Call Center AI Market: Information by Component (Compute Platform, Solutions, Services), Deployment Type (Cloud, On-Premise), Application (BFSI, Healthcare), and Region — Forecast till 2029

Mar 16, 2020   Global Statistics Representing Call Center AI Market Scenario The call center industry is one of the very crucial sectors as well as significant economic contributors to emerging economies such as China, India, among others. The work environment required in call centers is emotionally, physically, and mentally challenging. It requires dealing with hectic schedules, low budgets, handling furious customers, adjusting to shift timings, and many more. In the middle of this, a call center agent is e...
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Global Statistics Representing Call Center AI Market Scenario

The call center industry is one of the very crucial sectors as well as significant economic contributors to emerging economies such as China, India, among others. The work environment required in call centers is emotionally, physically, and mentally challenging. It requires dealing with hectic schedules, low budgets, handling furious customers, adjusting to 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 phrase of the call till 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 long-term association with the company. A satisfied customer provides positive feedback, which is decisive for the growth of the agent as well as the organization. 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 of the call centers still rely on old technologies such as IVRs, where a call is received by the first agent that is available, and the Roll Over to the Next Agent (RONA) option in case of the employee’s absence.

Artificial Intelligence Simplifies Multitasking

Implementation of AI-based software or bots in the call centers enhances issue handling experience and engages an agent’s attention and enthusiasm to work in the otherwise hectic environment. It helps the service provider to mitigate the workload by allocating some of the basic work. Also, AI systems prefill the data in the ticketing tool while documenting a ticket based on the previous memory. The role of AI is, therefore, highly demanding in the call center domain.

Call centers are busy all the time; an agent needs to address customer queries and provide solutions on the go. At times, they are bound to do multitasking. While handling a customer query and looking for the solution, the agent also has to document the issue. Technological advancements are adding up to the customer’s expectations. It offers luxuries like omnichannel communication, 24X7 service availability, and task completion in a single swipe. Therefore, upgrading the technological infrastructure in the call centers is the pressing need of the hour.

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 AI and new technological adaptations. More than 80% of the organizations have already integrated chatbots for addressing client concerns, which is expected to increase significantly by 2020. On average, a customer care agent addresses the same question at least 20-25 times a day. This provides an opportunity for a bot or an AI 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 AI market, as RPA efficiently reduces errors and improves work quality.

Interactive Voice Response — An Automated Telephone System

Due to the increasing number of queries and rising demand for a quick resolution on calls, the Interactive Voice Response (IVR) segment accounted for a considerable revenue share in 2018. Innovative applications of IVR, such as call center forwarding, office calls routing, marketing for customers, feedback surveys, and payment processing, has enabled customers to solve the product issues by themselves. Such scenarios are anticipated to boost the market growth.

Extensive Use of Services and Consulting Solution in the IT and Healthcare Sector

The growing demand for the implementation of new call centers and the incorporation of new systems alongside existing systems at the workplace is predicted to drive the market growth. This is mandatory to meet privacy needs, regulatory compliance, and specific business continuity requirements. The buyers require vendor support for troubleshooting and resolving technical issues, which is expected to positively influence the support and maintenance services segment’s growth. The IT and healthcare sectors offer tremendous opportunities for the services and consulting segment due to growing infrastructure.

Cloud-Based Deployment Eliminates Technical Impediments

The shift of businesses from the traditional methodologies to automatically resolving queries and issues through IVRs and self-service portals has resulted in drastic changes in the automation process technology. The on-premise solution has been the most preferred choice of many companies over the last few decades due to its easy deployment and less capital investment. However, rising technical difficulties and sophisticated operational needs necessitate cloud-based implementation to manage the technical requirements of respective call centers. Furthermore, the availability of affordable internet connections, along with the emergence of 5G, is expected to bolster the demand for the cloud deployment segment.

