AI Market in Call Center Applications - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The AI market in call center applications is anticipated to witness a CAGR of 25.8% over the forecast period. AI technology has gained widespread recognition and adoption over the past few years. The market studied is undergoing a significant transformation. Recent technological advancements in this field have revealed new enterprises. Numerous players are emerging in this market with the hopes of navigating it toward mainstream adoption.

Key Highlights

• Over the next few years, messaging apps will have more users than social media. Tech-savvy millennials are more likely to use chatbots and messaging platforms than traditional phone calls to connect with companies and make their needs known. Thus, it has become essential for service providers to adapt accordingly.
• Future call centers are expected to be more efficient, high-performing, and predictive. AI can impact call center operations by predicting queries based on past activities of the customer, enabling effective communication to perform instant query handling irrespective of time and location, and automating processes like following up with customers.
• The market for AI in call center applications is still in its nascent stages. Developing more AI solutions that can help optimize, automate, and predict can serve as a critical driver for market adoption and penetration. Increasing usage of AI by organizations in pursuit of enhanced customer support service offerings, the increasing role of social media for customer engagement, and the exponential growth of data through the Internet of Things (IoT) and social media are some other significant factors influencing the growth of the AI market in call center applications. In contrast, a lack of skilled labor and unsupervised learning are expected to hinder market growth.
• A research study by Oracle indicated that more than 80% of organizations already use chatbots for their customer experience or plan to do so. Respondents said that AI would help them provide service 24 hours a day, answer questions right away, and find answers to simple questions.

AI in Call Center Applications Market Trends

BFSI Vertical is Expected to Hold the Largest Market Size During Forecast Period

• The BFSI industry is at the forefront of implementing AI-enabled applications.The vertical is expected to lead the market for AI in call center applications during the forecast period owing to the highest adoption of AI call center platforms and solutions compared to any other industry.
• The BFSI Vertical was the first to use intelligent chatbots powered by AI, redefining the customer experience.These chatbots interact with their users to give them a way to automate a number of back-end tasks.
• AI solutions offered for call centers help BFSI institutions connect with customers and improve their experiences while simultaneously helping to lower customer churn. By implementing these solutions, BFSI organizations can reduce call center operational costs while also allowing tech-savvy customers to converse at their leisure. A recent survey conducted by Econsultancy revealed that more than 80% of customers preferred live chat over a telephonic conversation. The Innovation Center for Artificial Intelligence claimed that chatbots saved the banking sector nearly $8 billion in the previous year.
• Many BFSI organizations are still in the process of transitioning from traditional banking services to modern-day digital experiences. These organizations would be able to market their services and provide excellent customer service with AI solutions, thereby driving the market's growth. Other things that are driving the growth of the AI market in BFSI call centers are the ability to help customers at any time, to keep customers engaged, and to help them right away.

North America Is Expected To Hold a Large Share of the AI Market in Call Center Applications

• The AI market in call center applications is currently dominated by companies in North America, Europe, and Asia. North America is expected to hold the largest share of the market studied and maintain its dominance during the forecast period. Some of the things that are driving the growth of the market are the speed with which technology is changing, the presence of global vendors in the market, and the growing use of AI solutions in the region.
• One of the largest insurance companies in the United States, MetLife, adopted an AI system to improve responses to customers’ emotional needs. The system was made so that employees could keep track of and watch how customers felt during conversations, which would improve the quality of customer service.
• According to a global survey of nearly 600 executives conducted by MIT Technology, more than 90% of companies in North America had integrated AI into their systems to improve the customer experience. About 60% of the people who answered the survey think that AI-based solutions will increase the lifetime value of customers by next year.
• Asia Pacific (APAC) is the fastest-growing market. It is expected to provide lucrative opportunities for AI solution providers for call centers owing to the increasing number of startup companies in the region. Security concerns and a lack of skilled workers and supporting infrastructure in the region could affect the adoption of AI solutions and services.

AI in Call Center Applications Market Competitor Analysis

The AI market in call center applications is a highly competitive market currently dominated by a few players with technological expertise in AI technology. The global market is expected to be consolidated in nature. Major players with a prominent share in the market are focusing on expanding their customer base across foreign countries by leveraging strategic collaborative initiatives to increase their market share and profitability. Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Amazon Web Services Inc., Avaya Inc., Nuance Communications, Inc., Kore.ai, Inc., Haptik, Inc., Artificial Solutions International AB, Rulai, Inc., and Zendesk, Inc. are some of the major players present in the current market.

In August 2022, in order to introduce a new integration that enables users to link AI-powered virtual agents with their call centers quickly, IBM worked with NICE. IBM and NICE worked together to make it even easier for your contact center to create, deploy, and scale AI-powered virtual speech agents without writing a single line of code.

In June 2022, Amazon Connect, a cloud contact center service, was launched by Amazon Web Services (AWS). AWS claimed to be unique and employ artificial intelligence (AI) to completely transform call centers. AWS has added a number of new features to Amazon Connect that fulfill its initial proposal. By adding AI and machine learning (ML) to the contact center, the three new features completely change how customers and agents work together.

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• The market estimate (ME) sheet in Excel format
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