Artificial Intelligence (AI) in Customer Experience Market Report 2025

This Artificial Intelligence (AI) in Customer Experience market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The artificial intelligence (AI) in customer experience market size has grown exponentially in recent years. It will grow from $13.9 billion in 2024 to $17.75 billion in 2025 at a compound annual growth rate (CAGR) of 27.7%. The growth in the historic period can be attributed to AI reducing operational costs, growth in use of AI-driven chatbots, rise in customer expectations, and improvement in customer data security and fraud detection.

The artificial intelligence (AI) in customer experience market size is expected to see exponential growth in the next few years. It will grow to $46.9 billion in 2029 at a compound annual growth rate (CAGR) of 27.5%. The growth in the forecast period can be attributed to growing use of AI in mobile apps, growing preference for AI-driven self-service options, rising use of real-time decision making, scalability, and increasing multilingual support. Major trends in the forecast period include integration of robotic process automation with AI, AI-driven predictive analytics, integration with CRM systems, advanced natural language processing, and advancements in deep learning models.

The growth of digital channels is expected to drive the expansion of AI in the customer experience market in the coming years. Digital channels encompass various online platforms and tools that allow businesses and organizations to interact with customers, deliver products, share content, and facilitate transactions. These channels improve customer engagement, simplify communication, and offer personalized experiences across multiple platforms. AI enhances the customer experience within digital channels by automating personalized interactions, providing real-time support, and analyzing customer data to boost engagement and satisfaction. For example, in September 2024, the Office for National Statistics, a UK-based government agency, reported that internet sales accounted for 27.6% of total retail sales in Q4 2022, rising to 28.7% in Q4 2023, reflecting a year-over-year increase in the share of online sales in the retail sector. As a result, the expansion of digital channels is driving growth in the AI-powered customer experience market.

Key players in the AI in customer experience market are focusing on developing AI-powered assistants to improve customer relationship management (CRM) capabilities. These AI-powered assistants enhance customer experience by providing immediate, accurate responses to inquiries, personalizing interactions based on user data, and managing routine tasks efficiently, which boosts overall satisfaction and operational efficiency. For instance, Salesforce, a US-based software company, introduced Einstein Copilot in September 2023. This AI-powered assistant leverages AI to personalize interactions and automate various tasks within Salesforce's CRM platform, aiding sales, service, marketing, and commerce teams by accelerating deal closures, streamlining case resolution, simplifying campaign development, and assisting with e-commerce tasks.

In March 2022, Microsoft, a US-based software development firm, acquired Nuance Communications Inc. for $19.7 billion. This acquisition aims to integrate Nuance’s advanced conversational AI and ambient intelligence with Microsoft’s secure, industry-specific cloud solutions, enhancing personalized customer experiences and productivity across multiple sectors. Nuance Communications Inc., a US-based software company, uses AI to enhance customer experience through customized interactions and process automation.

Major companies operating in the artificial intelligence (AI) in customer experience market are Google LLC, Microsoft Corporation, Amazon Web Service, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Nvidia Corporation, Adobe Inc., Avaya LLC, NICE Ltd., Nuance Communications Inc., Zendesk Inc., Genesys Cloud Services Inc., Pegasystems Inc., Qualtrics LLC, Verint Systems Inc., Sprinklr Inc., Aptean Limited, Freshworks Inc., Medallia Inc., Hootsuite Inc., Servion Global Solutions Ltd., Intercom Inc., Ada Support Inc.

North America was the largest region in the artificial intelligence (AI) in customer experience market in 2023. The regions covered in the artificial intelligence (AI) in customer experience market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in customer experience market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in customer experience refers to the use of AI technologies to enhance interactions with customers and improve service quality. This involves applying AI-driven tools and algorithms to personalize customer journeys, provide real-time support, and analyze customer feedback. The goal is to boost customer satisfaction and loyalty while optimizing operational efficiency.

The main components in the AI in customer experience market include solutions and services. AI solutions are comprehensive software systems or platforms that utilize artificial intelligence to enhance various aspects of customer experience. These solutions can be deployed either through cloud-based or on-premises modes and are designed to meet the needs of organizations of all sizes, from large enterprises to small and medium-sized enterprises (SMEs). Key applications in this market include chatbots and virtual assistants, sentiment analysis, customer behavior analytics, personalized recommendations, and more. These applications support a variety of industry sectors, such as retail and e-commerce, banking, financial services and insurance (BFSI), information technology (IT) and telecommunications, healthcare, travel and hospitality, media and entertainment, and others.

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

The AI in customer experience market includes revenues earned by entities by providing services such as personalized customer support, predictive analytics for customer behavior, automated response systems, and automated customer service solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in customer experience market also consists of sales of AI-driven customer relationship management (CRM) software, AI-powered analytics platforms, virtual customer assistants, and intelligent customer feedback tools. 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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