Call Center AI Market Size, Share, and Trends 2024 to 2034

Call Center AI Market Size and Manufacturers

The global call center AI market size reached USD 2.13 billion in 2022 and it is projected to hit around USD 17.05 billion by 2032, expanding at a CAGR of 23.12% over the forecast period from 2023 to 2032.

Key Takeaways:

• North America generated more than 42% of the revenue share in 2022.
• By component, the services segment is expected to witness a significant pace of growth during the forecast period.
• By deployment, the on-premises segment is expected to maintain its position in the market. The cloud deployment segment is expected to register the fastest growth during the forecast period.
• By application, the predictive call routing segment is expected to hold the largest share among other application segments during the forecast period.
• By enterprises, the large-scale enterprises segment leads the global call center AI market, the small and medium-scale enterprises segment will grow at a significant rate.
• By end-user industry, the retail and e-commerce segment is expected to hold a significant share of the market during the forecast period. The BFSI segment currently leads the market.

Call Center AI Market Overview:

Being the essential component in modern operations, artificial intelligence is on its way to transforming the call center industry with its conversational capabilities. Multiple industries, including healthcare, IT and telecommunication, energy, retail, and many others, are adopting artificial intelligence to advance conversational abilities. The algorithms of artificial intelligence in call centers are capable of offering services more effectively without any human interventions.

The global call center AI market revolves around developing and offering artificial intelligence-based solutions such as generative adversarial networks (GAN) and pre-trained large-scale models to generate a particular yet unique pattern for the existing data. Such models and algorithms of AI have generalization capabilities for typical operations associated with call centers.

An Indian telecom company, Airtel, stated in 2023 that it currently manages 84% of calls at contact centers with automated speech recognition algorithms. Airtel has adopted Nvidia’s conversational AI toolkit ‘NvidiaNeMo’ in order to develop specialized speech applications.

According to Gartner, AI chatbots are capable of saving $80 billion in labor costs per year by 2026 in the call center industry. The same report estimated that the number of interactions between call centers and consumers with the help of artificial intelligence will boost from 2% in 2022 to more than 15% by 2026.

Growth Factors:

The global call center artificial intelligence market is expected to grow substantially during the forecast period owing to the rising focus on maximizing brand efficiency by multiple end-user industries. In addition, to build brand image, many organizations and end-user industries are focusing on high-fidelity interactions; this requirement is mainly observed to gain from the e-commerce industry. Artificial intelligence offers fidelity along with improved speech recognition accuracy.

According to McKinsey’s report in 2022, the adoption of artificial intelligence has doubled since 2017. The rising requirements for computer vision, deep learning, physical robotics, and overall automation in organizations are observed to act as a growth factor for the call center AI market. Moreover, the global call center AI market is expected to grow with factors such as cost-effectiveness, the requirement for time-efficient solutions, increased sales and engagement, and rising demand for substitute human agents.

Call Center AI Market Scope

Call Center AI Market Dynamics:

Driver:

Rising demand for AI-based solutions from the e-commerce industry

E-commerce companies generally carry a large volume of data for customer interactions, including inquiries, order tracking, returns, and support. Managing these interactions efficiently and providing timely assistance is crucial for customer satisfaction. AI-powered solutions such as chatbots can manage a large number of inquiries simultaneously, providing quick and accurate responses, and thereby enhancing customer experience. Moreover, e-commerce businesses often seek to offer 24/7 services for different time zones across the globe. Human agents in call centers somehow fail while offering such services. Whereas AI-powered chatbots are capable of providing 24/7 services. This leads to improved consumer satisfaction. The rising demand from the e-commerce sector acts as a driving force for the adoption of AI in call centers to meet customer expectations, enhance operational efficiency, and gain a competitive advantage.

Restraint:

Linguistic concerns

Concerns about languages become a significant restraint for the conversational AI platform; this can hinder the growth of the market for call center AI. It becomes challenging to ensure the accuracy and reliability of the language generated by artificial intelligence systems. This issue may cause errors or miscommunication/misunderstandings between the consumer and the service provider. The challenges with language may negatively affect the quality of the customer experience.

