Future Market Insights expects the global conversational artificial intelligence market to reach $40.5 billion by 2032, up from $8.3 billion in 2022, expanding at a compound annual growth rate of 17.2 percent, fueled in large part by the rise in demand for AI-based chatbots and reduced chat bot development costs.
Of that amount, the U.S. market will account for the highest value share, at $14 billion, in 2032.
With advancements in the AI technology, organizations are making use of conversational AI solutions for customer service, the firm noted.
The growing use of AI and natural language processing technologies enabled companies to build intelligent agents, add services, and perform tasks integrated with other platforms., according to Future Market Insights, which expects the integration of new capabilities, such as gesture recognition, to further propel market growth.