Call Center AI Market Size - By Component (Solution, Services), End-user (BFSI, Retail & E-commerce, Telecom, Healthcare, Media & Entertainment, Travel & Hospitality), Deployment Model (On-premises, Cloud), Application & Global Forecast, 2024 - 2032
Published Date: July - 2024 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationCall Center AI Market Size - By Component (Solution, Services), End-user (BFSI, Retail & E-commerce, Telecom, Healthcare, Media & Entertainment, Travel & Hospitality), Deployment Model (On-premises, Cloud), Application & Global Forecast, 2024 - 2032
Call Center AI Market Size
Call Center AI Market size was valued at USD 1.8 billion in 2023 and is estimated to register a CAGR of over 19.8% between 2024 and 2032. The rising cost of hiring & retaining call center agents is a significant factor propelling the market growth. As businesses face increased labor costs and agent turnover, they will seek AI-driven solutions to automate routine tasks, improve efficiency, and enhance customer services. AI-powered chatbots, virtual agents, and speech recognition systems are reducing the need for human interventions, leading to cost savings and improved customer interactions.
To get key market trends
The increasing demand for improved customer services is driving the call center AI market size. Businesses are using AI technologies including chatbots, Natural Language Processing (NLP), and sentiment analysis to efficiently provide exceptional customer experiences under immense pressure. AI-driven systems offer 24/7 support, quick issue resolutions, and personalized interactions to meet the customer expectations and enhance satisfaction. As companies prioritize customer-centricity, the adoption of AI in call centers will continue to surge, thereby driving market expansion.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Call Center AI Market Size in 2023 | USD 1.8 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 19.8% |
| 2032 Value Projection | USD 8.6 Billion |
| Historical Data for | 2018 – 2023 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 344 |
| Segments covered | Component, deployment model, application, and end-user |
| Growth Drivers |
|
| Pitfalls & Challenges |
|
What are the growth opportunities in this market?
The big hurdle for AI-powered chatbots and virtual assistants in call centers is convincing customers they can handle the job. Many customers are worried about AI making mistakes or not understanding them, so they might be hesitant to talk to an AI-powered chatbot or virtual assistant. To get past this, companies need to build trust in their AI systems. To build trust, companies should use AI solutions that can give accurate and consistent answers. They should also be open about when they're using AI and make it easy for customers to switch to a live agent if they need to. By doing these things, companies can give customers a good experience and make them more willing to use AI-powered services.
COVID-19 Impact
The COVID-19 pandemic positively impacted the call center AI market as it accelerated the need for automation & remote customer service solutions. The pandemic forced businesses to deal with increased call volumes, remote work challenges, and a greater demand for contactless customer interactions. Call center AI technology is essential in addressing these issues as it offers scalable & efficient solutions for handling customer inquiries, reducing wait times, and ensuring business continuity. This crisis underscored the importance of AI-driven automation in call centers, leading to increased product adoption and industry growth.
Call Center AI Market Trends
AI-powered virtual agents are an emerging trend in the call center AI industry due to their transformative impact on customer services. These virtual agents, powered by advanced Natural Language Processing (NLP) and Machine Learning (ML) technologies, can swiftly & accurately handle routine customer inquiries, thereby enabling the freeing of human agents for more complex tasks. They offer 24/7 availability, consistency in responses, and the ability to handle high call volumes. As businesses prioritize efficiency & cost-effectiveness, AI virtual agents are becoming integral in delivering superior customer experiences while optimizing operational resources, making them a prominent trend in the industry.
Omnichannel support is an emerging trend in the call center AI market owing to the need for unified & seamless customer experiences. Businesses are increasingly adopting AI solutions to integrate customer support across multiple communication channels including voice, chat, email, and social media. This trend ensures consistent & personalized interactions, regardless of the channels chosen by customers. AI-powered omnichannel solutions enable efficient issue resolutions, reduce customer frustrations, and enhance the overall satisfaction. As customer expectations evolve, the adoption of AI for omnichannel support will become crucial for businesses striving to deliver superior services and retain customer loyalty.
For instance, in March 2023, Sprinklr launched 120 new customer service features and 25 AI innovations for enhancing its omnichannel customer services. These innovations are designed to streamline & optimize customer interactions across various channels, thereby providing businesses with advanced tools to deliver exceptional customer experiences and efficiently manage customer support operations.
Call Center AI Market Analysis
Learn more about the key segments shaping this market
Based on component, the solutions segment held over 60% of the market share in 2023, due to the increasing demand for versatile & specialized AI tools. This includes AI-powered chatbots, virtual agents, voice recognition, and analytics platforms. As businesses seek to improve customer services, automate routine tasks, and gain insights from call data, they will invest in these AI components. The flexibility & scalability of such solutions enables companies to tailor their call center operations efficiently, thereby resulting in enhanced customer experiences and operational efficiency; this will contribute to segment growth.
For instance, in February 2023, Bharti Airtel entered into a partnership with Nvidia to develop an AI-based speech analytics solution to enhance customer experiences in its contact centers. This collaboration will improve the efficiency of call center agents and provide better services to customers while minimizing computing costs. The solution uses AI to analyze & optimize inbound calls, thereby ensuring smoother interactions as well as greater satisfaction for both agents and callers.
Learn more about the key segments shaping this market
Based on deployment model, the cloud segment accounted for 40% of the call center AI market share in 2023, owing to its inherent advantages. Cloud-based AI solutions offer scalability, flexibility, and cost-efficiency. They allow businesses to swiftly adopt & scale AI technologies without the need for extensive infrastructure investments.
Furthermore, cloud-based deployments enable seamless integration with existing systems and provide real-time updates; this ensures that call center operations stay agile and up-to-date with the latest AI advancements. In an era where remote work and accessibility are crucial, the cloud deployment model facilitates remote access to AI tools, making it an attractive choice for businesses aiming to enhance customer support efficiency and deliver superior experiences. As the demand for scalable & accessible AI solutions continues to grow, the cloud segment will experience substantial growth in the market.
Looking for region specific data?
North America call center AI market recorded around 30% of the revenue share in 2023. The region boasts of a mature tech ecosystem, with many businesses being eager to adopt AI-driven customer service solutions to enhance efficiency and customer experiences. Additionally, a strong focus on innovations as well as research & development initiatives is fueling AI advancements. Furthermore, regulatory frameworks and a competitive landscape are encouraging investments in AI technologies.
As customer expectations evolve, North America's adoption of AI solutions in call centers will continue growing; this is poised to drive market expansion and technological innovations. For instance, in September 2023, Google invested USD 20 million to support the responsible development of AI. This funding initiative will promote responsible AI practices, thereby ensuring that AI technologies in call centers are deployed ethically as well as in a manner that enhances customer satisfaction and operational efficiency.
Call Center AI Market Share
The major companies operating in the call center AI industry are
- IBM Corporation
- Google LLC
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- Amazon Web Services
- Genesys
These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research ideas to introduce innovative products and garner the maximum market revenue.
Call Center AI Industry News
- In September 2023, Intradiem launched an innovative AI-powered solution that predicts contact center agent attrition, thereby allowing companies to proactively address the employee retention challenges. Attrition prediction helps call centers maintain a stable workforce, thereby reducing the need for frequent agent recruitment & training. Consequently, it enables call centers to deliver more consistent & efficient customer services, thereby aligning with the market focus on improving operational effectiveness and customer experiences.
The call center AI market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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Market, By Component
- Solution
- Services
- Professional services
- Managed services
Market, By Deployment Model
- On-premises
- Cloud
Market, By Application
- Workforce optimization
- Predictive call routing
- Journey orchestration
- Agent performance management
- Sentiment analysis
- Appointment scheduling
Market, By End-user
- BFSI
- Retail & e-commerce
- Telecom
- Healthcare
- Media & entertainment
- Travel & hospitality
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Southeast Asia
- ANZ
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
Frequently Asked Questions (FAQ)
How big is the call center AI market?
The market size of call center AI reached USD 1.8 billion in 2023 and is set to witness 19.5% CAGR from 2024 to 2032, due to the rising cost of hiring & retaining call center agents and the increasing need for improved customer services worldwide.
Why is the demand for call center AI solutions growing?
The solution component segment held over 60% of the market share in 2023, on account of the increasing preference for versatile & specialized AI tools.
What factors are influencing call center AI industry growth in North America?
North America market registered over 30% of the revenue share in 2023, owing to the presence of mature tech ecosystem in the region.
Who are the key call center AI market market players?
IBM Corporation, Google LLC, Microsoft Corporation, Oracle Corporation, SAP SE, Amazon Web Services, and Genesys are some of the major call center AI companies worldwide.
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