A new report from VynZ Research predicts that the market for conversational AI tech will climb to $16.2 billion between 2019 and 2024. That figure represents a CAGR of 29.2 percent for the time period in question.
Conversational AI can be used for a wide range of purposes, including onboarding and customer support, though VynZ expects personal assistant applications to display the most growth in the next few years. The research firm also expects to see considerable demand for machine learning tech that will allow conversational solutions to learn from people’s prior behavior and tailor their responses to better serve individual users.
The report goes on to explain that cloud deployments have been and will continue to be more common than on-premises deployments. Chat bots, meanwhile, are currently more popular than more complex interactive voice response systems.
North America is the largest segment of the conversational AI market, which VynZ attributes to the high concentration of industry leaders in the region. The roster of companies exploring conversational AI tech includes tech titans like Google, Amazon, and Microsoft, as well as leading industry specialists like Nuance Communications.
Previous reports from Grand View Research and Fortune Business Insights have estimated that the overall voice recognition market will reach something close $30 billion in the same forecast period. Those reports are slightly more all-encompassing and include technologies that may fall outside the more limited conversational AI window, but there is nevertheless quite a bit of overlap in terms of the key players and applications.
Nuance’s tech has been used to develop conversational tech for smart cars, healthcare, and financial call centers, while companies like Apple and Google have leveraged it to improve the utility of smart speakers and other devices.
Meanwhile, Nuance’s automotive division was recently spun off as an independent corporate entity.