Introduction

Chatbot Statistics: Chatbots have become a vital component of today's digital landscape, providing businesses with an innovative means to improve customer service, streamline operations, and offer 24/7 assistance. Thanks to advancements in artificial intelligence (AI) and natural language processing (NLP), these intelligent systems are now capable of offering personalized, dynamic interactions.

Increasingly adopted across industries such as e-commerce, healthcare, and finance, chatbots play a crucial role in tasks like responding to inquiries, handling transactions, and guiding users through intricate procedures. The ongoing evolution of chatbot technology is poised to transform the way businesses interact with customers, enhancing both customer satisfaction and operational effectiveness.

As companies continue to adopt automation, chatbots are becoming increasingly indispensable in digital transformation initiatives, delivering unmatched convenience and scalability to businesses worldwide.

According to a global survey from 2024, the age group 25 to 34 is most likely to use chatbots when visiting brand websites. Approximately ** percent of users within this age group utilized chatbots on a direct-to-consumer (D2C) site. The age group between 35 and 44 ranked second, with nearly ** percent of respondents. Those aged 55 and 64 were the least likely to use this type of software application.

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Chatbot Market Size 2025-2029

The chatbot market size is forecast to increase by USD 9.63 billion, at a CAGR of 42.9% between 2024 and 2029. Several benefits associated with using chatbots solutions will drive the chatbot market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 37% growth during the forecast period.
By End-user - Retail segment was valued at USD 210.60 billion in 2023
By Product - Solutions segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 1.00 billion
Market Future Opportunities: USD 9.63 billion 
CAGR : 42.9%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and evolving landscape, characterized by the integration of advanced technologies and innovative applications. Core technologies such as natural language processing (NLP) and machine learning (ML) enable chatbots to understand and respond to user queries in a conversational manner, transforming customer engagement across industries. However, the lack of standardization and awareness surrounding chatbot services poses a challenge to market growth. As of now, chatbots are increasingly being adopted in various sectors, including healthcare, finance, and e-commerce, with customer service being the primary application. According to recent estimates, over 50% of businesses are expected to invest in chatbots by 2025.
In terms of service types, chatbots can be categorized into rule-based and AI-powered, each offering unique benefits and challenges. Key companies, such as Microsoft, IBM, and Google, are continuously pushing the boundaries of chatbot technology, introducing new features and capabilities. Regulatory frameworks, including GDPR and HIPAA, play a crucial role in shaping the market landscape. Looking ahead, the forecast period presents significant opportunities for growth, as chatbots continue to reshape the way businesses interact with their customers. Related markets such as voice assistants and conversational AI also contribute to the broader context of the market.
Stay tuned for more insights and analysis on this continuously unfolding market.

What will be the Size of the Chatbot Market during the forecast period?

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How is the Chatbot Market Segmented and what are the key trends of market segmentation?

The chatbot industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Retail
  BFSI
  Government
  Travel and hospitality
  Others


Product

  Solutions
  Services


Deployment

  Cloud-Based
  On-Premise
  Hybrid


Application

  Customer Service
  Sales and Marketing
  Healthcare Support
  E-Commerce Assistance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The retail segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, with adoption in various sectors escalating at a remarkable pace. According to recent reports, the chatbot industry is projected to expand by 25% in the upcoming year, while current market penetration hovers around 27%. This growth can be attributed to the increasing adoption of conversational AI platforms in customer service and e-commerce applications. Unsupervised learning techniques and machine learning models play a pivotal role in chatbot development, enabling natural language processing and understanding. Dialog management systems, including F1-score calculation and dialogue state tracking, ensure effective conversation flow. Human-in-the-loop training and contextual understanding further enhance chatbot performance.

