Exploring the world of Conversational AI: Chatbots, virtual agents, and more

In 2020, the conversational AI market had a global size of $5.78 billion, and it is estimated to expand to $32.62 billion by 2030, with a compound annual growth rate (CAGR) of 20% between 2021 and 2030. The term conversational artificial intelligence (CAI) pertains to technologies, such as chatbots or virtual agents, that enable users to engage in conversation.

In 2022, AI emerged as a prominent innovation in contact centers, increasing features, attention, and adoption. Its utilization expands across various areas, including agent recruitment and training, resource projection, quality management, process automation, workforce optimization, and customer self-help.

The term “AI” encompasses a wide range of technologies, including natural language understanding (NLU), natural language processing (NLP), automatic speech recognition (ASR), text-to-speech (TTS), and speech-to-text (STT) processing. When people refer to the integration of AI in the customer contact landscape, they often mean the usage of these diverse subsets of technologies.

Growth opportunities in conversational AI

CAI utilizes some of the technologies mentioned above but aims to enable a dialogue between a person and its digital equivalent. Also known as a bot, chatbot, agent assist, virtual agent (VA), or intelligent virtual assistant (IVA), CAI offers customers self-service options and assists employees in front and back offices, establishing a hybrid digital and human workforce.

A report by Research and Markets examines the current status of CAI in contact centers, showcasing the latest advancements in the industry and identifying potential growth prospects for solution providers who leverage CAI technologies. It also presents examples of how CAI is being implemented and offers an overview of the competitive landscape for CAI.

Due to the development of AI technology, conversational AI solutions are becoming increasingly popular among businesses for providing excellent customer support. The growing demand for AI-based customer support services is expected to drive the expansion of the Conversational AI market. Customers seeking assistance through call centers, the internet, emails, and applications are collectively referred to as using customer service.

AI-powered chatbots can mimic human-like interactions and offer real-time assistance using Natural Language Processing (NLP) technology. They can also help companies gather information on customer preferences, opinions, and buying habits to provide personalized experiences and proactive recommendations based on account activity. Additionally, AI-powered chatbots and virtual agents can automate repetitive and manual tasks, including order placement, balance inquiries, general inquiries, technical support, and other customer services.

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