Conversational AI Market to Grow at CAGR of 24% through 2033 – Introduction of Generative Models in AI to Bolster Growth

Conversational AI market size from USD 8.5 Billion in 2023 to USD 73.05 Billion in 10 years. Increased demand for AI-powered digital experience will drive the conversational AI market’s growth. North America region emerged as the largest market for the global conversational AI market, accounting for 27.5% of the total market.

Newark, Feb. 12, 2024 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 8.5 Billion Conversational AI market will reach USD 73.05 Billion by 2033. The introduction of generative models in AI is one major factor that may create lucrative opportunities for Conversational AI devices in the market. Conversational AI has widened the scope for almost all IT tech firms, where the developers can copy the codes to save their time and increase their productivity thereby focusing on multiple tasks simultaneously and enhancing their speed and efficiency. Thus, higher use of generative models may boost Conversational AI’s growth in the period forecasted.

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Key Insights on Conversational AI market

North America accounts for the largest market size during the forecast period accounting for 27.5% of the total market. Whereas Asia Pacific is expected to be the fastest-growing region in the period forecasted.

North America emerged as the largest market for the global Conversational AI market, accounting for 27.5% of the total market. Owing to increasing demand for Voice-based searches, increased demand for smartphones, and the highest penetration of various market players have propelled the growth of Conversational AI in the region. Whereas, Asia Pacific accounts for the highest growth rate in the market (18.7%), owing to an increased rate of technical experts in the region.

Cloud has dominated the market accounting for 38% of the total market.

Cloud has dominated the market accounting for 38% of the total market. Rising demand for storing larger data and data files in the organization and better comprehension of the current market trends within the industry has played a pivotal role in the growth of the market in the period forecasted

E-Commerce accounted for the largest share of the market share of 24% in 2023.

The E-Commerce segment has dominated the Conversational AI market with a market share of 24% in 2023. It is also expected to be the fastest-growing segment across the globe. Owing to the increased adoption of Chatbots and Virtual assistants to provide 24*7 service to its services.

Chatbot has dominated the market in the year 2023.

The chatbot segment has dominated the Conversational AI market and happens to be the fastest-growing segment within the market. It has acquired the market share of 25% in 2023. Owing to ease of use and increased adoption in a variety of End-User Industries.

NLP has dominated the Technology segment in the Conversational AI in market, in the year 2023.

NLP has dominated the Conversational AI market. Thereby acquiring 48% of the revenue in the global market in the year 2023. Breakthroughs in technology have constantly helped organizations to thrive in the market and comprehend complex user problems in more effortless ways.

Report Scope and Segmentation –

Report Coverage Details
Forecast Period 2024-2033
Forecast CAGR 24%
2033 Value Projection USD 73.05 Billion
Market Size in 2023 USD 8.5 Billion
Historical Data 2020-2022
No. of Pages 238
Report Coverage Revenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends
Segments Covered Deployment Mode, End-user Industry, Type, Regions
Regions Covered The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Conversational AI Market Growth Drivers Increased demand for AI-powered digital experience

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Latest Development:

● In February 2023, Open AI introduced an AI Tool Chat GPT. A conversational tool that is not only capable of solving day-to-day functional tasks but also helps the client solve their professional tasks, interacting with them like humans, and responding to them with anything they want.

● In February, Google launched a new conversational AI tool “Bard”. The primary motto of this launch was to bring Google’s AI excellence and the human capability of massive language models under one umbrella.

● In January 2023, Microsoft launched Azure AI Service. The primary aim of this launch was to enhance grade capabilities and build enterprise cutting-edge solutions for its ultimate clients. This in turn will help Microsoft enhance its employee productivity thereby boosting the organization’s goals in the period forecasted

Market Dynamics

Drivers: Increased demand for AI-powered digital experience

Conversational AI is increasingly becoming most empowered technology to boost digital experience. Users, across the globe, are exponentially using Conversational AI to engage with brands and other organizations on a larger scale. For this, the majority of the end-user industries are also using this technology to boost their presence across the globe and streamline their user engagement to a huge extent

Restraint: Threat towards data breach and data security

One great threat that might hamper the growth of Conversational AI in the market is data security and data breach. Malware, phishing, cache hindrance, and ransomware are some of the major threats that may be used in employee personification. Which, in turn, may harm the organization’s credibility and lack of security issues with the organization.

Opportunity: Introduction of generative models in AI

Conversational AI has widened the scope for almost all IT tech firms, where the developers can copy the codes to save their time and increase their productivity thereby focusing on multiple tasks simultaneously and enhancing their speed and efficiency. Thus, higher use of generative models may boost Conversational AI’s growth in the period forecasted.

Challenge: Threat of disclosing sensitive information

The threat of disclosing sensitive information is one major challenge that may hinder the growth of Conversational AI in the market. The customers may write some sensitive information thereby expecting some answers in return, which may be frustrating to the end user if incomplete or wrong answers are provided in return.

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Some of the major players operating in the Conversational AI market are:

Artificial Solutions
Baidu
IBM Corporation
Amazon Web Sevices Inc
Oracle Corporation
Google LLC
SAP SE
Microsoft Corporation
OpenAI
Kore.ai

Key Segments cover in the market:

By Deployment Mode:

● On-premises
● Cloud-based

By End-User:

● BFSI
● Retail
● E-Commerce
● Healthcare & Life Science
● Media and Entertainment
● Education
● Others

By Type:

● Chatbots
● Intelligent Virtual Assistant (IVA)

By Technology:

● Natural Language Processing (NLP)
● Machine Learning & Deep Learning
● Automatic Speech Recognition

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About the report:

The global Conversational AI market is analysed based on value (USD trillion). All the segments have been analysed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter’s five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirements whether they are looking to expand or planning to launch a new product in the global market.

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