Global Conversational AI Market 2025-2035
Description
Global Conversational AI Market Size, Share & Trends Analysis By Type (Intelligent Virtual assistant (IVA) and Chatbot), By Mode of Integration (Web-Based, App-Based, and Telephonic), By Technology (Machine & Deep learning, Natural Learning Process (NLP), and Automatic Speech Recognition (ASR)), By Business Function (Customer Service, IT, HR, Sales & Marketing, Operations & Supply Chain, Finance & Accounting, and Others), and By End-Users (BFSI, Retail & E-Commerce, Healthcare, IT & Telecom, Media & Entertainment, and Others) Forecast Period (2026-2035)
Industry Overview
Conversational AI market was valued at $14.7 billion in 2025 and is projected to reach $132.0 billion by 2035, growing at a CAGR of 24.2% from 2026 to 2035. The global conversational AI market is driven primarily by rapid advancements in natural language processing and machine learning. The interpretation of these technologies to understanding, interpreting, and responding to human language more accurately and contextually. The NLP in chatbots allows for handling complex inquiries and improving over time. For instance, in March 2025, Google advances its customer engagement suite. The suite houses its CCaaS offering, formerly the Google Contact Center AI Platform, alongside several conversational AI solutions. Google’s advancements through ML & NLP in the customer engagement suite will power contextual understanding and task automation.
Market Dynamics
Rising Demand for Personalized and Efficient Customer Engagement
The rising demand for personalized and efficient customer engagement is the key driver to propel the growth of the global conversation AI market during the forecast period. Organizations across the globe are under pressure to deliver real-time support, instant query resolution, and consistent experiences. For instance, in February 2025, Amazon Web Series introduced Alexa+, a new personal AI assistant to get things done more conveniently. Alexa+ is smarter, more conversational, more capable, and free with Prime. Thus, this innovation highlights how advanced conversational AI is enabling businesses to offer seamless, personalized, and efficient customer experiences.
Rising Popularity of Voice-Enabled Devices and Virtual Assistants
The adoption of smart voice devices such as speakers, smartphones, and IoT devices is creating demand for voice-enabled devices. The companies’ voice-enabled devices, such as Amazon Alexa, Google Assistant, and Apple Siri, are further pushing organizations across the sectors to integrate conversational AI into their products and services to improve their service effectively and efficiently. For instance, in July 2025, Google announced that its AI assistant app Gemini had surpassed 450 million active users globally. The numbers announced by the company indicate that the app is growing with an increasing number of users. This demonstrates how voice-enabled assistants are rapidly becoming essential tools for delivering personalized, efficient, and seamless customer experiences globally.
Market Segmentation
Among the business functions, the customer service segment is expected to hold the largest share in the market owing to pressure to deliver real-time assistance, personalized interactions, and instant query resolution. Customer service has emerged as the most critical application area for conversational AI. The organizations across the industries, such as BFSI, healthcare, and others, are focusing on implementing AI along with the deployment of chatbots in their business to handle high volumes of customer queries and resolve them by time. For instance, in June 2025, Verizon, in collaboration with Google, announced the new Gemini-fueled Verizon chatbot. The chatbot will assist customers in solving complex issues, such as managing upgrades, billing questions, and more. Thus, the integration of conversational AI in customer service improves user experience. The companies will also reduce operational costs by automating routine inquiries and enabling human agents to focus on complex issues.
BFSI: A Key Segment in Market Growth
The Banking, Financial Services, and Insurance (BFSI) is expected to be a key segment to propel the growth of the market. BFSI across the globe are implementing conversational AI solutions such as chatbots and virtual assistants to provide personalized assistance and faster query resolution. The customers are continuously demanding seamless, secure, and real-time support for transactions and inquiries, which is pushing BFSIs to adopt conversational AI. For instance, in January 2025, BSN launched Bella, a chatbot powered by GenAI, which will be available 24/7. The company has implemented a chatbot to enable customers to access banking services seamlessly any anytime, from anywhere.
Regional Outlook
The global conversational AI market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
North America is Driving Market Growth
North America is expected to hold the largest market share in the global conversational AI market owing to the presence of leading technology providers such as Apple, Microsoft, IBM, and others. These companies are continuously adopting AI solutions to fulfill the strong demand for customer service. For instance, in August 2025, Apple announced the release of Customer Support Agent, a virtual agent available within the Apple Support app. Virtual agents can tackle everyday device and service issues. The users can have instant answers and sparing them the hassle of waiting for a live agent.
