Call Center AI Market to Grow by USD 4.3 Billion (2024-2028), Rising Adoption of Cloud-Based Call Centers Boosting Growth, with AI Impacting Market Trends – Technavio

NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global call center artificial intelligence (AI) market size is estimated to grow by USD 4.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  27.17%  during the forecast period. Rising adoption of cloud-based call centers is driving market growth, with a trend towards integration of chatbots for better turnaround times. However, integration issues between front-end and back-end knowledge bases poses a challenge. Key market players include Alphabet Inc., Amazon.com Inc., Artificial Solutions International AB, Avaamo Inc., Avaya LLC, Conversica Inc., Creative Virtual Ltd., EdgeVerve Systems Ltd., Inbenta Holdings Inc., Jio Haptik Technologies Ltd., Kore.ai Inc., Microsoft Corp., NICE Ltd., Nuance Communications Inc., Oracle Corp., Pypestream Inc., Rulai, SAP SE, Talkdesk Inc., and Zendesk Inc..

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Market Driver

The Call Center AI market is experiencing significant growth as businesses seek to enhance customer engagement through AI technology. AI-powered chatbots and Intelligent Virtual Agents are trending, handling customer queries on social media platforms and mobile devices. Autonomous virtual agents are revolutionizing logistics and essential items sectors, while AI technology improves call center solutions with predictive call routing, interactive voice response, and call analytics. Retail sector leaders leverage AI for cross-selling and up-selling opportunities, while AI-enabled chatbots assist in technical network issues. Unsupervised self-learning and conversational AI are essential for NLP and ML-driven solutions. The market comprises solutions and services segments, with on-premises and cloud deployment options. AI platforms offer control compliance suites and omnichannel solutions, ensuring data privacy and security measures. Energy, IT and Telecom, and healthcare industries are adopting AI for quality assurance technology and emotional intelligence. Data analytics skills are crucial for implementing AI platforms, while cloud computing services streamline contact center operations. Despite advancements, challenges persist, including data breaches and hacking concerns, requiring ongoing privacy impact assessments and security measures. 

Call centers are essential for providing customer service, but delays in resolving queries can lead to customer dissatisfaction and potential loss of business. To address this issue, call centers are integrating Artificial Intelligence (AI) in the form of chatbots. These AI tools can handle simple queries efficiently, freeing up human agents to focus on more complex issues. By providing quick and accurate responses, chatbots enhance the overall customer experience, contributing to business success. 

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Market Challenges

• The Call Center AI market is experiencing significant growth due to the increasing demand for automated customer engagement solutions. Challenges such as managing customer queries on social media platforms, delivering personalized service through chatbots and autonomous virtual agents, and addressing logistics and essential items inquiries require advanced AI technology. However, integrating AI into call centers brings new challenges, including data ownership, privacy impact assessments, and security measures for Personally Identifiable Information. Retail, IT and Telecom, Energy, and Healthcare sectors are major adopters of AI-powered chatbots and Intelligent Virtual Assistants. Solutions include predictive call routing, interactive voice response, call analytics, and emotional intelligence. The Services and Cloud Deployment segments dominate the market, with e-commerce and omnichannel solutions being key growth areas. Despite the benefits, AI implementation comes with risks such as data breaches and hacking. AI platforms must comply with control compliance suites and quality assurance technology to mitigate these risks. Cross-selling and up-selling opportunities are significant, but human sales reps and call center agents must adapt to work alongside AI technology. Historic data analysis, NLP, and ML are essential data analytics skills for AI platform models. Unsupervised self-learning and conversational AI are essential for handling complex customer queries. Cloud computing services enable scalability and cost savings. Technical network issues and AI-enabled chatbots and virtual agents require continuous monitoring and maintenance. The AI technology market is expected to grow, with the energy industry and healthcare sectors being major adopters.
• The integration of Call Center Artificial Intelligence (AI) in the form of chatbots is gaining popularity among various industries such as BFSI, telecom, healthcare, and media. However, the adoption of these advanced technologies brings about challenges related to system integration and interoperability. Vendors must offer unified IT solutions to manage these bots, ensuring seamless integration with the existing IT infrastructure of organizations. Chatbots should be integrated both at the front end and back end to provide a comprehensive solution. The integration process can be complex due to different knowledge bases used by organizations and chatbots. To avoid overlap or the creation of multiple knowledge bases, it is crucial to implement a well-planned and executed integration strategy.

