November 28

What is the future of chatbot?


Messenger bot

Conversational AI is already on the rise. In fact, the global market has a compounded annual growth rate of 22% for 2020 through 2025. The CAGR for the 2030s is likely to be even higher. This investment drives innovation and development in conversational AI, expanding its capabilities even further with deep learning and improved NLP.

Innovation will likely make conversational AI more accessible and affordable, allowing wider adoption. Additionally, training will become easier as usage and adoption grow. One of the main issues with today’s AI chatbots is that they remain expensive to train. Refined processes will help make sophisticated conversational versions more affordable.

Disappointment with first chatbots

For chatbots, the start was anything but easy. After the initial hype, only a few companies adapted the new technology. The initial interest also flattened out quickly because the first chatbots were simply not good enough. Instead of being a real support, the earlier chatbots often caused frustration because they did not understand commands or misinterpreted them.

In recent years, however, chatbots have developed further and further and thus have been able to gain significantly in acceptance and popularity. This was not least due to the fact that the focus of chatbots finally concentrated more on the benefits. So the primary goal was no longer to program a chatbot in such a way that it was indistinguishable from a human, but to make it as useful as possible.

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One of the key annoyances people have with chatbots is that they still speak to us like rookie salespeople reading from playbooks or robots trying too hard to sound human. That’s not going to last very long, however.

In a Decade, Today’s Struggles Will be Obselete

The past two years of remote interactions have accelerated the adoption of chatbots. 81% of industry leaders say the pandemic changed their technological needs, and the majority of consumers now prefer chatbots over other customer service channels.

In the near future, 75% to 90% of queries will be handled by bots. Businesses will begin allowing users to pay directly over live chat or Facebook Messenger apps. The usage of websites will decrease because chatbots will take care of the exhaustive browsing process. And interactions with AI will be indistinguishable from a conversation between two people.

Key chatbot statistics

Take a glance at the research-based statistics that provide valuable insights into the trends of the chatbot industry. Businesses can consider the statistical insights for successful deployment of virtual assistants.

  • The market size of Conversational AI is expected to reach USD$1.3 billion by 2025, growing at a CAGR of 24% (Cognizant)
  • The projected value of chatbot eCommerce transactions by 2023 is $112 billion. (Juniper Research)
  • More than 50% of enterprises will spend more per annum on bots and chatbot creation than traditional mobile app development. (Gartner)
  • 75-90% of queries is projected to be handled by bots by 2024. (CNBC)
  • The top industries profiting from chatbots are real estate, travel, education, healthcare, and finance. (Bell Service)
  • Chatbots can save up to 50% in customer support costs. (


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