Product Code: 66729
The AI Market in Call Center Applications is anticipated to witness a CAGR of 25.8% over the forecast period 2021 - 2026. AI technology has gained widespread recognition and adoption over the past few years. The market studied is experiencing a significant transformation. Recent technological advancements in this field have revealed new enterprises. Numerous players are emerging in this market with the hopes to navigate it toward mainstream adoption.
- Over the period of the next few years, messaging apps are anticipated to have more users than social media. Tech-savvy millennials are more likely to use chatbots and messaging platforms than traditional phone calls to connect with companies, to make their needs known. Thus, it has become essential for service providers to adapt accordingly.
- Call centers of the future are expected to be more efficient, high on performance, and predictive. AI can impact call center operations by predicting queries based on past activities of the customer, effective communication to perform instant query handling irrespective of the time and location, automation of the processes like following up with customers.
- The market for AI in call center applications is still in the nascent stage. Development of more AI solutions that'll be able to help in optimization, automation, and prediction can serve as a key driver for market adoption and penetration. Increasing usage of AI by organizations in pursuit of enhanced customer support service offerings, the increasing role of social media for customer engagement, and the exponential growth of data through the Internet of Things (IoT), social media are some other significant factors influencing the growth of AI market in call center applications while factors like lack of skilled labor and unsupervised learning are expected to hinder the market growth.
- A research study conducted by Oracle indicated that more than 80% of the organizations said that they already use chatbots for their customer experience or plan to do so by 2020. 24-hour service, instant responses to inquires, answers to simple questions are some of the benefits quoted by respondents, with the implementation of AI.
Key Market Trends
BFSI Vertical is Expected to Hold the Largest Market Size During Forecast Period
- BFSI vertical is at the forefront of applying AI enabled applications. The vertical is expected to lead the market for AI in call center applications during the forecast period owing to the highest adoption of AI call center platforms and solutions when compared to any other industry.
- BFSI vertical is the pioneer of the use of AI enabled smart chatbots, thereby redefining the experience of the customer. These chatbots engage with their consumers to provide them with an interface to automate several back-end tasks.
- AI solutions offered for call centers help BFSI institutions to connect with customers and improve their experience, while at the same time helps in lowering the customer churn, flawlessly. BFSI organizations are able to cut their operational costs of call centers by implementing these solutions and have enabled the tech-savvy customers to converse based on their convenience. A recent survey conducted by Econsultancy revealed that more than 80% of the customers preferred live chat over a telephonic conversation. Innovation Center for Artificial Intelligence estimates that chatbots will save the banking sector nearly USD 8 billion, by 2022.
- Many BFSI organizations are still in the process of transition from traditional banking services to modern-day digital experiences. These organizations would be able to market their services and provide excellent customer services with AI solutions, thereby driving the growth of the market.
- Round-the-clock availability, continuous engagement with the customers, timely assistance are some other factors driving the growth of the AI market in BFSI call centers.
North America Is Expected To Hold a Large Share of the AI Market in Call Center Applications
- The AI Market in Call Center Applications is currently dominated by companies in North America followed by those in Europe and Asia. Thereby, North America is expected to hold the largest share of the market studied and maintain its dominance during the forecast period. Rapid technological developments, the presence of global vendors in the market, increasing adoption of AI solutions in the region are some of the factors driving the growth of the market.
- One of the largest insurance companies in the United States, MetLife, adopted an AI system to improve responses to customers' emotional needs. The system was developed to help its staff to track and monitor the emotions expressed by customers during conversations, thereby enhancing the quality of customer service interactions.
- A global survey conducted by MIT Technology on almost 600 executives, revealed that more than 90% of the companies in North America had integrated AI into their system to enhance customer experience and about 60% of respondents believe AI-based solutions will increase customer lifetime value by next year.
- Asia Pacific (APAC) is the fastest growing market and is expected to provide lucrative opportunities for AI solution providers for call centers owing to the increasing number of startup companies in the region. Security concerns and lack of skilled workforce and supporting infrastructure in the region could affect the adoption of AI solutions and services.
The AI Market in Call Center Applications is a highly competitive market and is currently dominated by a few players with their technological expertise in AI technology. The global market is expected to be consolidated in nature. Major players with a prominent share in the market are focusing on expanding their customer base across foreign countries by leveraging on strategic collaborative initiatives to increase their market share and their profitability. Google Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Amazon Web Services Inc., Avaya Inc., Nuance Communications, Inc., Kore.ai, Inc., Haptik, Inc., Artificial Solutions International AB, Rulai, Inc., and Zendesk, Inc. are some of the major players present in the current market.
- April 2019 - Google launched a beta version of its Contact Center AI that uses tools like Dialogflow and Google's text-to-speech capabilities. This service is expected to allow its users to build a virtual agent system. The company also launched an end-to-end AI Platform for developers and data scientists, for building, testing and deploying their own models.
- April 2019 - PNB MetLife, one of the private life insurance companies in India, launched "Khushi", an AI-powered customer service app. The idea is to provide a personalized experience for their policyholders and differentiate their business from their competitors.
- March 2019 - MINDsLab launched AI voice generating service. This service is expected to automate repetitive compliance related calls and can be used to create content for various industries that include education, gaming, and entertainment.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Usage of AI by Organizations in Pursuit of Enhanced Customer Support Service Offerings
- 4.3.2 Increasing Role of Social Media for Customer Engagement
- 4.3.3 The Exponential Growth of Data
- 4.4 Market Restraints
- 4.4.1 Lack of Skilled Labor
- 4.4.2 Unsupervised Learning
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Deployment
- 5.1.1 Cloud
- 5.1.2 On-Premise
- 5.2 By End-user Industry
- 5.2.1 BFSI
- 5.2.2 Retail & E-Commerce
- 5.2.3 Telecom
- 5.2.4 Travel & Hospitality
- 5.2.5 Other End-user Industries
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Google Inc.
- 6.1.2 IBM Corporation
- 6.1.3 Microsoft Corporation
- 6.1.4 Oracle Corporation
- 6.1.5 SAP SE
- 6.1.6 Amazon Web Services Inc.
- 6.1.7 Avaya Inc.
- 6.1.8 Nuance Communications, Inc.
- 6.1.9 Kore.ai, Inc.
- 6.1.10 Haptik, Inc.
- 6.1.11 Artificial Solutions International AB
- 6.1.12 Rulai, Inc.
- 6.1.13 Zendesk, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS