Generative AI in Customer Services Global Market Report 2024

The generative AI in customer services market size has grown exponentially in recent years. It will grow from $0.4 billion in 2023 to $0.51 billion in 2024 at a compound annual growth rate (CAGR) of 27.5%. The growth observed in the historic period can be credited to the emergence of chatbots, advancements in natural language processing technology, an increase in the volume of customer data, and a heightened focus on enhancing customer experience.

The generative AI in customer services market size is expected to see exponential growth in the next few years. It will grow to $1.38 billion in 2028 at a compound annual growth rate (CAGR) of 28%. The anticipated growth during the forecast period can be linked to the integration of IoT devices, expansion of multilingual capabilities, emphasis on ethical AI, the integration of augmented reality (AR), and a focus on emotional intelligence. Key trends expected in the upcoming period include the proliferation of AI-powered recommendations, the rise of AI-powered virtual assistants, an increased focus on emotional engagement, integration with social media platforms, and the adoption of AI-powered sentiment analysis tools.

The growing integration of AI in customer services within the travel and hospitality industry is anticipated to boost the development of generative AI in the customer services sector. This industry, which includes travel, tourism, accommodations, dining, entertainment, and recreation services, benefits significantly from AI applications that offer personalized, efficient, and scalable solutions to enhance the customer experience, thereby promoting growth for travel-related businesses. For example, data from the US Department of Commerce 2021 Highlights revealed that international travel and tourism arrivals in the United States increased to 22.1 million in 2021, up from 19.2 million in 2020. Thus, the increasing use of AI in customer services within the travel and hospitality sector is a key driver for the expansion of the generative AI in the customer services market.

Leading enterprises in the generative AI customer services market are focusing on pioneering automation technologies to transform customer interactions and streamline service operations. These innovations promote enhanced responsiveness, personalization, and operational efficiency by automatically generating tailored responses, utilizing predictive analytics, and facilitating intelligent decision-making processes. For example, in April 2023, Ada, a customer service automation company based in the US, introduced a generative AI-driven customer service suite designed to improve customer experiences by providing personalized and intuitive interactions through various channels, including messaging and voice.

In June 2023, Ramp, a finance automation platform provider in the US, acquired Cohere.io, an AI-powered customer support platform company, for an undisclosed sum. This acquisition aims to bolster Ramp's automation capabilities, particularly by leveraging large language models to automate a substantial volume of customer support ticket responses, enhancing overall service efficiency.

Major companies operating in the generative ai in customer services market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, salesforce.com inc., Twilio Inc., Nuance Communications Inc., Zendesk Inc., Verint Systems Inc., LivePerson Inc., Intercom Inc., Adastra Corporation, Boost.ai AS, Haptik Inc., Helpshift Inc., Rasa Technologies Inc., Cognigy Inc., DigitalGenius Corporation, SmartAction LLC, Solvvy Inc., ObserveAI Inc., Pypestream Inc., Inbenta Technologies Inc.

North America was the largest region in the generative AI in customer services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative ai in customer services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the generative ai in customer services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative AI in customer services involves artificial intelligence technologies designed to autonomously produce responses that closely mimic human interaction in addressing customer inquiries or problems. These systems leverage natural language processing and machine learning to comprehend inquiries and generate responses that are both relevant and contextually appropriate, thereby improving the efficiency and scalability of customer service functions.

The primary forms of generative AI utilized in customer services include cloud-based, on-premise, and hybrid models. Cloud-based generative AI operates on servers hosted remotely, using AI algorithms to autonomously generate responses, recommendations, or solutions to customer inquiries, thereby streamlining support operations and enhancing customer satisfaction. This technology is applied across various functionalities such as chatbots, virtual assistants, personalized recommendations, and sentiment analysis. It serves multiple sectors, including banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, travel and hospitality, healthcare, among others.

The generative AI in customer services research report is one of a series of new reports that provides generative AI in customer services market statistics, including the generative AI in customer services industry's global market size, regional shares, competitors with a generative AI in customer services market share, detailed generative AI in customer services market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in customer services industry. This generative AI in customer services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative AI in customer services market consists of revenues earned by entities by providing services such as automated responses, personalized recommendations, language translation, sentiment analysis, content generation, and fraud detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in customer services market also includes sales of personalization platforms, predictive analytics tools, sales enablement software, sentiment analysis tools, and dynamic pricing solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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