Conversational AI Market to Generate $16.77 Billion by 2031

Research Dive expects the global conversational artificial intelligence market to generate a revenue of $16.77 billion by 2031, growing at a compound annual rate of 24.5 percent.

The report defines the conversational AI market in terms of chatbots and virtual assistants backed by natural language processing, deep and machine learning technologies, and automatic speech recognition.

According to the analysis, cloud deployments are expected to continue outpacing on-premises deployments, particularly as companies struggle to deal with privacy and the safety of user information. It also expects the greatest adoption among firms in the financial services industery, noting that conversational AI imparts various benefits, such as fraud detection, faster resolution time, and generation of more conversions, to companies in this sector.The fundamental functions of financial services sector, such as bank account details, loan queries, bank balance inquiries, and many others can be efficiently managed by chatbots, the firm concluded.

It also expects rising demand for conversational AI solutions in the e-commerce sector to resolve consumer concerns, increase revenue, and increase customer satisfaction.

Though the COVID-19 pandemic devastated several industries, it has had a positive impact on the conversational AI market, according to the research firm, which observed increasing adoption of chatbots across healthcare and retail sector during the crisis.

The major players of the conversational AI market include Haptik, Microsoft, IBM, Conversica, Oracle, Baidu, Google, Artificial Solutions, Amazon Web Services, and SAP, according to the report.