May 21, 2025

Smart Customer Service May 21, 2025 Grand View Research expects the global conversational artificial intelligence market to reach $41.39 billion in 2030, growing at a compound annual rate of 23.7 percent. Of that amount, chatbots, which Grand View says accounted for the largest share of the market, were valued at $7.76 billion in 2024 and are expected to grow at a CAGR of 23.3 percent through 2030. Chatbots, the research firm said, are "essential tools for organizations aiming to enhance efficiency and reach" and "indispensable for improving operational efficiency and user engagement. "Consumer preferences for instant and personalized interactions are driving the adoption of chatbot solutions," the firm said in a report. "Businesses are increasingly adopting chatbots to enhance customer interactions and streamline operations. These virtual assistants provide 24/7 availability, reducing response times and improving user satisfaction." Grand View's research found a number of key uses for chatbots today. Among them, it found that the mobile applications segment accounted for the highest revenue share in 2024 and is anticipated to continue leading through 2030. Mobile apps integrate chatbots to provide real-time customer support, product recommendations, and more, and their wide reach through smartphones makes them a critical tool for businesses looking to enhance customer engagement, it said. Social media chatbots are also growing as businesses increasingly turn to platforms like Facebook, Instagram, and Twitter for customer interaction. These chatbots help companies manage customer inquiries, marketing campaigns, and even sales through social channels. Among business functions, customer service is the most prevalent use for chatbots, according to Grand View, which found that chatbots improve response times, reduce the workload of human agents, provide 24/7 support, handle high volumes of inquiries, and efficiently resolve basic customer issues. Other growing areas for chatbots are marketing and sales, particularly in lead generation and nurturing, marketing campaigns, delivering personalized recommendations, and increasing conversions, Grand View found. Finance-related chatbots are also growing, according to Grand View, which noted that these chatbots are helping with automating tasks like financial planning, account management, fraud detection, claims processing, delivering personalized investment advice, payment processing, fund transfers, and transaction updates. Additionally, their integration into digital wallets and banking apps is expanding, offering users greater convenience and control over their financial activities. The research also found huge growth in the retail and e-commerce sectors, where it said chatbots are enhancing shopping experiences by providing personalized recommendations and assisting with order tracking. Additionally, these bots streamline customer interactions, from product searches to post-purchase support, driving customer satisfaction and sales, and help retailers manage high traffic during peak shopping seasons and reduce response times. Grand View identified [24]7.ai, Acuvate, Aivo, Artificial Solutions, Botsify, Creative Virtual, eGain, IBM, Inbenta Technologies, and Microsoft's Nuance Communications as the top companies in the chatbot market. But chatbots aren't the only technology that is impacting the conversational AI market. Natural language processing solutions also hold a significant share of the conversational AI market, according to Grand View. "The integration of natural language processing has enabled chatbots to handle complex queries with greater accuracy. This has expanded their use beyond customer support to areas like sales and internal operations," the firm said. Offering a top-notch digital experience is more important for businesses. Customer experience firms now can swiftly and efficiently address complicated questions and inquiries because of the development of conversational AI. Grand View identified Google, Microsoft, Amazon Web Services, IBM, Oracle, FIS, SAP, Artificial Solutions, Kore.ai, Avaamo, Conversica, Jio Haptik Technologies, Rasa Technologies, Solvvy, Pypestream, Kasisto, and Cognigy as leaders in the overall conversational AI market. Connect with SCS