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Segment Overview

This call center artificial intelligence (ai) market report extensively covers market segmentation by  

1. End-user
   • 1.1 BFSI
   • 1.2 Retail and e-commerce
   • 1.3 IT and telecom
   • 1.4 Media and entertainment
   • 1.5 Others
2. Channel
   • 2.1 Phone
   • 2.2 Chat
   • 2.3 Email or text
   • 2.4 Social media
   • 2.5 Website
3. Geography
   • 3.1 North America
   • 3.2 APAC
   • 3.3 Europe
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 BFSI-  The BFSI sector, with its large global customer base, has been an early adopter of call center AI technologies. The rise of mobile technology has facilitated authentication, detail exchange, and transaction conduct. Leading banks like Bank of America, J.P. Morgan Chase, and Capital One have integrated AI technologies to enhance customer engagement and automate operations. In the competitive financial services industry, superior customer service is vital for customer satisfaction and cost reduction. Unaddressed inquiries result in missed revenue opportunities and increased attrition. Banks utilize chatbots to support mobile apps, providing 24/7 customer service. Chatbots assist with banking activities, such as balance checking, bill payment, and fund transfers. Personal finance management (PFM) chatbots and analytics enable users to plan savings goals and optimize spending. AI predictive systems, integrated with customer accounts, analyze spending patterns and offer real-time financial advice. Chatbots simplify financial terminology, saving customers time. For instance, Cleo, a personal finance bot, uses machine learning to understand spending patterns from customer data, providing personalized insights. These factors fuel the growth of the BFSI segment in the global call center AI market.

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Research Analysis

The Call Center Artificial Intelligence (AI) market is experiencing significant growth due to the increasing demand for enhanced customer engagement. AI technologies such as chatbots, autonomous virtual agents, and unsupervised self-learning are revolutionizing call centers by automating customer queries and providing 24/7 support. AI-enabled chatbots and virtual agents are becoming increasingly popular in various industries, including IT and Telecom, healthcare, e-commerce, and logistics. The Services segment and Cloud deployment segment are leading the market growth, offering flexibility and cost-effective solutions. AI is also being integrated into omnichannel solutions, quality assurance technology, and interactive voice response systems to provide seamless customer experiences. Social media platforms are also being integrated with AI to handle customer queries and complaints effectively. AI’s ability to control compliance suites and provide personalized solutions is further driving the market growth.

Market Research Overview

The Call Center Artificial Intelligence (AI) market is revolutionizing customer engagement by integrating AI technology into various call center functions. AI-powered chatbots and Intelligent Virtual Agents handle customer queries on social media platforms and mobile devices, providing instant responses and personalized assistance. Autonomous virtual agents manage logistics and essential items orders, freeing up human sales reps and call center agents for more complex tasks. Historic data analysis enables cross-selling and up-selling opportunities, while AI platforms use Natural Language Processing (NLP) and Machine Learning (ML) to understand customer needs and provide solutions. Solutions include on-premises and cloud deployment models, catering to the retail sector, IT and Telecom, energy industry, and healthcare. AI enables predictive call routing, interactive voice response, call analytics, and emotional intelligence, offering omnichannel solutions and quality assurance technology. However, data ownership, privacy impact assessments, security measures, and compliance suites are crucial considerations to ensure data protection and prevent data breaches and hacking.

Table of Contents:

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

• End-user
  • BFSI
  • Retail And E-commerce
  • IT And Telecom
  • Media And Entertainment
  • Others
• Channel
  • Phone
  • Chat
  • Email Or Text
  • Social Media
  • Website
• Geography
  • North America
  • APAC
  • Europe
  • South America
  • Middle 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.

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SOURCE Technavio