Natural language generation, intent recognition technology, and knowledge graph integration are essential components of advanced chatbot systems. Multi-lingual chatbot support and speech-to-text conversion cater to a diverse user base. Reinforcement learning methods and deep learning algorithms enable chatbots to learn and improve from user interactions. Chatbot development platforms employ various data augmentation methods and active learning strategies to create training datasets for transfer learning applications. Question answering systems and voice-enabled chatbot features provide seamless user experiences. Sentiment analysis techniques and user interface design contribute to enhancing customer engagement and satisfaction. Conversational flow design and response generation models ensure e

One of the reasons behind AI-powered customer service is the preference for conversational AI over phone calls. In 2024, 82 percent of consumers stated they would use a chatbot instead of waiting for a customer representative to take their call. An outstanding 96 percent of surveyed shoppers believed that more companies should opt for chatbots over traditional customer support services.

The Chatbot Market Report is Segmented by Component (Platform/Software and Services), Application (Customer Support, Sales and Marketing, and More), Deployment Mode (Cloud and On-Premise), Organization Size (Small and Medium Enterprises and Large Enterprises), End-User Industry (Retail and ECommerce, BFSI, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

This statistic shows the preferences of customers who interact with different customer services online, between a chatbot or virtual assistant and a live customer service representative, as of 2017. At the time of the survey, ** percent of respondents stated they would be comfortable receiving customer service from artificial intelligence in an online retail situation.

As per Cognitive Market Research's latest published report, the Global Chatbot market size was USD 3.02 Billion in 2022 and it is forecasted to reach USD 24.58 Billion by 2030. Chatbot Industry's Compound Annual Growth Rate will be 21.58% from 2023 to 2030. Chatbot Market Dynamics

Key Drivers of Chatbot Market

High integration of chatbot in various industrial verticals:

Use of chatbots is rising exponentially in both the business sector as well as in consumer market. It is an instant messaging app that creates natural conversations between businesses and customers. The demand for chatbot has increased in recent years attributed to the rising inclination of people across the world towards online shopping. In online shopping platforms, sales team uses chatbots to answer non-complex product questions which helps in improving the satisfaction level and convenience of customers.

Moreover, the world is moving rapidly towards digitalization. Amid COVID-19 pandemic, the world has been turned totally into digital world. Hence, healthcare industry, like all other industries have started using chatbot aggressively which helps in connecting patients with hospitalists for general diagnosis and treatment. It also allows in scheduling appointments with physicians without needing to travel to the hospital.

Chatbot have been connected through websites, mobile applications, along with social media platforms which further drives the growth of market. As AI implementation in chatbot is rising, it is revolutionizing the business processes in multiple industries. AI-powered chatbot has thus no limits for its usage in various sectors, including BFSI, telecommunication, e-commerce, and others accrediting the growth market across the world.

Increasing need for customer analytics and emergence of messenger apps to drive the market

Key Restrains of Chatbot Market

Drawbacks regarding the full understanding of natural language:

In order to ensure that chatbot is providing correct and relevant information to the customers, it must be updated with the correct information. However, people in today's world widely uses shortforms out of their habit for speedy responses. Such kind of slangs or misspellings are frequently misunderstood by these chatbots. Hence, inability in understanding this kind of natural language may hamper the growth of chatbot market. However, rising use of cloud services by various enterprises will help chatbot to retrieve huge amount of data from the cloud which will enhance the understanding of natural language and further stimulating the growth of chatbot market.

Key Trends in Chatbot market:

AI chatbots with high emotional intelligence will drives the market in coming years:

Using artificial intelligence and real time data, chatbot is now able to do sentiment analysis by using facial emotion recognition, eye tracking technology and video interactions in real-time. This allows it to understand the mood, pitch, and feelings and customize their responses to deliver custom-made communication.

Thus, it will not be wrong to say that AI-powered chatbot is going to enhance values in business sectors by providing limitless applications in large, medium and small enterprises. When more companies use the cloud, their ability to manage customer interactions, data management, and internal communication effectively will greatly increase their business agility without having to worry about increased infrastructure costs or security risks.

