Call Center AI Market

Market Overview

The global call center AI market was valued at USD 1.5 billion in 2022 and is projected to reach a value of USD 8.4 billion by 2031, registering a CAGR of 21% during the forecast period of 2023–2031. The call center industry is one of the most crucial sectors as well as a significant economic contributor to emerging economies such as China and India, among others. The work environment required in call centers is emotionally, physically, and mentally challenging. It is predicted that the growing use of cloud-based contact centers will boost demand for call center artificial intelligence (A.I.) and accelerate market growth.

 It requires dealing with hectic schedules, low budgets, handling furious customers, adjusting shift timings, and many more. In the middle of this, a call center agent is expected to meet the fundamental requirement of ensuring excellent customer satisfaction. Right from the opening phase of the call until the call ends, the agent is expected to carefully listen to the customer's problem, analyze it, and provide an effective solution. This establishes trust and a long-term association with the company. A satisfied customer provides positive feedback, which is decisive for the agent's and organization's growth. A happy survey typically generates more revenue for the call centers. However, high attrition rates and sluggish career growth diminish the possibility of a call center agent's long-term association with the company. Furthermore, some call centers still rely on old technologies such as IVRs, where a call is received by the first available agent, and the Roll Over to the Next Agent (RONA) option in case of the employee's absence.

Market Dynamics

Global Call Center AI Market Drivers

Increasing trend for call-center solutions on the cloud

Through cloud-based technologies, agents can access customer information in real-time from any place. Furthermore, agents can operate remotely thanks to cloud-based call center A.I. solutions, eliminating the need for full-time employees to come into the office. The end-user infrastructure processing is divided between two locations in a functional architecture created by call center artificial intelligence (A.I.) suppliers.

A.I.'s Epoch-Making Role in Small and Large Industry Verticals

Small and Medium Enterprises (SMEs) have to drudge over monotonous tasks, urging them to consider implementing AI-backed customer care solutions. Increasing acknowledgment of the innovative features of A.I. technology and how it boosts productivity is expected to spur market growth. Large call centers possess a massive amount of customer data that needs effective management in local and overseas offices. Therefore, the implementation of call center software enables employees from various fields to communicate and share accurate information. It also allows authorities to access share points hosted on the vendor's servers through a web browser.

Increasing demand in the I.T. and telecom, banking, government, consumer goods, retail, travel and hospitality, and healthcare sectors is projected to accelerate the market growth. Call center A.I. software in these sectors enhances efficiency and productivity, improving customer satisfaction and brand positioning.

Global Call Center AI Market Restraints

issues relating to privacy

data security and privacy issues, the preference for an online chat over chatbots, and other essential reasons are anticipated to hinder the growth of the core artificial intelligence (A.I.) industry. During the projection period of 2023–2030, a lack of unsupervised learning and skilled labor is expected to challenge the artificial intelligence (A.I.) market.

Global Call Center AI Market Opportunity

Robotic Process Automation

Burgeoning social media apps spurred the demand for chatbots by users with a penchant for technology. They are migrating from traditional phone calls to messaging. This mounts up the number of technical and application issues demanding prompt customer service. A call center is always burdened with the workload, which drives the demand for A.I. and new technological adaptations. More than 80% of organizations have already integrated chatbots for addressing client concerns, which is expected to increase significantly by 2020. A customer care agent addresses the same question at least 20-25 times daily. This provides an opportunity for a bot or an A.I. to pre-program it to predict repetitive queries based on previous analysis. Robotic Process Automation (RPA) is foreseen to bring forth a gamut of opportunities for the call center A.I. market, as RPA efficiently reduces errors and improves work quality.

Regional Analysis

Depending on the region, the call center AI market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

North America

North America is presently dominating the call center A.I. market due to the presence of prominent vendors. Rapid technological developments and an increase in the region's adoption rate of AI-based solutions are driving market growth. MetLife, one of the largest insurance companies in the United States, adopted an A.I. system to improve responses. The system helps staff track and monitor the customer's emotions during conversations, enhancing customer service interactions. A global survey conducted by MIT states that almost 90% of the companies in North America have welcomed AI into their systems to enhance customer experience, underpinning North America's dominance in the market during the forecast period.

Asia-Pacific

Asia-Pacific's rapid adoption of technological updates, such as those being hosted by A.I., by more than 50% of the population, is foreseen to bring about a drastic change in the region. Prominent players, such as IBM, Microsoft, Google, and AWS, account for a significant share of the regional call center A.I. market. IBM's Watson Assistant helps answer customer questions quickly and encourages employees to perform jobs efficiently. Chat or call logs are loaded into Watson's Assistant based on historical data and are used to handle real user questions and queries. Watson has a Search Skill facility used to search the company's website or third-party tools. SMEs and large enterprises in APAC are increasingly becoming more aware of government regulations and complying with the rules.

Europe

The European Call-center AI market is dominated by Germany, followed by the U.K. In July 2019, the UK-based insurance provider British United Provident Association Limited (Bupa) installed A.I. in its call center. The business has introduced an automated caller I.D. service that uses speech recognition and machine learning to identify callers, respond to customer inquiries, and learn from prior interactions. Since the program's launch, 85% of callers have chosen to connect with agents via the automated alternative.

LAMEA

It is Brazil that dominates the market based on the countries in the region. The market in the region is expected to rise significantly due to rising client engagement on social media platforms, increased data collection via social media, the Internet of Things (IoT), and improvements in image technology.

Segmental Analysis

The call center AI market is segmented by component, deployment type, application, and region.

Based on the component, it is further divided into compute platforms, solutions, and services, where solutions dominate the market.

Solution

Due to the growing usage of chatbots, speech analysis software, and IVAs in numerous processes, the solutions segment had the most significant share. Transcripts of the contact center encounter are created using voice analysis software. Speech analytics examines transcripts, which record keywords and track agent performance, to discern recurring topics in the call. Financial organizations can communicate with customers and enhance their experiences with call center AI technologies, which should speed up response times and boost overall effectiveness.

Based on deployment type, it is bifurcated into cloud and on-premises.

On-premises

The on-premises segment dominated the market. Enterprises and companies can adapt and use A.I. models by deploying A.I. solutions and services on-premises. The on-premises implementation also allows businesses to use adequate safety and security procedures for customer data, enhancing system security and providing a more secure ecosystem for handling customer data. 

Cloud

The cloud segment is anticipated to account for the most significant market share during the projection period. The cloud segment is expanding as interactive voice response (IVR) systems for quickly answering questions over phone calls gain popularity. Customers don't have to call customer service to handle product-related problems; they can use the software.

The application is divided into two categories: BFSI and Healthcare.

BFSI

The BFSI industry segment has the largest revenue share. Implementing AI technologies improves the effectiveness and quality of call center interactions, allowing banks to provide better customer support. Banking institutions are encouraging the use of AI voice assistants and AI chatbots because mobile banking applications may connect users with call center employees based on their needs. As a result, call center agents have a lighter workload and can better concentrate on more critical consumer inquiries.

Recent Developments

In November 2022, IBM unveiled the Next-Generation IBM Quantum System Two and the 400 Qubit-Plus Quantum Processor.

In November 2022, Oracle declared its backing for the SC22 Student Cluster Competition.

In October 2022, Oracle Interconnect for Microsoft Azure opened a new region in South Africa.