, most vendors support multiple languages and provide both cloud and on-premises deployment options, catering to the diverse needs of businesses across industries.
Other Notable Vendors:
Rasa
Pandorabots
Botpress
Botkit
Clinc
Market Trends and Future Outlook
The conversational AI market is expected to witness several noteworthy trends and developments in the coming years:
Increased adoption of conversational AI in customer service Businesses will continue to leverage conversational AI solutions to automate customer support services, reduce response times, and improve overall customer satisfaction levels.
Integration with messaging platforms
Conversational AI solutions will increasingly integrate with popular messaging platforms like Facebook Messenger, WhatsApp, and WeChat to reach customers on the channels they prefer.
Advancements in natural language understanding (NLU)
Vendors will focus on enhancing NLU capabilities to better comprehend user intent, handle complex queries, and provide more accurate responses.
Personalization and contextualization
Conversational AI solutions will leverage user data and contextual information to deliver personalized experiences and tailored recommendations.
Increased adoption in enterprise applications
Beyond customer service, conversational AI will find applications in internal enterprise processes, such as HR support, IT helpdesk, and knowledge management.
Conclusion
The conversational AI market is poised for significant growth, driven by the increasing demand for automated customer support and the need for personalized user experiences. With a projected market size of $32.6 billion by 2030, the market comprises a diverse range of vendors offering comprehensive capabilities across different layers of the AI stack. As the market evolves, vendors will focus on improving natural language understanding, integrating with messaging platforms, and delivering personalized experiences. Businesses that effectively leverage conversational AI will be well-positioned to enhance customer engagement, improve operational efficiency, and gain a competitive edge in their respective industries.
Vendors:
Here is a list of key vendors in the conversational AI market:
Kore.ai
IBM (Watson Assistant)
Amelia (IPsoft)
Avaamo
Cognigy
OneReach.ai
Emilia (Ubisent)
Google (Dialogflow)
Openstream.ai
Yellow.ai
Sprinkle
Amazon Web Services (AWS Lex)
Boost.ai
Aisera
Lay
24/7.ai
Unbent
Sinch
eGain
Rasa
Pandorabots
Botpress
Botkit
Clinc
Microsoft (Azure Bot Service)
Oracle (Digital Assistant)
Salesforce (Einstein Bots)
SAP (Conversational AI)
Nuance (Conversational AI)
Inbenta
Artificial Solutions
Rulai
Cognigy
Huawei (Conversational AI)
Recast.AI
Haptik
Passage AI
Konverse AI
Senseforth.ai
Kasisto