Asia-Pacific Region Shares Significant Market Share
The Asia-Pacific region is expected to hold a significant share in the global conversational AI market owing to the rapid digital adoption, booming e-commerce, and rising investment in AI technologies. For instance, in July 2025, CRIF announced the launch of an AI agent to offer a seamless and intuitive experience. The customers can ask questions to the virtual agent in natural language, and the agent will answer precisely. The virtual agent is designed to deliver actionable insights within seconds to customers. This reflects the region’s accelerating shift toward intelligent, customer-centric digital services.
Market Players Outlook
The global conversational AI market is driven by leading companies such Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., Salesforce, Inc., OpenAI, Nuance Communications, Inc., Kore.ai, Inc., LivePerson, Inc., Apple, Inc., SAP SE, and Oracle Corp., among others, with players strengthening their presence through strategic partnerships, mergers and acquisitions, innovative product launches, advanced technology integration, and expansion across emerging markets.
Recent Development
Industry Overview
Conversational AI market was valued at $14.7 billion in 2025 and is projected to reach $132.0 billion by 2035, growing at a CAGR of 24.2% from 2026 to 2035. The global conversational AI market is driven primarily by rapid advancements in natural language processing and machine learning. The interpretation of these technologies to understanding, interpreting, and responding to human language more accurately and contextually. The NLP in chatbots allows for handling complex inquiries and improving over time. For instance, in March 2025, Google advances its customer engagement suite. The suite houses its CCaaS offering, formerly the Google Contact Center AI Platform, alongside several conversational AI solutions. Google’s advancements through ML & NLP in the customer engagement suite will power contextual understanding and task automation.
Market Dynamics
Rising Demand for Personalized and Efficient Customer Engagement
The rising demand for personalized and efficient customer engagement is the key driver to propel the growth of the global conversation AI market during the forecast period. Organizations across the globe are under pressure to deliver real-time support, instant query resolution, and consistent experiences. For instance, in February 2025, Amazon Web Series introduced Alexa+, a new personal AI assistant to get things done more conveniently. Alexa+ is smarter, more conversational, more capable, and free with Prime. Thus, this innovation highlights how advanced conversational AI is enabling businesses to offer seamless, personalized, and efficient customer experiences.
Rising Popularity of Voice-Enabled Devices and Virtual Assistants
The adoption of smart voice devices such as speakers, smartphones, and IoT devices is creating demand for voice-enabled devices. The companies’ voice-enabled devices, such as Amazon Alexa, Google Assistant, and Apple Siri, are further pushing organizations across the sectors to integrate conversational AI into their products and services to improve their service effectively and efficiently. For instance, in July 2025, Google announced that its AI assistant app Gemini had surpassed 450 million active users globally. The numbers announced by the company indicate that the app is growing with an increasing number of users. This demonstrates how voice-enabled assistants are rapidly becoming essential tools for delivering personalized, efficient, and seamless customer experiences globally.
Market Segmentation
- Based on the type, the market is segmented into intelligent virtual assistants and chatbots.
- Based on the mode of integration, the market is segmented into web-based, app-based, and telephonic.
- Based on technology, the market is segmented into machine learning & deep learning, natural learning process, and automatic speech recognition.
- Based on the business function, the market is segmented into customer service, IT, HR, sales & marketing, operations & supply chain, finance & accounting, and others.
- Based on the end-users, the market is segmented into the BFSI, retail & e-commerce, healthcare, IT & telecom, media & entertainment, and others.
Among the business functions, the customer service segment is expected to hold the largest share in the market owing to pressure to deliver real-time assistance, personalized interactions, and instant query resolution. Customer service has emerged as the most critical application area for conversational AI. The organizations across the industries, such as BFSI, healthcare, and others, are focusing on implementing AI along with the deployment of chatbots in their business to handle high volumes of customer queries and resolve them by time. For instance, in June 2025, Verizon, in collaboration with Google, announced the new Gemini-fueled Verizon chatbot. The chatbot will assist customers in solving complex issues, such as managing upgrades, billing questions, and more. Thus, the integration of conversational AI in customer service improves user experience. The companies will also reduce operational costs by automating routine inquiries and enabling human agents to focus on complex issues.
BFSI: A Key Segment in Market Growth
The Banking, Financial Services, and Insurance (BFSI) is expected to be a key segment to propel the growth of the market. BFSI across the globe are implementing conversational AI solutions such as chatbots and virtual assistants to provide personalized assistance and faster query resolution. The customers are continuously demanding seamless, secure, and real-time support for transactions and inquiries, which is pushing BFSIs to adopt conversational AI. For instance, in January 2025, BSN launched Bella, a chatbot powered by GenAI, which will be available 24/7. The company has implemented a chatbot to enable customers to access banking services seamlessly any anytime, from anywhere.
