Conversational AI platform is the place wherein individuals are being facilitated to engage in communication with various applications, that include websites as well as gadgets and devices on a daily basis. It involves communication that can happen with the help of voice or in textual form and other ways that helps in the development of personalized experiences with the customer.
The global Conversational AI Platform market is projected to register a significant growth over the forecast period i.e. 2019-2027. Some of the factors that are anticipated to aid the growth of the market are the increase in returns on investments for the industries that are adopting and implementing conversational AI solutions, apart from a large number of industries that are ready to offer various solutions related to Artificial Intelligence (AI) in the global market. Further, the requirements for various services that are connected to AI from among a large number of consumers across various parts of the globe is anticipated to drive the growth of the market over the forecast period.
Growth Highlights based on Region during 2018-2027
The global Conversational AI Platform market is segmented region wise into North America, Europe, Asia Pacific, Latin America and Middle East and Africa. The markets in North America and Europe are anticipated to grow at a remarkable rate over the forecast period. Some of the factors such as huge investments taking place in recent technologies such as Artificial Intelligence and Machine Learning, in addition to large number of vendors that offer solutions associated with conversational AI is anticipated to boost the growth of the market in these regions. CLICK TO DOWNLOAD SAMPLE REPORT
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The global conversational AI platform market is segmented on the basis of deployment into Cloud and On-Premise. On-premise segment is anticipated to register the highest market share, owing to the flexibility that is provided to the user, wherein payment is made only once and subsequently the user owning the hardware. The costs are comparatively cheaper as compared to expenditure incurred on cloud by the user.
The market is segmented on the basis of type into IVA and Chatbots. Chatbots are predicted to occupy the largest market share over the forecast period, on account of factors such as its ability to play a significant role in customer service, as they are mostly used for the purpose of acquiring information. Moreover, there is an interaction with chatbots by customers who can obtain any clarifications related to any product or if they want to book any appointments with the head of the concerned department.
On the basis of technology, the market is segmented into Machine Learning and Deep Learning, Natural Language Processing and Automatic Speech Recognition. Natural Language Processing is anticipated to grow at a remarkable rate over the forecast period, owing to its ability to ensure the processing of large quantities of natural language data. Moreover, the documentation processes can be stream-lined in such a way to increase their efficiency, including accuracy related to documentation.
The application segment is sub-divided into various categories such as personal assistant, customer support, branding and marketing, employee engagement and support and other applications. Customer support is projected to achieve a notable growth rate over the forecast period, owing to its advantages offered that include customer support throughout the day. This helps in reducing the time and effort involved, in the event of individuals offering customer service becoming unavailable at any point of time.
The market is segmented on the basis of verticals into BFSI, Retail and Commerce, Education, Healthcare, Telecom and Other Verticals. The BFSI segment is anticipated to register a notable growth over the forecast period, owing to several factors such as the introduction of AI chatbots into the banking and financial services sector which can assist customers to conduct their transactions securely as well as by engaging in conversations. Many other factors such as providing any signals or warnings in case of any suspicious activity of fraud that is likely to occur by sending alerts to banks and customers directly, including helping employees who are used to performing complex tasks repeatedly that can include managing any internal documentation are anticipated to boost the growth of the market over the next few years.
Market Drivers and Challenges
High Demand for AI Powered Customer Support Services
The number of companies who have been moving towards AI based customer support services, which can provide the customer with some of the best service experiences. AI-driven automation plays a tremendous role, by which the customer service agents would be able to finish tasks that are continuous and repetitive, including being able to perform these tasks independently as well as engage in interaction directly with customers. Further, the customers can be provided with 24/7 assistance and availability of services, and AI-powered support solutions that are providing businesses the ability to offer reliable customer support.
Introduction of Omnichannel platform to offer solutions and reduction of Operational Costs
The businesses have been adopting models that are centered around the client, which raises the requirements for all platforms to unite with the user. Adoption of Omnichannel Platform for the purpose of providing solutions is one way by which businesses would be able to offer better and personalized experiences for its customers, as the interactions with the customers would be seamless, even if various platforms are being used by customers. This is owing to the fact that these are going to remain only on the basis of a single user.
Low levels of Data Protection and Security
The various conversations that take place by applying Artificial Intelligence enabled AI powered chatbots and intelligent virtual assistants are vulnerable to data theft and privacy. The rising number of users who operate on a cloud-based service model are also prone to suffer from security threats, with huge quantities of data being uploaded onto the cloud platforms. Cyber-attacks can occur in many ways at the time of making use of IP and Power over Ethernet (PoE) based network devices by users.
Low Levels of Trust in AI-enabled Software
Another major factor that can restrain the growth of the market is that there are customers who would require the assistance of chatbots and Intelligent Virtual Assistants to clear their problems, but their problems at times could be related to that which cannot be solved by chatbots, due to the fact that Chatbots can only perform specified tasks that would be in accordance with the manner in which they are programmed as well as a lack of complete faith in the suggestions offered by such automated software.
There are a few leading market players operating in the global conversational AI platform market such as Microsoft Corporation, LiveChat, Inc., CM.com, Alphabet, Inc. and Artificial Solutions. Many other players are also working towards offering various solutions associated with Conversational AI, including solutions that are customized to meet the demands of the customers to compete in the global Conversational AI platform market.
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