Artificial Intelligence (AI) Chatbot Market Report, Size, Share, Opportunities, And Trends By Component (Hardware, Software And Services), By Deployment (Cloud, On-Premises), By Industry Vertical (BFSI, Media & Entertainment, Education, Retail, Healthcare, Others) And By Geography - Forecasts From 2025 To 2030
- Published: June 2025
- Report Code: KSI061614383
- Pages: 149
Artificial Intelligence (AI) Chatbot Market Size:
The Artificial Intelligence (AI) Chatbot Market is expected to grow at a CAGR of 25.30%, reaching a market size of US$60.260 billion in 2030 from US$19.510 billion in 2025.
Artificial Intelligence (AI) Chatbot Market Key Highlights:
- Automation Demand Surge: AI chatbots streamline customer service, reducing costs and enhancing efficiency.
- AI Technology Advancements: Improved NLP enables more natural and secure chatbot interactions.
- Messaging App Integration: The Growing popularity of messaging platforms boosts chatbot adoption.
- Asia Pacific Growth: Increased enterprise use drives regional market expansion.
An AI chatbot is a virtual computer program powered by artificial intelligence (AI) that is made to mimic conversations with human beings through the internet. Different technologies and methods can be applied in building them, among which are natural language processing (NLP) and machine learning (ML). Different categories of chatbots exist, such as rule-based and self-learning. Rule-based chatbots require pre-defined rules in handling queries; therefore, they use explicit decision trees. On the contrary, self-learning chatbots depend on AI and ML to learn from their interactions with customers and improve their responses over time.
Companies and corporations often utilize them for automating mundane activities while enhancing customer interactions. Furthermore, they might be merged with mobile applications and messaging platforms, providing users with swift and easy entry points for data and services. For example, they integrate into e-commerce sites, supporting users through product recommendations, ordering, and tracking delivery. In addition, they also serve students with swift access to information, answer questions, and support the learning process. In the same way, they can support citizens who want information about government services, such as renewing driving licenses or paying taxes.
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Artificial Intelligence (AI) Chatbot Market Growth Drivers:
- Increasing demand for automation is anticipated to propel the market growth
AI chatbots are a cost-effective solution for customer service and other business process automation since they provide customer support at all times, thereby giving fast responses. They can handle multiple customer interactions at the same time to reduce human staff demand and save organizations' costs. They are also flexible solutions for organizations with changing customer needs because they can be adjusted up or down depending on requirements, hence increasing operational efficiency. Additionally, they can automate repetitive processes to allow human employees to handle more complex tasks instead.
Furthermore, it contributes to e-commerce by collecting data for analysis, generating leads, and enhancing customer engagement through personalized discounts or recommendations and order tracking, among others. Therefore, this urge towards automation is fueling the AI chatbot market expansion. For example, H&M applies an AI chatbot that assists clients in product selection, ordering, and shipment tracking activities. The bot also solves commonly arising questions from clients and offers directions on how to proceed with an issue.
- Advances in AI technology are anticipated to drive market growth
No other technology has advanced more in recent years than artificial intelligence, particularly in natural language processing. Nowadays, chatbots can be linked with different systems, such as websites, mobile apps, or messaging platforms, improving safety by eliminating information leakage and guaranteeing user confidentiality. Chatbots allow businesses to understand their clients’ needs, saving them money on promotions and workforces.
- Increasing use of messaging applications
This market growth is expected because messaging apps are more popular than social networking sites. There will be a significant market in the future for chatbots that work with these messaging apps. The number of application-to-person automated messages is predicted to increase dramatically because these messages can automate tasks like making hospital appointments, checking flight status, placing orders for e-commerce sites, and finding the best deals with just a single message click. People will get more accustomed to automated customer service than to the email or IVR services offered by the majority of businesses because they offer prompt solutions.
