Conversational AI Market to Witness 30.2% CAGR Through 2024

The conversational artificial intelligence (AI) market generated $3.2 billion in 2018 and is predicted to reach $15 billion in 2024, advancing at a 30.2 percent compound annual growth rate, Prescient & Strategic Intelligence found in a recent report.

The market is growing due to the rising demand for AI-powered customer support, positive return on investment (ROI) for companies deploying conversational AI, and an increasing number of solution providers, it said.

Conversational AI refers to the application of intelligent virtual assistants (IVA), intelligent interactive voice response (IVR), and chatbots. Other technologies involved include automated speech recognition, natural language processing, machine learning, cognitive computing, computer vision, image processing, and video recognition).

Of these, Prescient expects machine learning to witness the fastest growth. With it, conversational AI can learn from previous responses to queries.

Prescient broke down the conversational AI market into applications for onboarding and employee engagement, branding and advertisement, customer support, customer engagement and retention, and personal assistants. Of those, the personal assistant category is predicted to grow at the fastest CAGR (31 percent).

Key vendors highlighted in the report include IBM, Nuance Communications, Conversica, Haptik, Amazon Web Services, Microsoft, SAP, Oracle, Google, and Baidu.