Regional Outlook
The global conversational AI market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
North America is Driving Market Growth
North America is expected to hold the largest market share in the global conversational AI market owing to the presence of leading technology providers such as Apple, Microsoft, IBM, and others. These companies are continuously adopting AI solutions to fulfill the strong demand for customer service. For instance, in August 2025, Apple announced the release of Customer Support Agent, a virtual agent available within the Apple Support app. Virtual agents can tackle everyday device and service issues. The users can have instant answers and sparing them the hassle of waiting for a live agent.
Asia-Pacific Region Shares Significant Market Share
The Asia-Pacific region is expected to hold a significant share in the global conversational AI market owing to the rapid digital adoption, booming e-commerce, and rising investment in AI technologies. For instance, in July 2025, CRIF announced the launch of an AI agent to offer a seamless and intuitive experience. The customers can ask questions to the virtual agent in natural language, and the agent will answer precisely. The virtual agent is designed to deliver actionable insights within seconds to customers. This reflects the region’s accelerating shift toward intelligent, customer-centric digital services.
Market Players Outlook
The global conversational AI market is driven by leading companies such Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., Salesforce, Inc., OpenAI, Nuance Communications, Inc., Kore.ai, Inc., LivePerson, Inc., Apple, Inc., SAP SE, and Oracle Corp., among others, with players strengthening their presence through strategic partnerships, mergers and acquisitions, innovative product launches, advanced technology integration, and expansion across emerging markets.
Recent Development
- In August 2025, Amazon announced the launch of Rufus in India. Rufus is a generative AI-powered conversational shopping assistant. The virtual assistant can answer customer questions on shopping needs, products, and comparisons. The chatbot can make recommendations based on this context and facilitate product discovery.
- In July 2025, Mango launched a new Stylist assistant with conversational AI. The conversational AI assistant is to help shoppers and provide a fashion guide across the US and parts of Europe. The company launched a chatbot on its website to offer answers based on the context provided by users interested in personalized recommendations.
- In July 2025, NCS announced the launch of Sunshine.AI, a suite of AI tools and accelerators that transform how organizations develop intelligent solutions. The company has invested S$130 million over three years to lead change across Asia Pacific (APAC). ‘
- In July 2025, Pureprofile launched an AI chatbot for market research surveys. The AI tool is designed to make online surveys more engaging and extract deeper responses from participants.
- Market value data analysis for 2025 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global conversational AI market. Based on the availability of data, information related to new products and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
Table of Contents
265 Pages
- 1. Report Summary
- Current Industry Analysis and Growth Potential Outlook
- Global Conversational AI Market Sales Analysis - Type | Mode of Integration | Technology | Business Function | End-Users ($ Million)
- Conversational AI Market Sales Performance of Top Countries
- 1.1. Research Methodology
- Primary Research Approach
- Secondary Research Approach
- 1.2. Market Snapshot
- 2. Market Overview and Insights
- 2.1. Scope of the Study
- 2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Conversational AI Industry Trends
- 2.2.2. Market Recommendations
- 2.3. Porter's Five Forces Analysis for the Conversational AI Market
- 2.3.1. Competitive Rivalry
- 2.3.2. Threat of New Entrants
- 2.3.3. Bargaining Power of Suppliers
- 2.3.4. Bargaining Power of Buyers
- 2.3.5. Threat of Substitutes
- 3. Market Determinants
- 3.1. Market Drivers
- 3.1.1. Drivers For Global Conversational AI Market: Impact Analysis
- 3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global Conversational AI Market: Impact Analysis
- 3.3. Market Opportunities
- 3.3.1. Opportunities For Global Conversational AI Market: Impact Analysis
- 4. Competitive Landscape
- 4.1. Competitive Dashboard - Conversational AI Market Revenue and Share by Manufacturers
- Conversational AI Product Comparison Analysis
- Top Market Player Ranking Matrix
- 4.2. Key Company Analysis
- 4.2.1. Amazon Web Services, Inc.
- 4.2.1.1. Overview
- 4.2.1.2. Product Portfolio
- 4.2.1.3. Financial Analysis
- 4.2.1.4. SWOT Analysis
- 4.2.1.5. Business Strategy
- 4.2.2. Google LLC
- 4.2.2.1. Overview
- 4.2.2.2. Product Portfolio
- 4.2.2.3. Financial Analysis
- 4.2.2.4. SWOT Analysis
- 4.2.2.5. Business Strategy
- 4.2.3. IBM Corp.
