The global call center AI market size was estimated at around USD 1.42 billion in 2022 and it is projected to hit around USD 11.38 billion by 2032, growing at a CAGR of 23.14% from 2023 to 2032. The call center AI market in the United States was accounted for USD 319.1 million in 2022.
Report Scope of the Call Center AI Market
|Revenue Share of North America in 2022||40%|
|Revenue Forecast by 2032||USD 11.38 billion|
|Growth Rate from 2023 to 2032||CAGR of 23.14%|
|Forecast Period||2023 to 2032|
|Market Analysis (Terms Used)||Value (US$ Million/Billion) or (Volume/Units)|
|Companies Covered||IBM; NICE; Zendesk; Bright Pattern; SmartAction LLC; Artificial Solutions; SAP; Oracle; Avaya Inc.; Jio Haptik Technologies Limited|
The increasing demand for quality customer services is likely to drive the adoption of AI-centric solutions to improve call center practices. Businesses are also trying to improve customer relationships by offering omnichannel engagement platforms and providing better customer service. The above trend of transitioning to new call center AI solutions from traditional business operations offers promising growth opportunities for the call center artificial intelligence (AI) market.
The rise of the global market has been spurred by the emergence of numerous innovative technologies driven by COVID-19. Developments in control compliance suite (CCSBot), omnichannel solutions, and quality assurance technology contribute to the increasing adoption of call center AI. Service providers offer advanced call center solutions that deliver a consistent customer experience across all channels to enhance customer engagement. AI in call centers is likely to provide a hyper-personalized customer experience that would fuel market growth.
The ever-growing penetration of social media platforms offers call center AI service providers lucrative opportunities. Predictive call routing, interactive voice response (IVR), call analytics, emotional intelligence, and conversational AI are some of the trending applications of AI in the call center software industry. Call centers can deploy AI-based chatbots to interact with customers via social media platforms. This facilitates people to get in touch with call center agents according to their convenience and get suitable responses to their queries from AI models.
The solutions segment accounted for the largest revenue share of above 76% in 2022. The significant share can be attributed to the widespread use of chatbots, voice analysis software, and IVAs in many processes. Voice analysis software records the call center interaction and converts it into text transcripts. Speech analytics analyzes transcripts to interpret common themes in the call, which records keywords and monitors agent performance.
Call center AI solutions allow financial institutions to interact with and improve customer experience, ideally reducing response time and increasing overall efficiency.For instance, in May 2023, Zoom Video Communications, Inc. announced a partnership with Anthropic PBC to deploy a generative AI model in Zoom’s call center portfolio.
Demand for enhanced customer support services in retail, telecommunications, banking, healthcare, financial services, and insurance sectors is expected to fuel the growth of the market for call center artificial intelligence. Implementing AI-based software and bots in a call center is likely to improve issue-handling processes and engage an agent's attention and excitement to work in a hectic atmosphere. It assists the service provider in reducing workload by delegating basic tasks. Furthermore, AI algorithms prefill data in the ticketing tool while documenting a ticket using memories.
The predictive call routing segment accounted for the largest market share of over 25% in 2022. The rising demand for emotion detection through speech to analyze the emotional states of callers is one of the significant factors influencing the market. Emotional AI is likely to emerge as a prominent trend in the global market. Sentiment analysis, a sub-segment of emotional AI, is likely to emerge as the fastest-growing technological trend in the call center AI market.
For instance, in January 2021, Uniphore acquired Emotion Research Lab. This software-providing company uses artificial intelligence (AI) and machine learning (ML) technology to analyze human behavior using facial emotion recognition over video calls. Through this acquisition, Uniphore’s platform will use machine learning (ML), AI, and automation to analyze extracts and make recommendations based on real-time data not only of what is being said but also of a person's facial expression and eye movement.
Rising demand for AI-powered omnichannel delivery, lower chatbot development costs, and customer support services are the major factors influencing the growth of the conversational AI market. Furthermore, the increasing adoption of AI-powered chatbots that stay connected and notified during COVID-19, as well as the increased focus on customer engagement, are significant factors driving the value of conversational AI offerings, which are projected to provide opportunities for businesses in various industries in this space.
The primary obstacles in the conversational Al industry are the lack of accuracy in virtual assistants and chatbots and preserving business continuity during the COVID-19 pandemic. Furthermore, the lack of awareness regarding conversational AI solutions and the inability to identify consumer intent and respond effectively are major market restraints.
