Chatbot market sees explosive growth, thanks to AI investments

By now, chatbots—or virtual agents—have become familiar to many people who call in to customer support centers or help desks, and they will continue to proliferate as the artificial intelligence-based technology advances.

The global chatbot market was valued at $1.17 billion in 2018 and is expected to reach $10.08 billion by 2026, expanding at a compound annual growth rate (CAGR) of 31 percent, according to research firm Reports and Data.

Capabilities such enhanced customer engagement, easy interfaces, and speed of handling customer queries are among the key factors contributing to the growth of the market.

Chatbots are well suited for the social media platforms and mobile devices that have become so popular among users, particularly younger customers who expect an intuitive and seamless customer experience.

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One of the main advantages of chatbots is they can manage customer queries around the clock without delay. With the evolution of AI technology and deep learning, chatbots are expected to become more sophisticated and offer better language processing capabilities and greater personalization.

As of 2018, the banking sector was dominating the chatbot market, according to the report, with 24 percent of global sales. The North American market is the chief revenue generating source for these products, the study said, followed by Europe and Asia-Pacific.

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