Conversational AI Market to Be Worth $54.1 Billion by 2031
Meticulous Market Research expects the worldwide conversational artificial intelligence market to reach $54.1 billion by 2031, growing at a compound annual rate of 23.9 percent.
Conversational AI, the firm said in its report, plays an important role in applications such as customer service, information technology service management, human resource management, sales and marketing management, operations and supply chain management, finance and accounting, and other applications.
Conversational AI solutions help to reduce the time and effort required by humans to perform time-consuming tasks, it said further, noting that conversational AI aims to learn from human conversations to make digital systems easy and intuitive to use.
Meticulous defines conversational AI as a combination of natural language processing (NLP), machine learning, and deep learning with traditional software, such as chatbots, voice assistants, or voice recognition systems, to help customers through either spoken or text interfaces.
The growth of the conversational AI market is driven by the surge in demand to improve call center operations and the proliferation of voice-enabled devices, according to Meticulous.
The firm also expects the high potential of AI-enabled voice assistants in the healthcare industry and the increasing proliferation of conversational AI for sales and marketing management to create growth opportunities.
At the same time, though, it said a lack of accuracy in recognizing regional accents and dialects, low awareness, and data privacy and security concerns are a major challenge for market growth.
Meticulous noted that the customer service segment is expected to account for the largest share (27 percent) of the global conversational AI market, due to the growing demand for digital assistants and chatbots for answering questions, account management, analyzing customer queries or statements, and multilingual support.
It also found that larger companiesaccount for the larger share of the market (63 percent), particularly in retail, manufacturing, healthcare, and automotive sectors, though small and mid-sized businesses are projected to register the highest CAGR through 2031.
By deployment mode, cloud-based applications account for the larger share (67 percent) of the global conversational AI market, according to Meticulous.
Meticulous' report identifies Google, Microsoft, Amazon Web Services, Oracle, IBM, NVIDIA, Baidu, Verint, SAP, AT&T, Conversica, AssemblyAI, Kore.ai, OpenAI, and DRUID as the key players in the global conversational AI market.