The on-premises segment dominated the market with around 56% of the revenue share in 2022. On-premises deployment of AI solutions and services allows enterprises and corporations to customize and implement AI models. The on-premises deployment also enables companies to ensure efficient safety and security practices regarding consumer data, thus improving the system's security and offering a more secure ecosystem to deal with it. On-premises call center AI solutions are deployed more extensively by small and medium enterprises, owing to ease in deployment and control offered by on-premises systems, thus offering promising growth opportunities for the industry.
Based on deployment, the cloud segment is projected to have the largest market share during the forecast period. The cloud segment is growing rapidly because interactive voice response (IVR) solutions for quickly resolving queries over phone calls are becoming increasingly popular. Customers can use software to resolve product-related issues instead of calling customer service. Furthermore, increased workplace integration of new systems with existing ones and a rapid increase in demand for the implementation of new call center software are expected to fuel the growth of this segment.
Enterprise Size Insights
The large enterprise segment dominated the market with a revenue share of above 77% in 2022. Companies have accepted the usage of call center software, which has several advantages, including cost-effectiveness, increased sales deals, identifying urgent calls, boosting security, auto-recording, and more. Auto-recording allows an agent's cumulative performance calculation over time and provides feedback as needed for performance measurement. In the event of a call-related dispute, listening to the recording can help one decide what course of action to take. The above factors are expected to boost demand for call center software in large enterprises.
The small and medium enterprise segment is expected to grow significantly between 2023 and 2032. Adopting call center software has benefited many global organizations and small and medium-sized businesses, and call center software is now required at every business level. For instance, ‘Zendesk Talk’ is a prominent software for SMEs. This software aims to improve the overall support process while avoiding unnecessary tasks so that employees can concentrate on solutions, conversations, and other critical missions. Thus, agents will have access to the entire customer history as well as extra features such as automatic ticket creation and call recording.
The BFSI segment captured the highest revenue share of above 24% in 2022. Implementing AI solutions in the banking ecosystem augments the quality and efficiency of call center interactions, thus enabling banks to offer better customer services. The ability of banking applications on mobile phones to contact call center agents according to customer needs is prompting banking institutions to deploy AI voice assistants and AI chatbots. This helps them prioritize customer queries, thus reducing the workload of call center agents and aiding them in focusing on more critical customer queries.
The industry segment has been sub-segmented into retail, healthcare, IT & telecom, media & entertainment, etc. The retail segment captured a significant revenue share in 2022 and is expected to dominate over the forecast period. The rapid emergence of the retail industry has further aided in the growth of the global call center AI market. This can be accredited to the need of customers to understand several aspects related to product specifications, order placement, and other queries related to payments, replacements, and refunds.
The phone segment accounted for the largest market share of over 44% in 2022. AI tools, such as emotional intelligence, recommend customer service representatives during a call. Call center technology providers could integrate sentiment analysis to understand a consumer's requirements, suggesting relevant suggestions to customers. Robust interactive voice response technology delivers the ability to handle multiple call center locations. Additionally, CRM and UCaaS integrations are most likely to be integrated with IVR solutions that would contribute to market growth.
The chat segment is expected to register the highest CAGR during the forecast period. Video chat and automated chats are becoming leading call center technologies. Moreover, social media is likely to gain traction in the coming years, and AI can create social media posts and draft and target social ads. Additionally, it automates monitoring and handles customer queries. Due to the increasing social media network, AI usage has significantly reduced human costs and quickened processes. It has become imperative for companies to upgrade the way consumers reach and address their queries on social media platforms.
North America dominated the global market in 2022 with a revenue share of above 40%. The dominant revenue share can be accredited to the highly functional e-commerce industry in the region, which offers growth opportunities for deploying AI-specific call center solutions. The rapid development of AI-based technology solutions in the U.S., owing to favorable government initiatives, also provides a conducive ecosystem for the growth of the regional call center artificial intelligence market.
The presence of several global leaders in the market, such as IBM Corporation, Google Inc., and Microsoft Corporation, offers companies several buying options, which is likely to expand the market size. For instance, in March 2023, Cognigy, a prominent name in the conversational AI technology space, announced a collaboration with Foundever, a U.S.-based customer experience solution provider. The partnership aimed at combining Cognigy’s Conversational AI platform with Foundever’s advanced CX solutions that accelerate the digital transformation of call centers.
During the forecast period, Asia-Pacific is expected to have the highest growth rate in the market. Massive investments in call center solutions by countries such as China, Japan, India, and the Philippines are fueling market growth. Market expansion in the region is likely to accelerate in the post-COVID-19 period. India and the Philippines are poised to emerge as the preferred countries for setting up call centers. Companies including GE, Bharti Telecom, British Airways, and financial giants such as American Express, ICICI, and HDFC have deployed their call centers in India for better customer support.
Call Center AI Market Segmentations:
By Enterprise Size