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Chatbot Market to Grow by USD 5.37 Billion (2024-2028), How AI is Driving Market Transformation – Technavio Report

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NEW YORK, Aug. 23, 2024 /PRNewswire/ — The global chatbot market size is estimated to grow by USD 5.37 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 35.27% during the forecast period. Several benefits associated with using chatbots solutions is driving market growth, with a trend towards integration of chatbots with communication channels. However, lack of awareness and standardization of chatbot services poses a challenge. Key market players include 247.ai Inc., Acuvate, Aivo, Alphabet Inc., Amazon.com Inc., Artificial Solutions International AB, Avaamo Inc., Botsify, Conversica Inc., Creative Virtual Ltd., eGain Corp., Inbenta Holdings Inc., International Business Machines Corp., Kore.ai Inc., Meta Platforms Inc., Microsoft Corp., OpenAI L.L.C., Oracle Corp., ServiceNow Inc., and Zoom Video Communications Inc..

Get a detailed analysis on regions, market segments, customer landscape, and companies – Click for the snapshot of this report

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

End-user (Retail, BFSI, Government, Travel and hospitality, and Others), Product (Solutions and Services), and Geography (North America, APAC, Europe, South America, and Middle East and Africa)

Region Covered

North America, APAC, Europe, South America, and Middle East and Africa

Key companies profiled

247.ai Inc., Acuvate, Aivo, Alphabet Inc., Amazon.com Inc., Artificial Solutions International AB, Avaamo Inc., Botsify, Conversica Inc., Creative Virtual Ltd., eGain Corp., Inbenta Holdings Inc., International Business Machines Corp., Kore.ai Inc., Meta Platforms Inc., Microsoft Corp., OpenAI L.L.C., Oracle Corp., ServiceNow Inc., and Zoom Video Communications Inc.

 

Key Market Trends Fueling Growth

Chatbots are integrated with various communication platforms, such as Microsoft Bot Connector for Skype, email, and more. The increasing use of the internet, digitalization, and mobile devices have transformed interactions between people and businesses. Facebook, owned by Meta, dominates the chatbot sector with messaging apps like Messenger and WhatsApp sending 60 billion messages daily. Banking notifications from Bank of America and food orders from Burger King are examples of bot usage. Monetization of chatbots will offer opportunities for widespread marketing and promotional content distribution. Key players in bot development include PANDORABOTS, Robot.me, KiK, and Chatfuel. The integration of chatbots with communication channels is a significant trend driving the global chatbot market’s growth. 

The chatbot market is thriving, with trends focusing on enhancing online shopping experiences. Product selections, comments, and recommendations are now powered by advanced algorithms. Nearby stores, opening hours, and contact information are easily accessible through chatbots. Upcoming products and Instacart orders can be managed with a simple chat. OpenAI’s ChatGPT technology and AI language tools offer conversational experiences across messaging channels and social networking sites. Generative models like GPT-4 and Natural Language Processing (NLP) technology drive self-learning chatbots. Customer intent is accurately identified using Supervised ML and NLP technology. Chatbot solutions cater to various industries, including IT and ITeS, with audio/voice bots also gaining popularity. APIs and AI advancements continue to fuel innovation in this dynamic industry. 

Discover a Comprehensive 360° Market Analysis: Understand the Impact of AI. For detailed information- Request Sample!

Market Challenges

The chatbot market faces significant challenges, including low awareness and standardization of chatbot services in various sectors and countries, particularly in developing nations like Brazil and India. These regions lack sufficient IT infrastructure and have limited vendor penetration, hindering the adoption of advanced technologies such as chatbots. Furthermore, concerns regarding chatbot security, including privacy and data protection, pose a threat to market growth. Despite these challenges, untapped markets in various sectors present significant opportunities for chatbot vendors. However, penetrating these markets requires overcoming resource constraints and addressing the lack of IT infrastructure, which can be difficult. Overall, the lack of awareness and standardization in the chatbot market may hinder revenue growth during the forecast period.The Chatbot Market is witnessing significant growth in various industries including Telecom and Healthcare. However, implementing AI chatbots comes with challenges. In Customer Service, integrating chatbots with Artificial Intelligence technology, Natural Language Processing, and Messaging facilities can be complex. Open AI chatbots for Financial Organizations, Grocery Outlets, and other businesses require careful consideration. Standalone and Website chatbots must offer Voice Recognition and seamless Chatbot Interface. Consumer Analytics and AI software applications are essential for prompt relevant answers to user queries. Market requirements demand user-friendly experiences, actionable insights, and integration with messenger applications. Enterprises face challenges in providing correct information around the clock, as customer service employees have working hour limitations. Chatbots can help with leads, in-store purchases, mobile alerts, and updates, but they must be able to understand user intent and provide instant service to enhance the customer experience. Key players include WhatsApp, WeChat, and Facebook Messenger.