AI’s Epoch-Making Role in Small and Large Industry Verticals

The Small and Medium Enterprise (SME) have to drudge over monotonous tasks, urging them to consider the implementation of AI-backed customer care solutions. Increasing acknowledgment about the innovative features of AI 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 offices as well as overseas. 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 IT and telecom, banking, government, consumer goods and retail, travel and hospitality, and healthcare sectors is projected to accelerate the market growth. Call center AI software in these sectors enhances efficiency and productivity, thereby improving customer satisfaction and brand positioning.

North America — the Market Dominator

North America is presently dominating the call center AI market due to the presence of prominent vendors. Rapid technological developments and an increase in the adoption rate of AI-based solutions in the region are driving the market growth. MetLife, one of the largest insurance companies in the United States, adopted an AI system to improve responses. The system helps staff to track and monitor the customer’s emotions during conversations, thereby enhancing the quality of 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’s Penchant for Advanced Technology

Asia-Pacific’s rapid adoption of technological updates, such as those being hosted by AI, 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 in the regional call center AI market. IBM’s Watson Assistant helps to answer customer questions quickly and also encourages employees to perform jobs efficiently. Chat or call logs are loaded into Watson's Assistant based on the 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 comply with the rules.

Recent Developments

  • PNB Metlife, one of the private insurance companies in India, recently launched an AI-based customer service app, Khushi, in April 2019. It is a virtual agent system that provides a personalized experience for customers and differentiates the business from competitors.
  • Google launched a beta version of its call center AI that uses tools like Google’s text-to-speech capabilities in April 2019. It also launched an end-to-end AI Platform for developers and data scientists, for building, testing and deploying models.
  • MINDsLab launched AI voice generating service in March 2019, to automatically handle its compliance-related calls

Competitive Landscape: Key Players

With the new emerging business in the market, there is intense competition among businesses to provide the best services to its clients. AI can play a big role in enhancing the productivity of SMEs by handling routine and mundane interactions. Companies can utilize AI to prevent response delays. It serves as the best example to optimize time across channels. Furthermore, public-private partnerships, as well as government funding, has helped companies to configure and launch new products and services rapidly. Some of the notable players in the market are IBM (us), Microsoft (U.S.), Oracle (U.S.), AWS (U.S.), Avaya (U.S.), Google (U.S.), Haptik (India), Zendesk (U.S.), Conversica (U.S.),Nuance Communications (U.S.), Inbenta Technologies (U.S.), Kore.ai (U.S.), EdgeVerve Systems (India), SAP (Germany), Avaamo (U.S.), Talkdesk (U.S.), Pypestream (U.S.),  NICE inContact (U.S.), Creative Virtual (U.K), and Artificial Solutions (Spain).

Strategic Approach

  • Emphasis on customer feedback to modify the solutions and improve customer satisfaction
  • Investments in R&D to offer innovative products and enhance customer experience
  • Avaya Holdings Corporation acquired Spoken Communications, a call-center-as-a-Service (CCaaS) solutions provider, in Jan 2018. This acquisition helped customers of Avaya Holdings to shift from on-premise services to cloud-based solutions.
  • Acquisitions, mergers and collaborations, new launches, and product enhancement strategies are being incorporated by companies to meet the growing demand for call center AI solutions across the globe and to strengthen the position in the market.

Call Center AI Market Segmentation

By Component

  • Compute Platform
  • Solutions
  • Services

By Deployment Type

  • Cloud
  • On-premises

By Application

  • BFSI
  • Retail & E-commerce
  • Telecom
  • Healthcare
  • Media & entertainment

By Region

North America

    • U.S.
    • Canada
    • Mexico

Europe

    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe

Asia-Pacific

    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia-Pacific

LAMEA

    • Brazil
    • Saudi Arabia
    • South Africa
    • Rest of LAMEA

Frequently Asked Questions (FAQs)

North America is expected to hold the highest market share in Call Center AI Market.
IBM, Microsoft, Oracle, AWS, Avaya, Google, Haptik, Zendesk, Conversica,Nuance Communications, Inbenta Technologies, Kore.ai, SAP, Avaamo are the top players in Call Center AI Market.
Cloud Deployment Type Segment is expected to be the leading segment in Call Center AI Market during the forecast period.
Growing demand for the implementation of new call centers and the incorporation of new systems, an increasing the number of queries and rising demand for a quick resolution on calls are the key factors expected to drive Call Center AI Market during the forecast period.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.

