A recent report shows that chatbots are growing around the world and will expand by over 37% in the next five years. We will describe what the current chatbots can do and then suggest how they are growing in the current market scenario. We start by giving the definition of a chatbot.
What is a Chatbot?
A chatbot is often termed as an interactive agent. Technically, it may be termed as an artificial conversational entity. Essentially, it is a computer program which can manage a conversation with a human. It may either use auditory communication or an exchange of text messages.
The Chatbot Market
Current market size shows that chatbots are primarily employed in the BFSI (Banking, Financial Services and Insurance) industry. The government sector is also employing chatbots. Other important industries are the hospitality and the e-commerce industry which are employing AI in automatic communication with clients.
Currently, North America is the leading region in terms of the largest market. The US market currently sits around the 50 million dollars mark, which shows that there is still a lot of room for improvements and further market segment expansions. E-commerce is already becoming a leading market segment in this regard and will continue to increase its shares in the near future.
Large enterprises are already leading the chatbot market, only because they can afford to implement technological solutions and tools that can provide marginal gains in terms of improved customer support and better functionality. The global chatbot market is currently estimated at around 190 million dollars mark.
Market Growth in the Future
One research report shows that the global chatbot market will grow to reach around 1 billion US dollars by 2024. This will happen, when large enterprise businesses will start to use them on an extensive basis, it will defeat small scale businesses. The technological advantage during this period will be based on the advancements in the field of artificial intelligence.
The global chatbot trends describe that it may be evident that a larger number of enterprise businesses will attempt this technological model. It carries significance because their use essentially simplifies several tasks, such as problem solving and attending to the basic customer queries.
The market will continue to grow, due to further advancements in the AI technology. With the experiments consistently occurring in this industry, it is all but certain that the new generation of chatbots will be more efficient and capable of automating complex tasks not possible right now.
The future of chatbots is great with the forecast of 37% growth in a continuous manner. The chatbots represent an innovation which can take many businesses forward and provide them with an opportunity to become a winning combination of functionality and strong support.
Manual support is cumbersome and often requires a plethora of human resources. The future innovations mean that other industries will also start to employ chatbot support systems. The entertainment and the BFSI sectors will increase their use of these chatbot support systems.
The future right now is all about improving human interactions with large organisations and businesses. The emphasis remains on offering improved solutions that allow for social engagement and finding the initial grounds for resolving disputes.
Effect on End Users
The end users of chatbots consist of large and medium enterprises. Large companies are developing chatbots that follow a specific and limited set of rules. These are the rules that allow the current generation of chatbots to offer improved service in a controlled and predictable manner.
Medium organisations are following suit by using chatbots for simple functions within customer interaction. Small businesses are currently looking at different avenues in which they can profit from chatbots as the end users. They are the ones that require innovation and would prefer to employ chatbots in a variety of roles.
Around 45% of current chatbot end users are employing them for customer service interactions. The large enterprise segment currently overwhelms other segments, but it is natural to observe that other market segments are improving all the time.
North America is currently the leading hub for the chatbot industry, as it holds the largest market share in the current time. Asia Pacific, on the other hand, is quickly following suit. Large enterprises around the world are quick to use the current chatbots and use them to perform the traditional customer service activities.
Chatbots are going to grow in the coming years and we will find them in a variety of environments. It is essential that we further study their impact and learn to integrate them in our business ventures for innovation and improved functionality.
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