The AI chatbot market is expected to grow at a CAGR of 24.53%, reaching a market size of US$46.641 billion in 2029 from US$15.572 billion in 2024.
An AI chatbot is a virtual computer program powered by artificial intelligence (AI) that is made to mimic conversations with human beings through the internet. Different technologies and methods can be applied in building them among which are: natural language processing (NLP) and machine learning (ML). Different categories of chatbots exist, such as rule-based and self-learning. Rule-based chatbots require pre-defined rules in handling queries; therefore, they use explicit decision trees. On the contrary, self-learning chatbots depend on AI and ML to learn from their interactions with customers and improve their responses over time.
Companies and corporations often utilize them for automating mundane activities while enhancing customer interactions. Furthermore, they might be merged with mobile applications and messaging platforms, providing users with swift and easy entry points for data and services. For example, they integrate into e-commerce sites, supporting users through product recommendations, ordering, and tracking delivery. In addition, they also serve students with swift access to information, answer questions, and support the learning process. In the same way, they can support citizens who want information about government services such as renewing driving licenses or paying taxes.
Furthermore, it contributes to e-commerce by collecting data for analysis, generating leads, and enhancing customer engagement through personalized discounts or recommendations and order tracking, among others. Therefore, this urge towards automation is fueling the AI chatbot market expansion. For example, H&M applies an AI chatbot that assists clients in product selection, ordering, and shipment tracking activities. The bot also solves commonly arising questions from clients and offers directions on how to proceed with an issue.
An AI chatbot is a virtual computer program powered by artificial intelligence (AI) that is made to mimic conversations with human beings through the internet. Different technologies and methods can be applied in building them among which are: natural language processing (NLP) and machine learning (ML). Different categories of chatbots exist, such as rule-based and self-learning. Rule-based chatbots require pre-defined rules in handling queries; therefore, they use explicit decision trees. On the contrary, self-learning chatbots depend on AI and ML to learn from their interactions with customers and improve their responses over time.
Companies and corporations often utilize them for automating mundane activities while enhancing customer interactions. Furthermore, they might be merged with mobile applications and messaging platforms, providing users with swift and easy entry points for data and services. For example, they integrate into e-commerce sites, supporting users through product recommendations, ordering, and tracking delivery. In addition, they also serve students with swift access to information, answer questions, and support the learning process. In the same way, they can support citizens who want information about government services such as renewing driving licenses or paying taxes.
AI chatbot Market Drivers:
- Increasing demand for automation is anticipated to propel the market growth
Furthermore, it contributes to e-commerce by collecting data for analysis, generating leads, and enhancing customer engagement through personalized discounts or recommendations and order tracking, among others. Therefore, this urge towards automation is fueling the AI chatbot market expansion. For example, H&M applies an AI chatbot that assists clients in product selection, ordering, and shipment tracking activities. The bot also solves commonly arising questions from clients and offers directions on how to proceed with an issue.
AI chatbot Market Geographical Outlook
- Asia Pacific is witnessing exponential growth during the forecast period
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2029
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The AI chatbot market is segmented and analyzed as follows:
- By Component
- Hardware
- Software and Services
- By Deployment
- Cloud
- On-Premises
- By Industry Vertical
- BFSI
- Media & Entertainment
- Education
- Retail
- Healthcare
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East And Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Thailand
- Taiwan
- Others
- North America
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. AI CHATBOT MARKET BY COMPONENT
6. AI CHATBOT MARKET BY DEPLOYMENT
7. AI CHATBOT MARKET BY INDUSTRY VERTICAL
8. AI CHATBOT MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
Some of the key companies profiled in this AI Chatbot Market report include:- IBM
- Nuance Communications, Inc.
- eGain Corporation
- Microsoft Corporation
- Google, Inc. (Alphabet Inc.)
- Creative Virtual Ltd.
- Avaamo Inc.
- Amazon Web Services, Inc.
- Oracle
- LiveChat, Inc.
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 140 |
Published | September 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 15.57 billion |
Forecasted Market Value ( USD | $ 46.64 billion |
Compound Annual Growth Rate | 24.5% |
Regions Covered | Global |
No. of Companies Mentioned | 11 |