For more insights on driver and challenges – Download a Sample Report

Segment Overview 

This chatbot market report extensively covers market segmentation by

End-user 1.1 Retail1.2 BFSI1.3 Government1.4 Travel and hospitality1.5 OthersProduct 2.1 Solutions2.2 ServicesGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 Retail- The chatbot market is experiencing significant growth as businesses seek to enhance customer engagement and streamline operations. Chatbots provide automated, 24/7 support, reducing response time and improving customer satisfaction. They can handle routine inquiries, freeing up human agents for more complex issues. Integration with CRM systems allows for personalized interactions and data analysis. Chatbots offer cost savings and increased efficiency, making them an essential tool for modern businesses.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022) – Download a Sample Report

Research Analysis

The chatbot market is experiencing significant growth due to advancements in generative models and natural language processing (NLP) technology. GPT-4, a new generation of language models, is revolutionizing the way chatbots understand and respond to user queries. Self-learning chatbots are becoming increasingly popular, enabling them to improve their responses over time. These AI-powered bots are being adopted by various industries, including financial organizations and grocery outlets, for customer service activities. Messaging facilities have become essential touchpoints for consumer analytics, and chatbots, as open AI software applications, are at the forefront of this trend. Virtual assistants powered by artificial intelligence and NLP are providing prompt relevant answers to user intents, enhancing the overall customer experience. APIs allow for seamless integration of these chatbots into existing systems, making them an indispensable tool for businesses.

Market Research Overview

The chatbot market is experiencing significant growth due to advancements in generative models and natural language processing (NLP) technology. GPT-4, a new AI model, is revolutionizing conversational experiences by understanding context and generating human-like responses. Self-learning chatbots and supervised machine learning algorithms are enabling more accurate customer intent recognition. Chatbot solutions are being adopted across various industries, including IT and ITeS, telecom, healthcare, financial organizations, grocery outlets, and more. Messaging facilities on messaging applications like WhatsApp, WeChat, and Facebook Messenger are driving the demand for chatbots. Customer service activities are being automated with AI chatbots, enabling instant service and reducing the workload on customer service employees. Audio/voice bots and SMS chatbots are also gaining popularity, providing convenience to customers. Chatbot developers are leveraging consumer analytics and recommendation algorithms to offer personalized experiences and actionable insights. AI and NLP software applications are being integrated into virtual assistants to enhance user experience and prompt relevant answers to customer queries. Market requirements are shifting towards more advanced chatbot solutions, including standalone chatbots, website chatbots, and chatbot APIs. Enterprises are using chatbots for leads, in-store purchases, mobile alerts, updates, and more. Organizations are leveraging chatbots to improve customer experience touchpoints, understand user intent, and provide correct information to customers. Chatbot solutions are being integrated with messaging channels, messaging services, and social networking sites to expand reach and engagement.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userRetailBFSIGovernmentTravel And HospitalityOthersProductSolutionsServicesGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Technology

AI-Powered Earbuds Transforming North American Smart Offices: Exclusive Insights from viaim CPO at CES 2025

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LAS VEGAS, Jan. 10, 2025 /PRNewswire/ — At CES 2025 in Las Vegas, Liu Da, Chief Product Officer (CPO) of viaim, an AI technology hardware company deeply rooted in the smart office sector, gave an exclusive interview, sharing valuable insights into viaim’s exploration of the field of AI-powered earbuds, its innovative product concepts, and how the technology addresses common workplace challenges in North America. Mr. Liu also delved into the market potential of AI-powered earbuds and viaim’s strategic blueprint for shaping the future of smart offices, especially in the North American market.