- Increased penetration of payment services using chatbots is raising their demand
They use artificial intelligence to interpret human language, enabling them to chat like humans. These programs can be plugged into messaging platforms such as Facebook Messenger, Skype, Slack, or social networks. Paypal can be integrated with an agent, enabling chatbot developers to provide payment services using messaging platforms. The potential for earning commissions from tiny charges is one of the key growth opportunities in the chatbot market.
Artificial Intelligence (AI) Chatbot Market Restraints:
- The easy availability of free chatbots is anticipated to impede market growth
A plethora of free platforms are available for creating and implementing pre-built Chatbots with predetermined rules. ChattyPeople, MEOKAY, Botsify, and other well-known platforms let companies create chatbots without knowing how to code. Consequently, small businesses that do not need to solve complex problems prefer chatbots with defined rules over chatbots with AI and NLP capabilities.
Businesses use machine-learned chatbots to keep customers engaged, even in the face of recent technological changes and the need for precise service. Since there is a 92% chance that a disgruntled customer will not return, this is an important issue for businesses. As a result, the majority of businesses still prefer complex chatbots that can cater to their clients' specific needs.
Artificial Intelligence (AI) Chatbot Market Geographical Outlook:
- Asia Pacific is witnessing exponential growth during the forecast period
Asia Pacific is anticipated to experience market expansion as large companies utilize chatbots for routine customer service responsibilities. The remarkable growth potential of chatbots in several regions can be related to their huge benefits to organizations, such as increased operational efficiency, improved customer satisfaction, and reduced operational expenses. Due to numerous factors, such as their ability to reduce business running costs, increase customer satisfaction, and enhance operational efficiency, the market for chatbots is likely to grow tremendously.
Artificial Intelligence (AI) Chatbot Market Key Developments:
- In July 2024, JPMorgan introduced an internal AI chatbot to carry out activities that research analysts usually handle. With the help of this new AI tool, data processing and analysis will be made easier, leading to more thorough and effective research support.
- In July 2024, users of Elon Musk's platform X now have the option to stop their data from being used to train the AI chatbot Grok. This feature addresses privacy concerns related to AI development by giving users more control over their data. Users can activate this setting to make sure that their data isn't used in AI training procedures.
List of Top Artificial Intelligence (AI) Chatbot Companies:
- IBM
- Nuance Communications, Inc.
- eGain Corporation
- Microsoft Corporation
- Google, Inc.
Artificial Intelligence (AI) Chatbot Market Scope:
| Report Metric | Details |
| AI Chatbot Market Size in 2025 | US$19.510 billion |
| AI Chatbot Market Size in 2030 | US$60.260 billion |
| Growth Rate | CAGR of 25.30% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2025 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in AI Chatbot Market |
|
| Customization Scope | Free report customization with purchase |
The Artificial Intelligence (AI) chatbot market is analyzed into the following segments:
- By Component
- Hardware
- Software and Services
- By Deployment
- Cloud
- On-Premises
- By Industry Vertical
- BFSI
- Media & Entertainment
- Education
- Retail
- Healthcare
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East And Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Thailand
- Taiwan
- Others
- North America
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Navigation
- Artificial Intelligence (AI) Chatbot Market Size:
- Artificial Intelligence (AI) Chatbot Market Key Highlights:
- Artificial Intelligence (AI) Chatbot Market Growth Drivers:
- Artificial Intelligence (AI) Chatbot Market Restraints:
- Artificial Intelligence (AI) Chatbot Market Geographical Outlook:
- Artificial Intelligence (AI) Chatbot Market Key Developments:
- List of Top Artificial Intelligence (AI) Chatbot Companies:
- Artificial Intelligence (AI) Chatbot Market Scope:
- Our Best-Performing Industry Reports:
Page last updated on: September 19, 2025
Frequently Asked Questions (FAQs)
The AI chatbot market is projected to reach a total market size of US$60.260 billion in 2030.
The global AI chatbot market is projected to grow at a CAGR of 25.30% over the forecast period.
AI Chatbot Market is valued at US$19.510 billion in 2025.