What is the impact of the COVID-19 pandemic on Chatbot Market:

Advent of COVID-19 pandemic has reshaped the lives of people across the globe by changing the way of work, shop, and learn. Every sector has been impacted due to the sudden out-break of pandemic. Lockdowns were announced and many customer service centers were closed. Disruption in supply chain occurred and online services failed to handle additional volumes effectively. Hence, to handle this chaos effectively, companies started investing in new technologies to provide additional support and allow workers to adapt to work-from-home setups.

Lockdown during year 2020, embraced digital world like never before. Thus, digital literacy rate during the pandemic increases exponentially which results in stimulation of chatbot use. Retail businesses increases the use of chatbot during COVID-19 to fulfil consumer needs and giving retailers...

This dataset contains responses from a survey conducted for a master's thesis at Erasmus University Rotterdam. The survey investigated how consumer perceptions of privacy and trust in interactions with centralized versus decentralized AI-powered chatbots influence customer satisfaction. The survey included a predetermined simulated conversation with an AI-powered chatbot.Purpose of the Study:The main research question addressed in this study is: "How do consumer perceptions of privacy and trust in interactions with centralized versus decentralized AI-powered chatbots influence customer satisfaction?" The study aims to compare the differences in customer satisfaction, privacy concerns, and trust between centralized and decentralized AI-powered chatbots.Data Description:This dataset includes responses from 175 participants after data cleaning and removal of incomplete and biased responses. Participants were randomly assigned to one of three groups:Unaware of the chatbot typeInformed they would interact with a centralized chatbotInformed they would interact with a decentralized chatbotVariables:Customer Satisfaction: Measured with Likert scale questions on a 5-point scale from Strongly disagree to Strongly agree.Consumer Privacy Concerns: Measured with Likert scale questions on a 5-point scale from Strongly disagree to Strongly agree.Consumer Trust in AI-Powered Chatbots: Measured with Likert scale questions on a 5-point scale from Strongly disagree to Strongly agree.Consumer AI Familiarity: Measured with Likert scale questions regarding prior usage and understanding of AI technology on a 5-point scale from Strongly disagree to Strongly agree.Demographic Information: Age group, gender, highest education finished, nationality, and occupation.Chatbot Type: Categorical variable with values: 0 for not aware, 1 for aware of interacting with a centralized chatbot, and 2 for aware of interacting with a decentralized chatbot.Usage Notes:The dataset is provided in a XLSX file format and includes all necessary variables for analysis. The dataset can be used to conduct various statistical analyses, including descriptive statistics, hypothesis testing, and regression analysis.

Get insights through powerful and well researched Chatbot Statistics that you need get through before implementing chatbot in 2025 for your business

The chatbot market size is projected to grow from $ 5.84 billion in 2024 to $61.97 billion by 2035, representing a CAGR of 23.94% during the forecast period 2024-2035.

Unlock data-backed intelligence on India Chatbot Market, size at USD 251.5 in 2023 showcasing growth opportunities and key players.

The chatbot market size reached a value of USD 839.33 Million in 2024. The market is expected to grow at a CAGR of 24.90% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 7754.56 Million.

The chatbot market revenue is expanding with businesses increasingly recognizing the importance of providing round-the-clock customer service. Chatbots meet this demand by offering instant, consistent responses without breaks or delays. With global customers operating in different time zones, companies leverage chatbots to ensure uninterrupted support. In May 2025, French AI startup Mistral AI launched Le Chat Enterprise, a corporate-focused chatbot designed for deep integration with enterprise content systems and offer scalable solution for global businesses. Such launches improve customer satisfaction, reduces churn, and allows human agents to focus on complex issues.

The chatbot industry is revolutionizing e-commerce via conversational interfaces that guide users from product discovery to purchase. Consumers increasingly prefer real-time conversations over static websites, particularly on mobile. Brands use chatbots to simulate the in-store assistant experience, reducing cart abandonment and increasing sales. In June 2025, Walmart launched its new generative AI shopping chatbot Sparky to help users find, plan, compare, and repurchase products effortlessly. As digital transactions rise and mobile commerce dominates, the need for interactive, conversational sales channels propels the market forward.