Most conversational AI platforms used in call centers generate solutions in limited standard languages. This element limits the service provider from offering personalized solutions to consumers in native or preferred languages. The development of multilingual AI platforms with the availability of customized language solutions for consumers is observed to address this restraint.

Opportunity:

Development of AI-based self-service at call centers

The continuous advancements in artificial intelligence solutions have already offered multiple opportunities for the market’s growth. In the upcoming period, the availability of self-service for consumers at call centers along with personalized solutions is observed to offer a plethora of growth opportunities for the market’s growth. AI-powered virtual assistants or chatbots can provide personalized self-service options to customers. By leveraging customer data, these AI systems can offer customized recommendations, product suggestions, and troubleshooting steps. This reduces the need for customers to wait for an agent and empowers them to find solutions independently, enhancing customer satisfaction and freeing up agents' time for more complex inquiries.

Component Insights:

The solutions segment is expected to continue its growth trend during the forecast period. The growth of the solutions segment in the call center AI market revolves around various factors, including the quality and effectiveness of the solutions, their integration capabilities, ease of implementation, and the overall return on investment they provide.

On the other hand, the services segment is predicted to grow at a significant rate during the forecast period. The service segment provides training and support services to call centers to ensure the effective utilization of AI technologies. This includes training call center staff on using AI systems, guiding them on best practices, and providing ongoing technical support. Service providers assist call centers in optimizing AI performance, troubleshooting issues, and continuously improving AI-powered solutions.

Deployment Insights:

The on-premises segment is expected to remain competitive in the market during the forecast period. The flexibility and usability criteria of on-premises deployment of AI in call centers has promoted the segment’s growth. Call centers often handle sensitive customer information, and organizations may have strict data security and privacy policies. On-premises deployment allows call centers to have complete control over their data, reducing the risk of data breaches or unauthorized access.

On the other hand, the cloud deployment segment is expected to register the fastest growth during the forecast period. Cloud deployment eliminates the need for upfront investment in expensive hardware and infrastructure. Cloud-based AI solutions enable call center agents to access the system from anywhere, facilitating remote work capabilities.

In March 2022, Google announced its investment in the expansion of contact center AI with the launch of cloud contact center AI services platform. This platform aims to offer best-in-class customer services through the critical touchpoint of contact centers.

Application Insights:

The predictive call routing segment is expected to hold the largest share of the market during the forecast period. By analyzing customer data and using machine learning algorithms, predictive call routing can accurately match customers with the most qualified agents. This reduces the need for call transfers or escalations, streamlines issue resolution, and ultimately improves first-call resolution rates.

Owing to its ability to enhance customer experience, improve first call resolution, optimize resource utilization, deliver cost savings, and adapt in real-time, predictive call routing has emerged as a dominant segment within the call center AI market.

Enterprises Insights:

The large-scale enterprises segment dominated the market in 2022, large-scale call centers handle a high volume of customer interactions on a daily basis. AI solutions can help optimize costs by automating repetitive and routine tasks, reducing the number of agents required to handle basic inquiries.

The small and medium-scale enterprises segment is expected to show noticeable growth during the forecast period. The rising emphasis on improved efficiency in small and medium-scale organizations is promoting the segment’s growth. AI solutions enable small-scale call centers to operate more efficiently and scale their operations as needed. AI-powered tools can streamline call routing, prioritize urgent calls, and automate data entry and retrieval processes.

End-User Industry Insights:

The BFSI segment holds the largest share of the market. BFSI call centers generate a vast amount of customer data during interactions. AI-powered analytics tools can process this data to extract valuable insights and identify trends. These insights can be used to optimize business processes, improve customer service strategies, and make data-driven decisions.

Moreover, the enormous demand for fraud detection solutions in the banking industry promotes the application of artificial intelligence systems in BFSI industry by highlighting the growth of the segment.

On the other hand, the retail and e-commerce segment is expected to grow at the fastest rate during the forecast period. Retail and e-commerce companies often experience high call volumes, especially during peak seasons, sales, or promotional events. AI-powered virtual agents and chatbots can handle a significant portion of these inquiries, reducing the burden on human agents and ensuring faster response times for customers.