North American business professionals have widely embraced remote and hybrid work models. The rise of multilingual communication has fostered a highly digitalized consumer landscape with diverse user needs, particularly for smart office solutions. In response, viaim is dedicated to developing practical AI solutions that alleviate repetitive and tiring office tasks. By addressing the evolving demands of North American professionals with its AI-driven innovations, viaim is advancing its global mission to transform work efficiency and productivity.

Unique advantages of AI-powered smart earbuds

In the interview, Mr. Liu said earbuds, being close to the user’s senses, are seamlessly integrated into daily life and serve as an ideal platform for AI technology. Unlike traditional office hardware, AI-powered earbuds are portable and versatile, fitting various scenarios such as remote meetings, commuting, and entertainment. He highlighted that viaim’s AI-powered smart office solutions position the Company to bridge the gap between people and devices, transforming earbuds from simple audio tools into smart office partners. 

viaim’s technology and design challenges during the R&D  phase

Mr. Liu detailed the challenges the Company faced during the R&D phase, including integrating AI computing power, storage, and sensors into earbuds with limited space while maintaining portability and battery life. He also highlighted the difficulty of balancing human auditory sensitivity with machine signal processing to ensure a natural user experience. To tackle these challenges, viaim employed multi-terminal collaboration, integrating earbuds, apps, and cloud services to ensure seamless voice processing and secure data management tailored to the needs of North American professionals.

Market potential, insights, and positioning in North America

A report from Upwork, the world’s largest work marketplace, projects 36.2 million Americans will work remotely in 2025, marking an 87% increase from pre-pandemic levels. AI-powered earbuds, with capabilities including meeting recording and follow-up task management, cater to the digitalized and multilingual North American market. As remote and hybrid work rises, AI earbuds are becoming vital for workplace efficiency and language learning. viaim stands out with a competitive strategy focused on technological innovation and market segmentation, offering unique value beyond traditional earbud brands.

Future strategy and product vision

Mr. Liu believes technology’s true value lies in solving real-world problems. “When users actively engage with our AI solutions, it demonstrates their true value,” he stated. AI earbuds remain the Company’s core focus, empowering professionals to shift their attention from routine tasks to meaningful creative endeavors. Looking ahead, viaim plans to expand its product lineup to include smart glasses and office accessories, creating a comprehensive AI office ecosystem. The Company aims to rapidly iterate based on user feedback, expanding AI earbuds from niche to mass markets and advancing industry development.

Media Contact: 

Qian Wang
+86-15321782927
wangqian@vision-intelligence.tech

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Steller Unveils Group Trip Planning

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KIRKLAND, Wash., Jan. 10, 2025 /PRNewswire/ — Steller, a video-based, travel planning platform that allows travelers to discover, connect and book based on experiences shared by creators, introduced its most requested feature yet: group trip collaboration. The feature transforms how travelers plan group trips by consolidating everything—discovery, communication, organized planning, and booking—into one platform. 

Steller launches group trip planning, streamlining discovery, communication, and booking into one collaborative platform.

Traditional Trip planning involves multiple surfaces and when traveling with others, multiple communication channels. It is difficult to stay organized when communication is spread across text messages, social DMs, email, etc.  

Steller’s new collaboration feature eliminates communication chaos and streamlines trip planning by offering a central group hub for organizing every piece of the process. Travelers can invite others to join their Trip itinerary, keeping communication, discovery, and booking in one place. With Steller’s library of more than 30 million pieces of user generated travel content, groups can share videos of activities, dining spots, attractions, add notes, and co-create custom itineraries. Flexible itinerary views—list, map, and video—give everyone a complete picture of the plan to share and edit with their travel companions.

“Collaborative trip planning has been a top request from our community.  When we launched Trips by Steller   last January, we knew it would resonate, but the response has far exceeded expectations. In a short time, over 50,000 users have planned and booked trips by incorporating their favorite user-generated travel videos into personalized itineraries. For our destination clients,  Trips by Steller has seamlessly connected travel influencer marketing to planning and commerce. Steller clients see more than 18% of viewers who engage with their influencer campaigns planning trips to their destination—a result that sets a high bar in the travel industry. Adding collaboration to the mix amplifies that impact, inspiring more people to explore, engage and transact together!” said Pete Bryant, CEO of Steller. 

How It Works  

Whether it’s a getaway for two or a large group adventure, collaboration makes organizing travel plans easy with an all-in-one solution. 

Build Your Itinerary Together: Group members can contribute by adding things to do, activities, and notes.Stay Organized: Add notes and structure by day, activity, or group to eliminate confusion.Flexible Views: View your itinerary as a detailed list, on a map, or through video for a fully customizable planning experience.Real-Time Updates: Keep track of changes, additions, and edits made by group members.On-the-Go Access: Everyone can access the itinerary on their phone.

Steller continues to lead the charge in innovative travel planning, ensuring that its platform evolves based on user feedback. Collaborative trip planning is the latest step in its mission to evolve travel. 

About Steller 

Steller, headquartered in Kirkland, Wash., is the market leading travel planning platform that guides travelers from inspiration to planning and booking through authentic experiences of their favorite creators. Steller’s patent pending platform distributes millions of pieces of bespoke, worldwide video content that can be found and booked on the Steller app. Learn more at www.steller.co  and  stellerforbusiness.com

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RAAPID Raises Series A from M12, Microsoft’s Venture Fund to Scale Next-Generation Healthcare Risk Adjustment

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Company reports 300% revenue growth in 2024 and advances partnerships with nation’s leading health systems

LOUISVILLE, Ky., Jan. 10, 2025 /PRNewswire/ — RAAPID, the industry-leading healthcare AI company, announced today a significant Series A investment from M12, Microsoft’s venture fund. This strategic funding positions RAAPID to expand its groundbreaking Neuro-symbolic AI platform that is reshaping healthcare risk adjustment.

RAAPID’s explosive growth – marked by a 300% revenue increase in 2024 – demonstrates the market’s strong validation of its advanced technology platform. The company has quickly established itself as a trusted partner for major health plans and provider., At the core of RAAPID’s success is its pioneering VisionAI technology, which tackles one of healthcare’s most pressing challenges: making sense of unstructured medical data. While over 70% of medical records exist as unstructured data when shared outside EHRs, RAAPID’s AI engine transforms this complex information into actionable insights, enabling unprecedented accuracy in risk capture and care gap identification.

“Our vision extends beyond traditional risk adjustment,” states Chetan Parikh, Founder and CEO of RAAPID. “We’re creating a future where AI augments healthcare professionals’ capabilities, leading to better patient outcomes and more accurate appropriate reimbursements. This investment from M12 accelerates our mission to transform healthcare through advanced AI.”

RAAPID’s purpose-built Risk Adjustment platform has achieved remarkable results:

Slashing chart review time by 60-80%Surpassing industry standards with 95%+ coding accuracyGenerating additional appropriate and compliant revenue per memberImproving risk capture accuracy by 25%

The HITRUST-certified platform stands out for its unique Neuro-symbolic AI approach, combining neural networks with an extensive medical knowledge graph containing over 4 million clinical entities and 50 million relationships. This sophisticated technology enables both retrospective analysis and prospective risk adjustment, helping organizations identify and address care gaps to positively impact patient health.

“Healthcare organizations are increasingly seeking innovative solutions to manage risk and improve care delivery in value-based arrangements,” said Todd Graham, Managing Partner at M12. “RAAPID’s AI-driven risk adjustment platform aligns perfectly with our investment strategy. Through M12, we are committed to providing our portfolio companies with access to Microsoft’s resources and expertise to drive significant impact in the healthcare sector.

Led by a team with over 25 years of healthcare technology expertise, RAAPID has collaborated with experts from the top 4 tech giants in developing its clinical AI solutions. RAAPID continues to push the safe boundaries of what’s possible in healthcare AI. The company’s selection as an M12 portfolio company validates its position as a leader in healthcare technology innovation.

As value-based care becomes increasingly important, RAAPID’s AI-powered solutions are becoming essential tools for healthcare organizations striving to improve timeliness and quality of care all patients expect. With this new funding, RAAPID is poised to further advance its technology and expand its positive impact on patients, providers and payers.

About RAAPID
RAAPID develops AI-powered solutions for healthcare payers, providers, and supporting organizations. The company’s cloud-based risk adjustment platform uses neuro-symbolic AI to identify chronic conditions, determine HCC codes, calculate risk scores, and analyze population health trends. RAAPID serves organizations that participate in Medicare Advantage, ACA, Medicare ACO, and Medicaid programs.

For more information about RAAPID’s AI-powered risk adjustment solutions, visit www.raapidinc.com

CONTACT:
Mayur Vyas
(502) 699-3044
388583@email4pr.com

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