Global Statistics Representing Call Center AI Market Scenario

The call center industry is one of the very crucial sectors as well as significant economic contributors to emerging economies such as China, India, among others. The work environment required in call centers is emotionally, physically, and mentally challenging. It requires dealing with hectic schedules, low budgets, handling furious customers, adjusting to 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 phrase of the call till 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 long-term association with the company. A satisfied customer provides positive feedback, which is decisive for the growth of the agent as well as the organization. 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 of the call centers still rely on old technologies such as IVRs, where a call is received by the first agent that is available, and the Roll Over to the Next Agent (RONA) option in case of the employee’s absence.

Artificial Intelligence Simplifies Multitasking

Implementation of AI-based software or bots in the call centers enhances issue handling experience and engages an agent’s attention and enthusiasm to work in the otherwise hectic environment. It helps the service provider to mitigate the workload by allocating some of the basic work. Also, AI systems prefill the data in the ticketing tool while documenting a ticket based on the previous memory. The role of AI is, therefore, highly demanding in the call center domain.

Call centers are busy all the time; an agent needs to address customer queries and provide solutions on the go. At times, they are bound to do multitasking. While handling a customer query and looking for the solution, the agent also has to document the issue. Technological advancements are adding up to the customer’s expectations. It offers luxuries like omnichannel communication, 24X7 service availability, and task completion in a single swipe. Therefore, upgrading the technological infrastructure in the call centers is the pressing need of the hour.

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 AI and new technological adaptations. More than 80% of the organizations have already integrated chatbots for addressing client concerns, which is expected to increase significantly by 2020. On average, a customer care agent addresses the same question at least 20-25 times a day. This provides an opportunity for a bot or an AI 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 AI market, as RPA efficiently reduces errors and improves work quality.

Interactive Voice Response — An Automated Telephone System

Due to the increasing number of queries and rising demand for a quick resolution on calls, the Interactive Voice Response (IVR) segment accounted for a considerable revenue share in 2018. Innovative applications of IVR, such as call center forwarding, office calls routing, marketing for customers, feedback surveys, and payment processing, has enabled customers to solve the product issues by themselves. Such scenarios are anticipated to boost the market growth.

Extensive Use of Services and Consulting Solution in the IT and Healthcare Sector

The growing demand for the implementation of new call centers and the incorporation of new systems alongside existing systems at the workplace is predicted to drive the market growth. This is mandatory to meet privacy needs, regulatory compliance, and specific business continuity requirements. The buyers require vendor support for troubleshooting and resolving technical issues, which is expected to positively influence the support and maintenance services segment’s growth. The IT and healthcare sectors offer tremendous opportunities for the services and consulting segment due to growing infrastructure.

Cloud-Based Deployment Eliminates Technical Impediments

The shift of businesses from the traditional methodologies to automatically resolving queries and issues through IVRs and self-service portals has resulted in drastic changes in the automation process technology. The on-premise solution has been the most preferred choice of many companies over the last few decades due to its easy deployment and less capital investment. However, rising technical difficulties and sophisticated operational needs necessitate cloud-based implementation to manage the technical requirements of respective call centers. Furthermore, the availability of affordable internet connections, along with the emergence of 5G, is expected to bolster the demand for the cloud deployment segment.

AI’s Epoch-Making Role in Small and Large Industry Verticals

The Small and Medium Enterprise (SME) have to drudge over monotonous tasks, urging them to consider the implementation of AI-backed customer care solutions. Increasing acknowledgment about the innovative features of AI 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 offices as well as overseas. 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 IT and telecom, banking, government, consumer goods and retail, travel and hospitality, and healthcare sectors is projected to accelerate the market growth. Call center AI software in these sectors enhances efficiency and productivity, thereby improving customer satisfaction and brand positioning.

