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The ultimate list of conversational AI
statistics for 2025
March 28, 2025
The state of the conversational AI market
Driven by ever-expanding investments, conversational AI technology is gaining traction both in terms of implementation and public acceptance.
| The global conversational AI market size is expected to grow from $12.24 billion in 2024 to $61.69 billion by 2032 | Fortune Business Insights |
|---|---|
| The conversational AI platform software market was valued at $234.82 million in 2024 and is projected to reach $589.76 million by 2031. Major market players include Microsoft (Azure Bot Service), Google (Dialogflow), IBM (Watson Assistant), Amazon Web Services (AWS), Oracle (Digital Assistant), and SAP (Conversational AI) | Verified Market Research |
| The chatbot market was valued at $7.01 billion in 2024 and is expected to reach $20.81 billion by 2029, with a CAGR of 24.32% | Mordor Intelligence |
| 71% of business and technology professionals familiar with conversational AI say their company has invested in chatbots | Forrester |
| 64% of CX leaders surveyed plan to increase investment in enhancing their chatbots within 2025 | Zendesk |
| North America filed over 60% of conversational AI patents globally, proving its leadership position in driving industry growth | Verified Market Research |
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Types of conversational AI solutions
There are multiple types of conversational AI solutions featuring different capabilities and deployed to perform specific tasks.
AI chatbots
This type of conversational AI works through a combination of ML (including deep learning) and NLP (encompassing natural language understanding or NLU and natural language generation or NLG). The former enables the solution to identify and learn human language patterns from big textual data sets, while the latter allows it to read and interpret textual user inputs and then formulate a response. Compared to traditional rule-based bots, conversational AI chatbots like Facebook Messenger chatbots can better interpret user intent and provide more relevant responses.
| A third of American consumers surveyed said they had used an AI chatbot in the past three months | Consumer Reports |
|---|
Which, if any, of the following have you used an AI chatbot to do?
Scheme title: Top AI chatbot use cases among US consumers
Data source: Consumer Reports
Virtual assistants
These virtual agents can handle both standard AI chatbot duties, including question answering, and more complex user assistance tasks, such as making transactions or controlling smart home devices. Popular examples include Apple Siri and Amazon Alexa.
| The virtual assistant market is expected to grow by $64.5 billion between 2023 and 2028 with a CAGR of 51%. | Technavio |
|---|---|
| 67% of consumers say they approve of AI in customer experience and are eager to delegate tasks like handling customer service issues to a personal AI assistant | Zendesk |
| By 2027, 87% of CX trendsetters are expected to design an experience that allows consumers to use AI assistants throughout the customer journey | Zendesk |
Scheme title: Consumer perception of AI assistant usefulness by task and generation
Data
source: Zendesk
Generative AI agents
Generative AI chatbots like ChatGPT help users manage and analyze information to extract valuable insights. They can be leveraged for tasks such as database querying, content summarization, and report generation.
| As of August 2024, OpenAI reported that ChatGPT has more than 200 million weekly active users (double the November 2023 number), and that the user base of its application programming interface or API has doubled since the launch of ChatGPT-4o mini in July. OpenAI also said that 92% of Fortune 500 companies use its products | Reuters |
|---|
Prior use of conversational commerce to purchase
GenAI conversational commerce interest
Scheme title: Interest in using genAI-based vs traditional chatbots for commerce
Data source: BCG
Voice assistants
These AI agents integrate speech recognition and synthesis capabilities to understand and answer questions in spoken language, enabling real-time, hands-free interactions, especially on mobile devices, and fostering customer engagement. Various virtual assistants, including Siri and Alexa, currently fall within this category too.
| 51% of consumers surveyed have interacted with advanced voice AI | Zendesk |
|---|---|
| The number of voice assistant users in the United States is expected to grow to 157.1 million by 2026 | Statista |
| In 2024, an estimated 48.7% of US internet users used voice assistants. The majority of voice assistant users (89.2%) access this technology via smartphones, a trend that is even more pronounced among Gen Zs (94.5%). Voice assistant usage is growing slowly (2.9% in 2024) but steadily | EMARKETER |
| 90% of CX trendsetters believe that voice AI is ushering in the next era of voice-driven customer service interactions | Zendesk |
Conversational AI capabilities most appreciated by customers
Performance, flexibility, transparency, and human-like experience are some of the key customer expectations when it comes to interacting with conversational AI solutions.