Increasing demand for automation is a major factor driving the AI chatbot market growth.
The Asia-Pacific (APAC) region is expected to witness significant growth in the AI chatbot market.
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base and Forecast Years Timeline
1.8. Key Benefits to the Stakeholder
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Processes
3. EXECUTIVE SUMMARY
3.1. Key Findings
3.2. CXO Perspective
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Analyst View
5. AI CHATBOT MARKET BY COMPONENT
5.1. Introduction
5.2. Hardware
5.3. Software and Services
6. AI CHATBOT MARKET BY DEPLOYMENT
6.1. Introduction
6.2. Cloud
6.3. On-Premises
7. AI CHATBOT MARKET BY INDUSTRY VERTICAL
7.1. Introduction
7.2. BFSI
7.3. Media & Entertainment
7.4. Education
7.5. Retail
7.6. Healthcare
7.7. Others
8. AI CHATBOT MARKET BY GEOGRAPHY
8.1. Introduction
8.2. North America
8.2.1. By Component
8.2.2. By Deployment
8.2.3. By Industry Vertical
8.2.4. By Country
8.2.4.1. USA
8.2.4.2. Canada
8.2.4.3. Mexico
8.3. South America
8.3.1. By Component
8.3.2. By Deployment
8.3.3. By Industry Vertical
8.3.4. By Country
8.3.4.1. Brazil
8.3.4.2. Argentina
8.3.4.3. Others
8.4. Europe
8.4.1. By Component
8.4.2. By Deployment
8.4.3. By Industry Vertical
8.4.4. By Country
8.4.4.1. Germany
8.4.4.2. France
8.4.4.3. United Kingdom
8.4.4.4. Spain
8.4.4.5. Others
8.5. Middle East and Africa
8.5.1. By Component
8.5.2. By Deployment
8.5.3. By Industry Vertical
8.5.4. By Country
8.5.4.1. Saudi Arabia
8.5.4.2. UAE
8.5.4.3. Israel
8.5.4.4. Others
8.6. Asia Pacific
8.6.1. By Component
8.6.2. By Deployment
8.6.3. By Industry Vertical
8.6.4. By Country
8.6.4.1. China
8.6.4.2. Japan
8.6.4.3. India
8.6.4.4. South Korea
8.6.4.5. Indonesia
8.6.4.6. Thailand
8.6.4.7. Taiwan
8.6.4.8. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
10.1. IBM
10.2. Nuance Communications, Inc.
10.3. eGain Corporation
10.4. Microsoft Corporation
10.5. Google, Inc. (Alphabet Inc.)
10.6. Creative Virtual Ltd.
10.7. Avaamo Inc.
10.8. Amazon Web Services, Inc.
10.9. Oracle
10.10. LiveChat, Inc.
List of Tables
Table 1: Research Assumptions
Table 2: AI Chatbot Market, Key Findings
Table 3: AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 4: AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 5: AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 6: AI Chatbot Market, By Geography, USD Billion, 2020 to 2030
Table 7: North America AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 8: North America AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 9: North America AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 10: North America AI Chatbot Market, By Country, USD Billion, 2020 to 2030
Table 11: South America AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 12: South America AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 13: South America AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 14: South America AI Chatbot Market, By Country, USD Billion, 2020 to 2030
Table 15: Europe AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 16: Europe AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 17: Europe AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 18: Europe AI Chatbot Market, By Country, USD Billion, 2020 to 2030