North America — the Market Dominator

North America is presently dominating the call center AI market due to the presence of prominent vendors. Rapid technological developments and an increase in the adoption rate of AI-based solutions in the region are driving the market growth. MetLife, one of the largest insurance companies in the United States, adopted an AI system to improve responses. The system helps staff to track and monitor the customer’s emotions during conversations, thereby enhancing the quality of 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’s Penchant for Advanced Technology

Asia-Pacific’s rapid adoption of technological updates, such as those being hosted by AI, 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 in the regional call center AI market. IBM’s Watson Assistant helps to answer customer questions quickly and also encourages employees to perform jobs efficiently. Chat or call logs are loaded into Watson's Assistant based on the 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 comply with the rules.

Recent Developments

  • PNB Metlife, one of the private insurance companies in India, recently launched an AI-based customer service app, Khushi, in April 2019. It is a virtual agent system that provides a personalized experience for customers and differentiates the business from competitors.
  • Google launched a beta version of its call center AI that uses tools like Google’s text-to-speech capabilities in April 2019. It also launched an end-to-end AI Platform for developers and data scientists, for building, testing and deploying models.
  • MINDsLab launched AI voice generating service in March 2019, to automatically handle its compliance-related calls

Competitive Landscape: Key Players

With the new emerging business in the market, there is intense competition among businesses to provide the best services to its clients. AI can play a big role in enhancing the productivity of SMEs by handling routine and mundane interactions. Companies can utilize AI to prevent response delays. It serves as the best example to optimize time across channels. Furthermore, public-private partnerships, as well as government funding, has helped companies to configure and launch new products and services rapidly. Some of the notable players in the market are IBM (us), Microsoft (U.S.), Oracle (U.S.), AWS (U.S.), Avaya (U.S.), Google (U.S.), Haptik (India), Zendesk (U.S.), Conversica (U.S.),Nuance Communications (U.S.), Inbenta Technologies (U.S.), Kore.ai (U.S.), EdgeVerve Systems (India), SAP (Germany), Avaamo (U.S.), Talkdesk (U.S.), Pypestream (U.S.),  NICE inContact (U.S.), Creative Virtual (U.K), and Artificial Solutions (Spain).

Strategic Approach

  • Emphasis on customer feedback to modify the solutions and improve customer satisfaction
  • Investments in R&D to offer innovative products and enhance customer experience
  • Avaya Holdings Corporation acquired Spoken Communications, a call-center-as-a-Service (CCaaS) solutions provider, in Jan 2018. This acquisition helped customers of Avaya Holdings to shift from on-premise services to cloud-based solutions.
  • Acquisitions, mergers and collaborations, new launches, and product enhancement strategies are being incorporated by companies to meet the growing demand for call center AI solutions across the globe and to strengthen the position in the market.

Call Center AI Market Segmentation

By Component

  • Compute Platform
  • Solutions
  • Services

By Deployment Type

  • Cloud
  • On-premises

By Application

  • BFSI
  • Retail & E-commerce
  • Telecom
  • Healthcare
  • Media & entertainment

By Region

North America

    • U.S.
    • Canada
    • Mexico

Europe

    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe

Asia-Pacific

    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia-Pacific

LAMEA

    • Brazil
    • Saudi Arabia
    • South Africa
    • Rest of LAMEA

Frequently Asked Questions (FAQs)

North America is expected to hold the highest market share in Call Center AI Market.
IBM, Microsoft, Oracle, AWS, Avaya, Google, Haptik, Zendesk, Conversica,Nuance Communications, Inbenta Technologies, Kore.ai, SAP, Avaamo are the top players in Call Center AI Market.
Cloud Deployment Type Segment is expected to be the leading segment in Call Center AI Market during the forecast period.
Growing demand for the implementation of new call centers and the incorporation of new systems, an increasing the number of queries and rising demand for a quick resolution on calls are the key factors expected to drive Call Center AI Market during the forecast period.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.