How Has the Artificial Intelligence AI In Customer Experience Market Evolved Historically and What is its Current Size?
The artificial intelligence ai in customer experience market has seen considerable growth due to a variety of factors.
• The market size of artificial intelligence (AI) in customer experience has surged rapidly in the last few years. From 2024 to 2025, it is forecasted to grow from $13.9 billion to $17.75 billion, indicating a compound annual growth rate (CAGR) of 27.7%.
The expansion during the previous period could be associated with AI's capacity to decrease operational expenditures, an increase in the utilization of AI-driven chatbots, elevated customer expectations, along with enhancements in customer data security and fraud detection.
What Is The Projected Growth Of The Artificial Intelligence AI In Customer Experience Market Size?
The artificial intelligence ai in customer experience market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for significant expansion in the artificial intelligence (AI) in customer experience market in the coming years. Projected to escalate to $46.9 billion in 2029 with a compound annual growth rate (CAGR) of 27.5%, this growth can be linked to the increasing adoption of AI in mobile applications, a rising preference for AI-enabled self-service options, the growing implementation of real-time decision-making, scalability, and the upsurge in multilingual support.
Key trends predicted to emerge within this forecast period encompass the merging of robotic process automation and AI, AI-fueled predictive analytics, incorporation with CRM systems, sophisticated natural language processing, and progression in deep learning models.
Which Key Drivers Are Propelling The Artificial Intelligence AI In Customer Experience Market's Growth?
The growth of AI in the customer experience market is projected to be propelled by the expansion of digital platforms. The term 'digital channels' corresponds to a variety of online tools and platforms that organisations and businesses utilise to engage with customers, conduct transactions, and deliver content and products. Such digital channels aid in enhancing customer engagement, personalising experiences across diverse platforms, and simplifying communication. AI plays a crucial role in enriching these digital channels by automating personalised interactions, offering real-time assistance, and examining customer data to enhance satisfaction and engagement. For instance, as per the Office for National Statistics, a government agency based in the UK, in Q4 2022, the percentage of total retail sales made up by internet sales was 27.6%, whilst in Q4 2023, this figure jumped to 28.7%. This demonstrates a year-over-year surge in the portion of online sales within the retail industry. Hence, the proliferation of digital channels is pushing the growth of AI in the customer experience market.
What Are The Principal Market Segments In The Global Artificial Intelligence AI In Customer Experience Industry?
The artificial intelligence (AI) in customer experience market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Application: Chatbots And Virtual Assistants, Sentiment Analysis, Customer Behavior Analytics, Personalized Recommendations, Other Applications
5) By Industry Vertical: Retail And E-commerce, Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Healthcare, Travel And Hospitality, Media And Entertainment, Other Industry Verticals
Subsegments:
1) By Solution: AI-Powered Chatbots And Virtual Assistants, Sentiment Analysis Tools, Personalization Engines, Predictive Analytics For Customer Behavior, Customer Journey Mapping Tools, Voice And Speech Recognition Systems, AI-Based Recommendation Engines, AI-Driven Customer Feedback Analysis
2) By Services: AI Integration And Implementation Services, Consulting Services For Customer Experience Strategy, AI Model Training And Customization Services, Data Analytics And Reporting Services, Managed Services For AI-Powered Customer Experience, Post-Implementation Support And Maintenance, Customer Experience Optimization Services
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Which Emerging Market Trends Are Altering The Artificial Intelligence AI In Customer Experience Industry?
Leading businesses functioning in the AI in customer experience market are creating AI-driven assistants to amplify their customer relationship management (CRM) functionalities. These AI-enabled assistants optimize customer experience by offering immediate, precise replies to queries, tailoring interactions based on user data, and proficiently carrying out routine tasks to enhance overall satisfaction and operational productivity. For example, Salesforce, a software firm based in the US, inaugurated Einstein Copilot, an AI-enabled assistant, in September 2023. Einstein Copilot escalates customer experience by utilizing AI to offer personalized experiences and automate various tasks within Salesforce's CRM platform. It aims to enable sales, service, marketing, and commerce teams to work more efficiently by quickening deal finalizations, facilitating case resolution, simplifying campaign creation, and aiding in e-commerce tasks.
Who Are the Key Players In The Artificial Intelligence AI In Customer Experience Market?
Major companies operating in the AI in customer experience market are:
• Google LLC
• Microsoft Corporation
• Amazon Web Service
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce Inc.
• Nvidia Corporation
• Adobe Inc.
• Avaya LLC
• NICE Ltd.
• Nuance Communications Inc.
• Zendesk Inc.
• Genesys Cloud Services Inc.
• Pegasystems Inc.
• Qualtrics LLC
• Verint Systems Inc.
• Sprinklr Inc.
• Aptean Limited
• Freshworks Inc.
• Medallia Inc.
• Hootsuite Inc.
• Servion Global Solutions Ltd.
• Intercom Inc.
• Ada Support Inc.
What Are The Regional Insights Into The Artificial Intelligence AI In Customer Experience Market?
North America was the largest region in the artificial intelligence (AI) in customer experience market in 2024. The regions covered in the artificial intelligence (AI) in customer experience market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
