Artificial Intelligence (AI) In Customer Experience Global Market Report 2025

What Is Covered Under Artificial Intelligence (AI) In Customer Experience Market?

Artificial Intelligence (AI) in customer experience refers to the application of artificial intelligence technologies to enhance customer interactions and improve service quality. It involves using AI-driven tools and algorithms to personalize customer journeys, provide real-time support, and analyze customer feedback. This approach aims to increase customer satisfaction and loyalty while optimizing operational efficiency.

The main components in the artificial intelligence (AI) in customer experience market are solution and services. AI solutions are comprehensive software systems or platforms that leverage artificial intelligence to improve various aspects of customer experience. It offers deployment options through both cloud-based and on-premises modes, catering to organizations of various sizes, including large enterprises and small and medium-sized enterprises (SMEs). Applications within this market include chatbots and virtual assistants, sentiment analysis, customer behavior analytics, personalized recommendations, and others to support a range of industry sectors, including retail and e-commerce, banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, travel and hospitality, media and entertainment, and others.

What Is The Artificial Intelligence (AI) In Customer Experience Market Size 2025 And Growth Rate?

The artificial intelligence (AI) in customer experience market size has grown exponentially in recent years. It will grow from $13.9 billion in 2024 to $17.75 billion in 2025 at a compound annual growth rate (CAGR) of 27.7%. The growth in the historic period can be attributed to AI reducing operational costs, growth in use of AI-driven chatbots, rise in customer expectations, and improvement in customer data security and fraud detection.

How Is The Artificial Intelligence (AI) In Customer Experience Market Segmented?

The artificial intelligence (AI) in customer experience market covered in this report is segmented –

1) By Component: Solution, Services

2) By Deployment Mode: Cloud-Based, On-Premise

3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)

4) By Application: Chatbots And Virtual Assistants, Sentiment Analysis, Customer Behavior Analytics, Personalized Recommendations, Other Applications

5) By Industry Vertical: Retail And E-commerce, Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Healthcare, Travel And Hospitality, Media And Entertainment, Other Industry Verticals

Subsegments:

1) By Solution: AI-Powered Chatbots And Virtual Assistants, Sentiment Analysis Tools, Personalization Engines, Predictive Analytics For Customer Behavior, Customer Journey Mapping Tools, Voice And Speech Recognition Systems, AI-Based Recommendation Engines, AI-Driven Customer Feedback Analysis

2) By Services: AI Integration And Implementation Services, Consulting Services For Customer Experience Strategy, AI Model Training And Customization Services, Data Analytics And Reporting Services, Managed Services For AI-Powered Customer Experience, Post-Implementation Support And Maintenance, Customer Experience Optimization Services

What Is Driving The Artificial Intelligence (AI) In Customer Experience Market? Expansion of Digital Channels Driving Growth in AI for Customer Experience Market

The expansion of digital channels is expected to propel the growth of AI in the customer experience market going forward. Digital channels refer to the various online platforms and tools through which businesses and organizations interact with customers, deliver products, content, and conduct transactions. Digital channels enhance customer engagement, streamline communication, and provide personalized experiences across various platforms. AI in customer experience enhances digital channels by automating personalized interactions, providing real-time support, and analyzing customer data to improve engagement and satisfaction. For instance, in September 2024, according to the Office for National Statistics, a UK-based government agency, In Q4 2022, internet sales constituted 27.6% of total retail sales, whereas in Q4 2023, this figure rose to 28.7%, indicating a year-over-year increase in the share of online sales within the retail sector. Therefore, the expansion of digital channels is driving the growth of AI in the customer experience market.

Who Are The Major Players In The Global Artificial Intelligence (AI) In Customer Experience Market?

Major companies operating in the AI in customer experience market are Google LLC, Microsoft Corporation, Amazon Web Service, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Nvidia Corporation, Adobe Inc., Avaya LLC, NICE Ltd., Nuance Communications Inc., Zendesk Inc., Genesys Cloud Services Inc., Pegasystems Inc., Qualtrics LLC, Verint Systems Inc., Sprinklr Inc., Aptean Limited, Freshworks Inc., Medallia Inc., Hootsuite Inc., Servion Global Solutions Ltd., Intercom Inc., Ada Support Inc.

What Are The Key Trends Of The Global Artificial Intelligence (AI) In Customer Experience Market? Advances in AI for Enhancing Customer Experience

Major companies operating in the AI in customer experience market are developing AI-powered assistants to enhance customer relationship management (CRM) capabilities. AI-powered assistants improve customer experience by providing instant, accurate responses to inquiries, personalizing interactions based on user data, and efficiently handling routine tasks, which enhances overall satisfaction and operational efficiency. For instance, in September 2023, Salesforce, a US-based software company, launched Einstein Copilot, an AI-powered assistant. Einstein Copilot enhances the customer experience by leveraging AI to provide personalized interactions and automate various tasks within Salesforce's CRM platform. It aims to help sales, service, marketing, and commerce teams work more efficiently by accelerating deal closures, streamlining case resolution, simplifying campaign development, and assisting with e-commerce tasks.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence (AI) In Customer Experience Market? Microsoft Acquires Nuance Communications Inc. to Enhance AI and Cloud Offerings

In March 2022, Microsoft Corporation, a US-based software technology company, acquired Nuance Communications Inc. for $19.7 billion. The acquisition aims to integrate Nuance's advanced conversational AI and ambient intelligence with Microsoft's secure, industry-specific cloud offerings, enhancing personalized customer experiences and productivity across various sectors. Nuance Communications Inc. is a US-based software development company that leverages AI to improve customer experience by enabling customized interactions and automating processes.

What Is The Regional Outlook For The Global Artificial Intelligence (AI) In Customer Experience Market?

North America was the largest region in the artificial intelligence (AI) in customer experience market in 2024. The regions covered in the artificial intelligence (AI) in customer experience market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence (AI) in customer experience market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Artificial Intelligence (AI) In Customer Experience Market?

The AI in customer experience market includes revenues earned by entities by providing services such as personalized customer support, predictive analytics for customer behavior, automated response systems, and automated customer service solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in customer experience market also consists of sales of AI-driven customer relationship management (CRM) software, AI-powered analytics platforms, virtual customer assistants, and intelligent customer feedback tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Artificial Intelligence (AI) In Customer Experience Industry?

The AI in customer experience market research report is one of a series of new reports from The Business Research Company that provides AI in customer experience market statistics, including the AI in customer experience industry global market size, regional shares, competitors with AI in customer experience market share, detailed AI in customer experience market segments, market trends, and opportunities, and any further data you may need to thrive in the AI in customer experience industry. These AI in customer experience market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.