Chatbots Show Huge Growth Potential

Research firm IMARC Group recently noted that the global chatbot market exhibited strong growth between 2015-2020 and projected it to grow at a compound annual rate of around 25 percent through 2026.

The report defines a chatbot as an artificial intelligence-based computer program used for simulating human conversations to enable users to interact with digital devices effectively. Chatbots, it said further, are usually developed on a developer framework with cloud backup, analytics, and database integrations and are incorporated into messaging applications, websites, mobile applications, and other digital devices for interacting as digital assistants through text or text-to-speech functionalities.

Chatbots, the report said, offer various benefits, such as improved efficiency of business operations, customer engagement, branding and advertisement, data privacy and compliance, payment processing, and automatic lead generation and qualification.

Rapid digitization and the increasing need for high-quality customer service across organizations are among the key factors driving growth, according to the report. Other growth factors include the widespread adoption of over-the-top messaging and social networking applications among younger consumers; technological advancements, such as the integration of predictive analytics, machine learning, blockchain, and cloud computing; significant improvements in the IT infrastructure; and extensive research and development in natural language processing.

Thanks to these innovations, modern chatbots can adapt to changing digital environments and provide a human-like conversational experience by learning from users' actions, experiences, and decisions, the report said.

Chatbots are an integral component of effective customer care programs and are used across industries like financial services and insurance, information technology, telecommunication, e-commerce, and healthcare, for resolving customer queries in minimal time, it said.

The report identifies [24]7.ai, Acuvate Software, Aivo, Artificial Solutions, Creative Virtual, eGain, IBM, Inbenta Technologies, Kore.ai, LiveChat, Nuance Communications, and Verint as leading providers of chatbot technology.

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