The global artificial conversational entity market was valued at a worth of USD 600 million in 2016 and is expected to grow at a CAGR of 33% during the forecast period, 2019–2026.
Artificial conversational entity (ACE) is a technology capable of leading a conversation with human beings via textual methods. Prevalence of messaging apps in conjunction with conversational and automation technology is the primary determinant behind the growth of the artificial conversational entity market. One of the most famous examples of the artificial conversational entity in mobile technology is Siri, a virtual assistant that enhances the user experience by offering different services and functions on mobile phones through voice-based queries delegated by the user.
In 2017, Wimbledon, the world-famous tennis tournament, introduced an AI-powered chatbot developed by IBM Watson called Fred to guide attendees on the ground and also help them to know the game better through its interactive demonstration of developments happening in the ongoing match.
|Market Size||USD 600 million in 2016|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
North America is expected to hold a dominant position in the global artificial conversational entity market, owing to the massive adoption of artificial conversational entity technology in various applications such as e-commerce, gaming, customer service, and others. Rapidly changing business dynamics coupled with continuous customer service demand and cost efficiency are some of the factors expected to fuel the market growth during the forecast period. Increased adoption of the artificial conversational entity in the transportation and healthcare sector is propelling the market growth in Canada. For instance, in August 2018, WestJet launched an artificial conversational entity to assist customers in booking flights, checking ticket status, and other queries. Mexican banks are on the path of adopting artificial conversational entity to optimize their process, enhance customer experience, and avoid risky transactions, thereby fueling the market growth in the region.
Prodigious adoption of messaging apps is expected to drive the market growth in the U.K. Mobile messaging in the country have been observed as a growing trend in the past few years, which has led to the emergence of social media and applications. Additionally, advancements in voice recognition technology in the field of natural language processing and other features are expected to amplify the artificial conversational entity performance in the healthcare sector.
Adoption of bots in the e-commerce sector is one of the significant factors that is expected to influence the market growth in Asia-Pacific during the forecast period. According to the survey conducted by SAP Hybris in 2017, users are normally open to interact with the artificial conversational entity (ACE ) with some reservation. The survey also revealed that 53% of Singaporean shoppers are satisfied with the artificial conversational entity while shopping.
In primary African countries, mobile devices are predominantly used to interact with the digital world as compared to PCs. Leading businesses around the country benefit from conversational SMS services to exchange money, check the market price, and others. The World Food Programme is embracing artificial conversational entity to gather data for food security analysis and address the needs of people. Adoption of artificial conversational entity service in fintech organizations is projected to influence the market growth in the Middle East.
For instance, in January 2018, Jordan Ahli Bank was the first bank in Jordan to introduce artificial conversational entity service to enhance customer experience and solve their queries.
Global artificial conversational entity (ACE) market is segmented by type, industry, application, and enterprise size.
Small and medium type enterprise is projected to emerge as a fastest-growing segment, owing to the surging demand for the artificial conversational entity to optimize the business operations. Artificial conversational entity helps a business to reduce customer acquisition cost and process numerous queries. It also helps in decoding customer behavior and predicting market trends. BFSI sector is projected to hold the largest share for industry segment in the artificial conversational entity market, owing to the ongoing testing of new applications and solutions with artificial conversational technology to improve overall customer experience. In November 2016, Axis bank launched AI-powered artificial conversational entity partnering with Active.ai. Mobile-based platform is projected to grow at the highest CAGR in application segment. This scenario is mainly driven by the increasing penetration of smartphones worldwide. It assists in tracking real-time customer behavior and trends, thereby boosting business productivity.
Some of the noteworthy companies operating in the market are