Table 19: Middle East and Africa AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 20: Middle East and Africa AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 21: Middle East and Africa AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 22: Middle East and Africa AI Chatbot Market, By Country, USD Billion, 2020 to 2030
Table 23: Asia Pacific AI Chatbot Market, By Component, USD Billion, 2020 to 2030
Table 24: Asia Pacific AI Chatbot Market, By Deployment, USD Billion, 2020 to 2030
Table 25: Asia Pacific AI Chatbot Market, By Industry Vertical, USD Billion, 2020 to 2030
Table 26: Asia Pacific AI Chatbot Market, By Country, USD Billion, 2020 to 2030
Table 27: AI Chatbot Market, Strategy Analysis of Major Players
Table 28: AI Chatbot Market, Mergers, Acquisitions, Agreements, and Collaborations
Table 29: AI Chatbot Market, Policies and Regulations
Table 30: IBM, Products and Services
Table 31: Nuance Communications, Inc., Products and Services
Table 32: eGain Corporation, Products and Services
Table 33: Microsoft Corporation, Products and Services
Table 34: Google, Inc. (Alphabet Inc.), Products and Services
Table 35: Creative Virtual Ltd., Products and Services
Table 36: Avaamo Inc., Products and Services
Table 37: Amazon Web Services, Inc., Products and Services
Table 38: Oracle, Products and Services
Table 39: LiveChat, Inc., Products and Services
List of Figures
Figure 1: AI Chatbot Market Size, USD Billion, 2020 to 2030
Figure 2: AI Chatbot Market Segmentation
Figure 3: Key Market Drivers Impact Analysis
Figure 4: Key Market Restraints Impact Analysis
Figure 5: Porter’s Five Forces Analysis: Bargaining Power of Suppliers
Figure 6: Porter’s Five Forces Analysis: Bargaining Power of Buyers
Figure 7: Porter’s Five Forces Analysis: Threat of New Entrants
Figure 8: Porter’s Five Forces Analysis: Threat of Substitutes
Figure 9: Porter’s Five Forces Analysis: Competitive Rivalry in the Industry
Figure 10: AI Chatbot Market, Industry Value Chain Analysis
Figure 11: AI Chatbot Market, Policies and Regulations
Figure 12: AI Chatbot Market Share (%), By Component, 2025 and 2030
Figure 13: AI Chatbot Market Attractiveness by Component, 2030
Figure 14: AI Chatbot Market, By Component, Hardware, USD Billion, 2020 to 2030
Figure 15: AI Chatbot Market, By Component, Software and Services, USD Billion, 2020 to 2030
Figure 16: AI Chatbot Market Share (%), By Deployment, 2025 and 2030
Figure 17: AI Chatbot Market Attractiveness by Deployment, 2030
Figure 18: AI Chatbot Market, By Deployment, Cloud, USD Billion, 2020 to 2030
Figure 19: AI Chatbot Market, By Deployment, On-Premises, USD Billion, 2020 to 2030
Figure 20: AI Chatbot Market Share (%), By Industry Vertical, 2025 and 2030
Figure 21: AI Chatbot Market Attractiveness by Industry Vertical, 2030
Figure 22: AI Chatbot Market, By Industry Vertical, BFSI, USD Billion, 2020 to 2030
Figure 23: AI Chatbot Market, By Industry Vertical, Media & Entertainment, USD Billion, 2020 to 2030
Figure 24: AI Chatbot Market, By Industry Vertical, Education, USD Billion, 2020 to 2030
Figure 25: AI Chatbot Market, By Industry Vertical, Retail, USD Billion, 2020 to 2030
Figure 26: AI Chatbot Market, By Industry Vertical, Healthcare, USD Billion, 2020 to 2030
Figure 27: AI Chatbot Market, By Industry Vertical, Others, USD Billion, 2020 to 2030
Figure 28: AI Chatbot Market Share (%), By Geography, 2025 and 2030
Figure 29: AI Chatbot Market Attractiveness by Geography, 2030
Figure 30: North America AI Chatbot Market, USD Billion, 2020 to 2030