| 68% of respondents cited the speed of response as the most positive aspect of chatting with a chatbot | Userlike |
|---|---|
| 77% of respondents cited the option to switch to a human agent as the most important thing that companies should do when implementing chatbots. 61% of respondents also said they would personally use a chatbot to find a human agent | Userlike |
| 54% of respondents want chatbots to make it clear that they are bots | Userlike |
| 67% of consumers surveyed believe that more natural-sounding AI on phones would improve their experience, making it more similar to human interactions | Zendesk |
| 68% of consumers say they trust AI agents more if they are friendly, engaging, and embody human-like traits | Zendesk |
Conversational AI for key business functions
While many conversational AI applications handle interactions with existing or potential clients, chatbots and virtual assistants can also assist companies’ workforce with their day-to-day tasks.
Customer support
| 96% of surveyed shoppers believe more businesses should opt for chatbots over traditional customer service | Statista |
|---|---|
| 35% of surveyed shoppers said they were interested in using customer support chatbots available on retailer or brand websites | Statista |
| By 2025, 80% of customer service and support organizations are expected to use generative AI technology in some form to improve agent productivity and customer experience. Generative AI will be primarily applied for content creation, AI-powered chatbots, and automation of human work | Gartner |
| By 2026, approximately 10% of interactions with contact center agents are expected to be automated via AI-powered chatbots or voicebots | Gartner |
| Around 83% of respondents who work in contact centers said that customers now expect their issues to be resolved any time, any day due to the advent of chatbots and other forms of digital engagement | Statista |
| Generative AI-based chatbots could further reduce the volume of human-serviced contacts by up to 50% depending on a company’s existing level of automation | McKinsey |
| 81% of consumers believe that artificial intelligence has become an integral part of modern customer service, an increase of 11 points from last year | Zendesk |
| A service chatbot’s ability to move the client’s issue forward was the top driver for adoption, explaining 18% of the variance in customers’ likelihood to use that chatbot again | Gartner |
Scheme title: Customer service chatbots’ resolution rates by issue type
Data source: Gartner
Marketing & sales
Consumers are interested in GenAI powered conversational commerce’s ability to provide in-depth
product
information and personalized recommendations
Reasons for wanting to try GenAI conversational commerce
Features wanted in GenAI powered conversational commerce
Scheme title: Top features of genAI-based B2C chat platforms for commerce
Data source: BCG
Human resources management
| GenAI-powered chatbots can access corporate knowledge bases and provide employees with personalized training recommendations. These capabilities account for 12% of genAI’s total value potential in HR | McKinsey |
|---|---|
| Most companies use ChatGPT to facilitate hiring operations: 77% say it helps them write job descriptions, 66% write interview requests, and 65% respond to candidates | Resume Builder |
| Using the AI-powered IBM watsonx Assistant, HR managers were able to reduce employee time spent on common HR workflows by 75% | IBM |
Conversational AI across industries
Despite AI chatbots’ growing popularity in a wide range of use cases across all industries, the retail sector is clearly at the forefront of chatbot adoption according to both Grand View Research and Mordor Intelligence, followed by BFSI and healthcare.
Retail & ecommerce
| 66% of US consumers surveyed expressed strong interest in trying GenAI-powered conversational commerce, potentially doubling the use of this channel | BCG |
|---|---|
| Consumers are interested in chatbot functionality: 44% of respondents appreciate chatbots helping them find product information before actually purchasing | Statista |
| Retail and ecommerce account for 21% of the global conversational AI market | Fortune Business Insights |
| Global retail spending on chatbots is expected to reach $72 billion by 2028 | Juniper Research |
Financial services
| The banking, financial services, and insurance (BFSI) industry is a major adopter of chatbot technology, with a market share of 23% in 2024. Chatbots in this industry are primarily used for lead generation, customer acquisition, payment processing, and automated customer support | Mordor Intelligence |
|---|---|
| 48% of US banking executives surveyed plan to use genAI to improve customer-facing chatbots and virtual assistants | Google Cloud |
| 33.2% of adult consumers in the US were expected to use AI-based banking chatbots by the end of 2024 | EMARKETER |
Healthcare
| The adoption of chatbot technology in healthcare is expected to grow by 33.72% between 2024 and 2028 | Mordor Intelligence |
|---|---|
| 81% of consumers have used an AI chatbot or voice assistant in the past year to seek support from a healthcare provider. 41% of them described their experience as positive, 25% rated it as neutral, and 15% said they had a negative experience | Hyro |
| The symptom-checking segment dominated the healthcare chatbots market with a revenue share of over 37% | Grand View Research |
| While the cloud segment of the healthcare chatbot market is projected to register the highest revenue growth (over 63.4%), the on-premises segment is also expected to grow, with direct control over sensitive patient data being a major factor in choosing the latter option | Grand View Research |
Benefits of conversational AI adoption
Conversational AI technology enables businesses to increase customer satisfaction through 24/7 service delivery while boosting efficiency and cutting costs via process automation.