- 4.2.3.1. Overview
- 4.2.3.2. Product Portfolio
- 4.2.3.3. Financial Analysis
- 4.2.3.4. SWOT Analysis
- 4.2.3.5. Business Strategy
- 4.2.4. Microsoft Corp.
- 4.2.4.1. Overview
- 4.2.4.2. Product Portfolio
- 4.2.4.3. Financial Analysis
- 4.2.4.4. SWOT Analysis
- 4.2.4.5. Business Strategy
- 4.2.5. Salesforce, Inc.
- 4.2.5.1. Overview
- 4.2.5.2. Product Portfolio
- 4.2.5.3. Financial Analysis
- 4.2.5.4. SWOT Analysis
- 4.2.5.5. Business Strategy
- 4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration
- 5. Global Conversational AI Market Sales Analysis By Type ($ Million)
- 5.1. Intelligent Virtual assistant (IVA)
- 5.2. Chatbot
- 6. Global Conversational AI Market Sales Analysis By Mode of Integration ($ Million)
- 6.1. Web-based
- 6.2. App-based
- 6.3. Telephonic
- 7. Global Conversational AI Market Sales Analysis By Technology ($ Million)
- 7.1. Machine & Deep learning
- 7.2. Natural Learning Process (NLP)
- 7.3. Automatic Speech Recognition (ASR)
- 8. Global Conversational AI Market Sales Analysis By Business Function ($ Million)
- 8.1. Customer Service
- 8.2. IT
- 8.3. HR
- 8.4. Sales & Marketing
- 8.5. Operations & Supply Chain
- 8.6. Finance & Accounting
- 8.7. Others
- 9. Global Conversational AI Market Sales Analysis By End-Users ($ Million)
- 9.1. BFSI
- 9.2. Retail & E-Commerce
- 9.3. Healthcare
- 9.4. IT & Telecom
- 9.5. Media & Entertainment
- 9.6. Others
- 10. Regional Analysis
- 10.1. North American Conversational AI Market Sales Analysis - Type | Mode of Integration | Technology | Business Function | End-Users |Country ($ Million)
- Macroeconomic Factors for North America
- 10.1.1. United States
- 10.1.2. Canada
- 10.2. European Conversational AI Market Sales Analysis - Type | Mode of Integration | Technology | Business Function | End-Users | Country ($ Million)
- Macroeconomic Factors for Europe
- 10.2.1. UK
- 10.2.2. Germany
- 10.2.3. Italy
- 10.2.4. Spain
- 10.2.5. France
- 10.2.6. Russia
- 10.2.7. Rest of Europe
- 10.3. Asia-Pacific Conversational AI Market Sales Analysis - Type | Mode of Integration | Technology | Business Function | End-Users | Country ($ Million)
- Macroeconomic Factors for Asia-Pacific
- 10.3.1. China
- 10.3.2. Japan
- 10.3.3. South Korea
- 10.3.4. India
- 10.3.5. Australia & New Zealand
- 10.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Others)
- 10.3.7. Rest of Asia-Pacific
- 10.4. Rest of the World Conversational AI Market Sales Analysis - Type | Mode of Integration | Technology | Business Function | End-Users | Country ($ Million)
- Macroeconomic Factors for the Rest of the World
- 10.4.1. Latin America
- 10.4.2. Middle East and Africa
- 11. Company Profiles
- 11.1. Ada Support, Inc.
- 11.1.1. Quick Facts
- 11.1.2. Company Overview
- 11.1.3. Product Portfolio
- 11.1.4. Business Strategies
- 11.2. Amazon Web Services, Inc.
- 11.2.1. Quick Facts
- 11.2.2. Company Overview
- 11.2.3. Product Portfolio
- 11.2.4. Business Strategies
- 11.3. Anthropic PBC
- 11.3.1. Quick Facts
- 11.3.2. Company Overview
- 11.3.3. Product Portfolio
- 11.3.4. Business Strategies
- 11.4. Apple Inc.
- 11.4.1. Quick Facts
- 11.4.2. Company Overview
- 11.4.3. Product Portfolio
- 11.4.4. Business Strategies
- 11.5. Baidu, Inc.
- 11.5.1. Quick Facts
- 11.5.2. Company Overview
- 11.5.3. Product Portfolio
- 11.5.4. Business Strategies
- 11.6. Botpress Technologies, Inc.