Figure 31: North America AI Chatbot Market Share (%), By Country, 2025 and 2030
Figure 32: North America AI Chatbot Market Attractiveness, By Country, 2030
Figure 33: USA AI Chatbot Market, USD Billion, 2020 to 2030
Figure 34: Canada AI Chatbot Market, USD Billion, 2020 to 2030
Figure 35: Mexico AI Chatbot Market, USD Billion, 2020 to 2030
Figure 36: South America AI Chatbot Market, USD Billion, 2020 to 2030
Figure 37: South America AI Chatbot Market Share (%), By Country, 2025 and 2030
Figure 38: South America AI Chatbot Market Attractiveness, By Country, 2030
Figure 39: Brazil AI Chatbot Market, USD Billion, 2020 to 2030
Figure 40: Argentina AI Chatbot Market, USD Billion, 2020 to 2030
Figure 41: South America (Others) AI Chatbot Market, USD Billion, 2020 to 2030
Figure 42: Europe AI Chatbot Market, USD Billion, 2020 to 2030
Figure 43: Europe AI Chatbot Market Share (%), By Country, 2025 and 2030
Figure 44: Europe AI Chatbot Market Attractiveness, By Country, 2030
Figure 45: Germany AI Chatbot Market, USD Billion, 2020 to 2030
Figure 46: France AI Chatbot Market, USD Billion, 2020 to 2030
Figure 47: United Kingdom AI Chatbot Market, USD Billion, 2020 to 2030
Figure 48: Spain AI Chatbot Market, USD Billion, 2020 to 2030
Figure 49: Europe (Others) AI Chatbot Market, USD Billion, 2020 to 2030
Figure 50: Middle East and Africa AI Chatbot Market, USD Billion, 2020 to 2030
Figure 51: Middle East and Africa AI Chatbot Market Share (%), By Country, 2025 and 2030
Figure 52: Middle East and Africa AI Chatbot Market Attractiveness, By Country, 2030
Figure 53: Saudi Arabia AI Chatbot Market, USD Billion, 2020 to 2030
Figure 54: UAE AI Chatbot Market, USD Billion, 2020 to 2030
Figure 55: Israel AI Chatbot Market, USD Billion, 2020 to 2030
Figure 56: Middle East and Africa (Others) AI Chatbot Market, USD Billion, 2020 to 2030
Figure 57: Asia Pacific AI Chatbot Market, USD Billion, 2020 to 2030
Figure 58: Asia Pacific AI Chatbot Market Share (%), By Country, 2025 and 2030
Figure 59: Asia Pacific AI Chatbot Market Attractiveness, By Country, 2030
Figure 60: China AI Chatbot Market, USD Billion, 2020 to 2030
Figure 61: Japan AI Chatbot Market, USD Billion, 2020 to 2030
Figure 62: India AI Chatbot Market, USD Billion, 2020 to 2030
Figure 63: South Korea AI Chatbot Market, USD Billion, 2020 to 2030
Figure 64: Indonesia AI Chatbot Market, USD Billion, 2020 to 2030
Figure 65: Thailand AI Chatbot Market, USD Billion, 2020 to 2030
Figure 66: Taiwan AI Chatbot Market, USD Billion, 2020 to 2030
Figure 67: Asia Pacific (Others) AI Chatbot Market, USD Billion, 2020 to 2030
Figure 68: AI Chatbot Market Share, 2025
Figure 69: Competitive Dashboard
Figure 70: IBM, Financials, 2022-2024
Figure 71: Nuance Communications, Inc., Financials, 2022-2024
Figure 72: eGain Corporation, Financials, 2022-2024
Figure 73: Microsoft Corporation, Financials, 2022-2024
Figure 74: Google, Inc. (Alphabet Inc.), Financials, 2022-2024
Figure 75: Creative Virtual Ltd., Financials, 2022-2024
Figure 76: Avaamo Inc., Financials, 2022-2024
Figure 77: Amazon Web Services, Inc., Financials, 2022-2024
Figure 78: Oracle, Financials, 2022-2024
Figure 79: LiveChat, Inc., Financials, 2022-2024
IBM
Nuance Communications, Inc.
Microsoft Corporation
Google, Inc. (Alphabet Inc.)
Creative Virtual Ltd.
Avaamo Inc.
Amazon Web Services, Inc.
Oracle
LiveChat, Inc.
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