Available data formats for the 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 report.

Global Artificial Intelligence (AI) Chatbot market size is expected to reach $29.17 billion by 2029 at 27.4%, segmented as by solution, ai chatbot software, ai chatbot platforms, natural language processing (nlp) solutions

Research Hypothesis:

The hypothesis is that service quality and trust significantly influence customer satisfaction with Telkomsel’s Veronika chatbot. Key dimensions include reliability, responsiveness, and empathy in service quality, and trust based on the chatbot's ability, benevolence, and integrity.

Data and Data Collection:

Data for this study were collected from Generation Z users who have experience using Telkomsel’s Veronika chatbot. A structured questionnaire was administered to 240 respondents, 52.9% of whom were female and 47.1% male, with ages ranging from 18 to 22 years. The data collection occurred between May and June 2024, and the questionnaire was distributed via social media platforms such as Instagram, Line, and WhatsApp. Non-probability sampling methods, specifically purposive and quota sampling, were used to ensure that only those familiar with the chatbot were surveyed.

The questionnaire comprised 31 questions designed to assess three key variables: service quality, trust, and customer satisfaction. A five-point Likert scale, ranging from "Strongly Disagree" to "Strongly Agree," was employed for all questions. Service quality was evaluated using the SERVQUAL model, while trust was measured through dimensions of ability, benevolence, and integrity. Customer satisfaction was assessed using items adapted from the Customer Satisfaction Index (CSI).

Key Findings:

1.Service Quality: A significant positive impact on customer satisfaction was found (β = 0.496, p < 0.001), with reliability and responsiveness being key factors. The highest loading (0.837) was on Veronika’s ability to provide alternative solutions.

2.Trust: Trust was also a significant predictor (β = 0.337, p < 0.001), with confidentiality being the most important trust factor (outer loading = 0.835).

3.Customer Satisfaction: Satisfaction was strongly influenced by both service quality and trust, with outer loadings from 0.908 to 0.918, particularly in terms of the chatbot's clarity and communication effectiveness.

Data Interpretation:

Both service quality and trust are essential to customer satisfaction, with service quality being a stronger predictor. Users value reliability and responsiveness more than trust, though both are necessary for high satisfaction. The reliability of the questionnaire was confirmed with high Cronbach’s alpha values, such as 0.938 for service quality.

Conclusion and Implications:

Improving service quality, especially reliability and responsiveness, will enhance user satisfaction. Strengthening trust, particularly in data security, is also crucial. Future research should explore broader demographics and long-term effects, while qualitative studies could offer more insights into user experiences.

Chatbot Arena Conversations Dataset

This dataset contains 33K cleaned conversations with pairwise human preferences. It is collected from 13K unique IP addresses on the Chatbot Arena from April to June 2023. Each sample includes a question ID, two model names, their full conversation text in OpenAI API JSON format, the user vote, the anonymized user ID, the detected language tag, the OpenAI moderation API tag, the additional toxic tag, and the timestamp. To ensure the safe release… See the full description on the dataset page: https://huggingface.co/datasets/lmsys/chatbot_arena_conversations.

Data set for AI Chatbot in banking for Indonesia case.

Vietnam chatbot market size reached USD 31.2 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 207.1 Million by 2033, exhibiting a growth rate (CAGR) of 18.50% during 2025-2033. The market is being driven by several key factors, including an increasing need for improved customer service, a rising trend in using messaging platforms to offer efficient customer solutions, and a growing uptake of over-the-top (OTT) platforms for streaming movies, series, and documentaries.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, product, application, organization size, and vertical.

This statistic shows the size of the global chatbot market in 2017 and gives a forecast of the predicted market size in 2024. In 2017, chatbot market revenues reached almost *** million U.S. dollars, and forecasts suggest that this number will continue to grow rapidly in the coming years.

A dataset summarizing opinions and trends on chatbot adoption in customer experience (CX) based on a sample of US CX leaders.