- 11.6.1. Quick Facts
- 11.6.2. Company Overview
- 11.6.3. Product Portfolio
- 11.6.4. Business Strategies
- 11.7. Capacity
- 11.7.1. Quick Facts
- 11.7.2. Company Overview
- 11.7.3. Product Portfolio
- 11.7.4. Business Strategies
- 11.8. Cognigy GmBH
- 11.8.1. Quick Facts
- 11.8.2. Company Overview
- 11.8.3. Product Portfolio
- 11.8.4. Business Strategies
- 11.9. DeepSeek Artificial Intelligence Co., Ltd.
- 11.9.1. Quick Facts
- 11.9.2. Company Overview
- 11.9.3. Product Portfolio
- 11.9.4. Business Strategies
- 11.10. Freshworks, Inc.
- 11.10.1. Quick Facts
- 11.10.2. Company Overview
- 11.10.3. Product Portfolio
- 11.10.4. Business Strategies
- 11.11. Google LLC
- 11.11.1. Quick Facts
- 11.11.2. Company Overview
- 11.11.3. Product Portfolio
- 11.11.4. Business Strategies
- 11.12. Gridspace, Inc.
- 11.12.1. Quick Facts
- 11.12.2. Company Overview
- 11.12.3. Product Portfolio
- 11.12.4. Business Strategies
- 11.13. Haptik Technologies Ltd.
- 11.13.1. Quick Facts
- 11.13.2. Company Overview
- 11.13.3. Product Portfolio
- 11.13.4. Business Strategies
- 11.14. IBM Corp.
- 11.14.1. Quick Facts
- 11.14.2. Company Overview
- 11.14.3. Product Portfolio
- 11.14.4. Business Strategies
- 11.15. Inbenta Holdings, Inc.
- 11.15.1. Quick Facts
- 11.15.2. Company Overview
- 11.15.3. Product Portfolio
- 11.15.4. Business Strategies
- 11.16. Kore.ai, Inc.
- 11.16.1. Quick Facts
- 11.16.2. Company Overview
- 11.16.3. Product Portfolio
- 11.16.4. Business Strategies
- 11.17. LivePerson, Inc.
- 11.17.1. Quick Facts
- 11.17.2. Company Overview
- 11.17.3. Product Portfolio
- 11.17.4. Business Strategies
- 11.18. Meta Platforms, Inc.
- 11.18.1. Quick Facts
- 11.18.2. Company Overview
- 11.18.3. Product Portfolio
- 11.18.4. Business Strategies
- 11.19. Microsoft Corp.
- 11.19.1. Quick Facts
- 11.19.2. Company Overview
- 11.19.3. Product Portfolio
- 11.19.4. Business Strategies
- 11.20. Moveworks, Inc.
- 11.20.1. Quick Facts
- 11.20.2. Company Overview
- 11.20.3. Product Portfolio
- 11.20.4. Business Strategies
- 11.21. Nuance Communications, Inc.
- 11.21.1. Quick Facts
- 11.21.2. Company Overview
- 11.21.3. Product Portfolio
- 11.21.4. Business Strategies
- 11.22. OpenAI OpCo, LLC
- 11.22.1. Quick Facts
- 11.22.2. Company Overview
- 11.22.3. Product Portfolio
- 11.22.4. Business Strategies
- 11.23. Oracle Corp.
- 11.23.1. Quick Facts
- 11.23.2. Company Overview
- 11.23.3. Product Portfolio
- 11.23.4. Business Strategies
- 11.24. Quickchat AI
- 11.24.1. Quick Facts
- 11.24.2. Company Overview
- 11.24.3. Product Portfolio
- 11.24.4. Business Strategies
- 11.25. Rasa Technologies, Inc.
- 11.25.1. Quick Facts
- 11.25.2. Company Overview
- 11.25.3. Product Portfolio
- 11.25.4. Business Strategies
- 11.26. Salesforce, Inc.
- 11.26.1. Quick Facts
- 11.26.2. Company Overview
- 11.26.3. Product Portfolio
- 11.26.4. Business Strategies
- 11.27. Skit USA, Inc.
- 11.27.1. Quick Facts
- 11.27.2. Company Overview
- 11.27.3. Product Portfolio
- 11.27.4. Business Strategies
- 11.28. SoundHound AI, Inc.
- 11.28.1. Quick Facts
- 11.28.2. Company Overview
- 11.28.3. Product Portfolio
- 11.28.4. Business Strategies
- 11.29. Sprinklr, Inc.
- 11.29.1. Quick Facts
- 11.29.2. Company Overview
- 11.29.3. Product Portfolio
- 11.29.4. Business Strategies
- 11.30. Yellow.ai
- 11.30.1. Quick Facts
- 11.30.2. Company Overview
- 11.30.3. Product Portfolio
- 11.30.4. Business Strategies
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