Better customer experience
| Over 40% of consumers surveyed appreciate that chatbots can help outside of normal customer service hours | Userlike |
|---|---|
| 91% of CX leaders believe that artificial intelligence, including AI agents, can provide customers with highly personalized experiences | Zendesk |
| 38% of customer service leaders believe that improving customer experience and retention is the primary goal of implementing applications trained on large language models | Gartner |
Superior operational efficiency
| Companies are embracing autonomous service solutions to benefit from improved performance and efficiency and unlock next-level customer interactions, achieving excellent results: 90% of CX Trendsetters report a positive ROI on AI copilots for customer service teams | Zendesk |
|---|---|
| Once implemented at scale, generative AI chatbots could increase productivity by 30% to 50% or more | BCG |
Cost optimization
| By 2026, implementing conversational AI in contact centers is expected to reduce agent labor costs by $80 billion | Gartner |
|---|
Conversational AI adoption concerns & limitations
General lack of trust, security concerns, and preference for human conversationsare some of the aspects that currently limit the use of conversational AI among consumers. These factors, combined with more technical and budget issues, could discourage organizations from fully incorporating this technology into their operations.
Scheme title: Customer friction points preventing B2C conversational AI usage
Data source: BCG
Consumer distrust
| At least 60% of consumers surveyed said they would rather wait in a queue than interact with a chatbot if it meant they could immediately speak to a human agent | Userlike |
|---|---|
| At least 54% of customers surveyed would use a chatbot for basic requests, such as asking about a product. However, only 23% of respondents are willing to resolve disputes via bots | Userlike |
| Only 16% of online adults surveyed in the United States would often use chatbots to get assistance from businesses | Forrester |
| 23% of customers don’t trust GenAI-powered financial service chatbots | Salesforce |
| While 68% of people have used an automated chatbot for customer service, 88% still prefer to speak to a person when looking for help | Ipsos |
Technical complexities
| Poorly integrated, unintelligent chatbots are the most commonly reported area of digital friction in financial services by a significant margin (39%) | Salesforce |
|---|---|
| Large-scale conversational AI deployments can take several years to complete as multiple conversational flows are developed and refined. Integration pricing typically ranges between $1,000 and $1,500 per conversational AI agent. This limits conversational AI adoption primarily to organizations with 2,500 or more agents and the budget for the necessary technical resources | Gartner |
Privacy & security
| 45% of American consumers surveyed said that companies that own chatbots should never store customer data as part of a person's user profile, a higher percentage than for health-related apps (39%) | Consumer Reports |
|---|---|
| Nearly half of customer service agents are turning to shadow AI (unapproved external AI tools) in the workplace. In some industries, shadow AI usage has increased 250% year over year, exposing companies to significant security risks | Zendesk |
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Aiming for more human & secure conversational AI
It’s clear that the evolution of customer habits and the widespread adoption of conversational AI are two
intertwined trends. Companies are deploying chatbots and virtual assistants to achieve greater scalability in
support and other functions while meeting customer demand for faster service delivery. At the same time,
consumers and business users are growing more appreciative of the opportunities unlocked by conversational AI
(such as self-service or 24/7 support), raising their expectations and giving companies more reasons to invest
in this technology.
That said, consumers see conversational AI as an alternative option rather than a complete replacement
for human interaction. Furthermore, they expect human-like communication and a transparent and secure user experience,
especially in terms of data protection. In view of this, you can consider relying on an experienced partner like
Itransition to implement conversational AI solutions that combine performance and accuracy with rigorous adherence
to your industry's quality standards and data management regulations.
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