Furthermore, the IT and telecommunication segment is growing at a significant rate during the predicted timeframe. The continuous requirements for issue resolution systems, knowledge-based management and 24/7 support system for IT and telecommunication industry promote the growth of the segment. AI-powered virtual agents and chatbots can assist in providing initial troubleshooting support, guiding customers through basic issue resolution steps, and identifying common problems.

Regional Insights:

North America dominates the global call center AI market; the region will continue to maintain its growth throughout the forecast period. Being at the forefront of technologies, North America has rapidly adopted artificial intelligence-based solutions. Call centers in North America often face high call volumes, which can be overwhelming for human agents to handle efficiently. AI solutions, such as chatbots and virtual assistants, help alleviate this burden by automating routine inquiries and providing quick responses, reducing customer wait times, and improving overall call center efficiency.

Several administrations in North American countries are actively participating in the adoption of automated solutions for efficient operations. This is also observed to boost the adoption of artificial intelligence solutions for call centers.

In May 2023, Arlington County, United States, stated that it would use an automated system Amazon Web Services developed to answer non-emergency public safety calls. It will provide more efficient and faster responses to queries with multilingual options.

Moreover, the substantial consumer base for online shopping in the region is considered a significant factor in the growth of the market in North America. The demand for AI solutions in call centers in North America stems from the need to improve efficiency, reduce costs, enhance the customer experience, and gain a competitive advantage in a rapidly evolving business landscape.

Asia Pacific is expected to witness the fastest growth rate during the forecast period. Asia is home to large enterprises as well as startups and growing businesses. AI solutions offer scalability, allowing call centers to handle fluctuations in call volumes and scale their operations according to business needs. This scalability ensures that call centers can effectively manage customer demand while maintaining service quality.

The booming e-commerce market in the region is another factor for the market’s growth. The rising number of online shopping has raised the request for customer service, which is observed to pave the way for adopting artificial intelligence for call centers in retail and e-commerce.

Multiple industries/companies are integrating generative artificial intelligence solutions to enhance consumer satisfaction. In April 2023, a provider of artificial intelligence-based solutions for consumer engagement, Infobird Co. Ltd, announced that it had integrated ChatGPT to upgrade its AI customer service system in China. The system’s model is integrated with the existing intelligent customer service robot.

Recent Developments:

• In May 2023, Zoom announced its partnership with an AI chatbot safety company Anthropic along with a significant investment to bring generative AI technology. Zoom is planning to launch Anthropic’s virtual AI assistant onto its platform starting with Zoom Contact Center.
• In May 2023, a Japan-based IT and telecom operator, SoftBank Corp announced the launch of its artificial intelligence (AI) chat service for company’s use. According to SoftBank’s statement, the generative AI service will be available for all employees for internal use.
• In May 2023, Hyundai Home Shopping Network Corporation announced the launch of the operations with artificial intelligence services at its call centers. The newly launched operations with artificial intelligence solutions at the call centers aim to respond to simple queries of customers.
• In July 2022, a leader in offering AI and automation services for call centers, Laivly announced the launch of its attended AI platform. The newly launched AI platform aims to offer modern solutions for call centers. This will result in achieving faster and more accurate solutions from call centers.

Call Center AI Market Companies

The global call center AI market is fragmented with multiple small scale and large-scale companies that contribute to the development of the market, a few of these leading key players are-

• IBM
• Bright Pattern
• SAP
• Oracle
• Avaya
• Jio Haptik Technologies
• SMartAction LLC
• Zendesk
• NICE

Segments Covered in the Report:

By Component

• Services
• Solutions
• Managed Services

By Deployment

• Cloud
• On-premises

By Application

• Predictive Call Routing
• Sentiment Analysis
• Workforce Management
• Journey Orchestration
• Quality Management
• Others

By Enterprises

• Large Scale
• Small & Medium Scale

By End-User Industry

• IT & Telecommunication
• Healthcare
• Retain & E-commerce
• Energy & Utilities
• BFSI
• Travels and Hospitality
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa