This market study examines the Conversational AI landscape in detail; assessing the impact of technological advancements with large language models and agentic AI frameworks. The report delivers an in-depth analysis of the strategic opportunities for vendors; addressing key technological advancements, industry demand, and considerations for navigating the regulatory landscape surrounding AI.
It also evaluates country level opportunities for conversational AI growth via Juniper Research’s Country Readiness Index; identifying the key markets that conversational AI vendors should focus on next year.
Please note: the online download version of this report is for a global site license.
- 1. Key Takeaways & Strategic Recommendations
- 1.1 Key Takeaways
- 1.1.1 Agentic AI Will Increase the Level of Automation Possible with Conversational AI Systems
- 1.1.2 Conversational AI Market Growth Driven by Growth of Rich Media Channels & Third-party AI Development
- i. Growth of Rich Media Channels, such as RCS and OTT Apps
- Figure 1.1: Global Number of Rich Media Channel Users (m), Split by 3 Channels, 2020-2029
- ii. Development of Third-party AI Solutions
- 1.2 Strategic Recommendations
- 1.2.1 Conversational AI Vendors Must Ensure Predictability of Conversational AI Spend
- 1.2.2 Vendors Must Develop or Partner with Customer Data Platforms
- 1.2.3 Conversational AI Vendors Must Improve Intent and Sentiment Analysis for Intelligent Conversation Routing
- 2. Future Market Outlook
- 2.1 Introduction
- 2.2 Future Market Outlook – Conversational AI
- Figure 2.1: Total Conversational AI Service Revenue ($m), 2025-2029, Split by 8 Key Regions
- Figure 2.2: Total Number of Chatbot Users in 2025 (m), Split by 8 Key Regions
- 2.2.1 Key Drivers of the Conversational AI Market
- i. Technological Advancements Driving Conversational AI Adoption
- ii. Reduced Cost and Cost Predictability of Conversational AI Services will Drive Higher Adoption Rates
- iii. Increased Consumer Demand for Conversational Messaging
- Figure 2.3: Countries With the Highest Number of OTT Messaging Users in 2025 (m)
- 2.3 Future Market Outlook – Conversational Commerce
- Figure 2.4: Total Spend on Goods or Services via Chatbots ($m), 2025-2029, Split by 8 Key Regions
- 2.3.1 Key Drivers of the Conversational Commerce Market
- i. Growing Popularity of Superapps
- 2.4 Navigating the Regulatory Landscape
- i. Provide Guidance when Creating Guardrails
- 3. Industry Demand
- 3.1.1 Industry Demand
- i. Banking and Finance
- ii. Retail
- iii. Healthcare
- iv. Transport
- 4. Country Readiness Index
- 4.1 Conversational AI Country Readiness Index
- Figure 4.1: Countries in Each Region
- Table 4.2: Juniper Research Conversational AI Country Readiness Index: Scoring Criteria
- Figure 4.3: Juniper Research Country Readiness Index – Conversational AI
- Table 4.4: Conversational AI Country Readiness Index: Market Segments
- 4.1.1 Focus Markets
- i. Focus Markets Have Started to Implement More Comprehensive AI Regulations and Frameworks
- Figure 4.5: Proportion of B2C Businesses Implementing Conversational AI (%), Key Focus Markets in West Europe in 2025
- ii. Notable Deployments of Conversational AI Will Accelerate Enterprise Adoption
- 4.1.2 Growth Markets
- i. High Number of OTT Messaging Users
- Figure 4.6: Proportion of Mobile Subscribers that are Active OTT Messaging Users in Growth Markets in 2025 (%)
- 4.1.3 Saturated Markets
- i. High A2P Traffic but Limited Opportunity for Conversational Messaging Across Rich Media Channels
- Figure 4.7: Proportion of Mobile Subscribers that are Active OTT Messaging Users (%) in Saturated Markets in 2025
- 4.1.4 Developing Markets
- i. Lower A2P Messaging Traffic Volumes Indicates Lower Enterprise Readiness for Conversational AI
- Figure 4.8: Average Number of A2P Messages Received per Mobile Subscriber per Month in Select Developing Markets, Compared with Select Focus Markets
- Table 4.9: Juniper Research Country Readiness Index Heatmap: North America
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