Published: October 2019 | Report Code: IM11750 | Available Format: PDF | Pages: 162
The call center artificial intelligence (AI) market revenue stood at $914.5 million in 2018, and it is expected to exceed $2,990.1 million by 2024, demonstrating a CAGR of 22.6% during 2019–2024. The major growth drivers for the market include the increasing volume of data, burgeoning demand for improved customer services, surging usage of AI-supported chatbots for managing work operations, and expanding practice of customer engagement through different platforms including email, website, and social media.
The growing adoption of AI-powered chatbots is a major trend in the call center AI industry. These chatbots use the existing information, such as the organization’s knowledge base and frequently asked questions (FAQs), to offer better customer service. Chatbots cut down the waiting time for customers because their response time is immensely fast. Unlike human agents, AI-enabled chatbots can provide support to numerous customers simultaneously. For example, in China, WeChat uses a combination of AI chatbots and human agents across its customer service channels to cater to more than 1 billion active users.
The rising demand for better customer support services in the retail, telecom, healthcare, and banking, financial services, and insurance (BFSI) industries acts as a catalyst for the call center AI market growth. For instance, in August 2018, Marks and Spencer plc, a U.K.-based retailer, announced its plan to deploy an AI system that will allow 100 switchboard employees to be reassigned. The AI system, offered by Twilio Inc., can handle calls for 640 stores from 13 contact center hubs in the country. The system enables routing of voice calls to the appropriate department and analyzing 12 million customer interactions in real time every year.
In 2018, the solutions category generated the highest revenue within the component segment. Among all the solutions, chatbots generated the highest revenue in the call enter ai industry in the past. This was due to the rising demand for the reduction in the training cost of agents, personalized consumer experience, and improved customer service via faster customer issue resolution than human agents in the BFSI, telecom, media & entertainment, and retail & e-commerce sectors.
The automatic speech recognition (ASR) category, under the technology segment, generated the highest revenue in 2018, as this technology can create customer databases with accurate insights. These databases help organizations in forecasting customer behavior and achieving consumer satisfaction. Moreover, this technology available with call center AI market players enables companies to accurately capture every shred of information for analysis and mapping the performance of agents.
The BFSI category, within the industry segment, will witness the fastest growth in the coming years due to the soaring need for enhanced customer satisfaction, omnichannel customer experience, and reduction in the training cost for financial institutions and banks.
The North American market for call center AI solutions emerged as the leader in the past, and it is expected to maintain its dominance in the future. This can be attributed to the increasing investments for the adoption of AI, growing inclination toward automated operations in call centers, and rising innovations in the voice recognition technology.
Besides, the presence of major players offering personalized AI solutions to customers and demand for a higher call center employee productivity will support the market growth in the region. In 2024, the U.S. will dominate the North American market with revenue of $1,009.1 million.
The Asia-Pacific (APAC) region will witness the fastest growth in the coming years owing to the constant technological advancements in call center solutions, presence of numerous call centers, high demand for improvements in employee productivity, and vast increment in customer expectations. In the foreseeable future, China is expected to dominate the APAC call center AI market. This will be due to the surging requirement for transformation in call center operations, increasing need for reducing the operational expenditure of enterprises, and rising investments in the voice recognition and speech analytics technologies in the country.
The call center AI market is fragmented in nature, owing to the presence of players such as Microsoft Corporation, International Business Machines Corporation, Google LLC, Amazon Web Services Inc., and Oracle Corporation. The market also comprises of other important players such as Avaya Inc., NICE inContact, Talkdesk Inc., Cogito Corporation, SmartAction LLC, Five9 Inc., Twilio Inc., and Zendesk Inc., Haptik Inc., Twilio Inc., and Avaamo Inc.
In recent years, major players in the market have taken several strategic measures including partnerships, acquisitions, product launches, and agreements to gain a competitive edge in the industry. For instance, in April 2019, U.S. based bank, Regions Financial Corporation, has partnered with International Business Machines Corporation to deploy AI solutions in its contact centers in order to improve customer service experience and help bankers in their routine operations. The bank has utilized Watson Assistant which enable bankers to resolve customer queries faster and also provide guidance on customer queries.
In July 2019, a U.K. based insurance company, British United Provident Association Limited (Bupa) adopted AI in its contact centers in the U.K. The company has introduced an automated ID service, which uses machine learning and speech recognition, which enable to verify the caller identity, respond to customer queries, and learn from past transactions. Since its launch, 85% of callers prefer to choose the automated option and interact with agents effectively.
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