The Conversational AI platform market is projected to grow at a 21.8% CAGR to reach US$18.4 billion by 2026. While the benefits brought in by Conversational AI and automation are compelling and will enable businesses to focus on enhancing customer satisfaction, the technology is still maturing. Providers must go beyond product-based differentiation and consider other factors that can set them apart, such as the quality of their customer support, the ease of integration with other systems, the ability to customize and personalize solutions, and the overall user experience.

• Voice technology will gain investment and drive acquisitions – The conversational AI platform market is likely to see increased investments in R&D in developing and furthering voice support in conversations. The market would also witness many vendors striking strategic partnerships and/or acquisitions to augment voice tech capabilities.
• Market segment expansion – This market will go through rapid expansion on all fronts such as product, target markets, and customer segments. Product footprint would expand to address multiple use cases with prebuilt ontologies and conversational flows, as well as application ecosystem expansion via APIs/connectors. Product expansion would be done with a view to address industry verticals, functions/domains, and the use cases thereof.
• Increasing formal training/customer success support to augment the use of low-code/no-code interfaces to help business users flexibly change/update conversations.

The future of conversational AI is promising, and we can expect to see continued investment, innovation, and expansion. Whether it’s driving higher conversion rates through personalized chat experiences, automating routine sales tasks, or providing real-time support, Conversational AI is being leveraged across a diverse set of use cases, spanning industries such as healthcare, education, finance, retail, and more.

Gartner Press Release, “Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023”, 31 October 2022.

Gartner, Competitive Landscape: Conversational AI Platform Providers, Anup Roy, 31 October 2022.