Chatbot use by companies to result in savings of $8 billion annually: Report
From 2016 to 2021 the chatbot industry has been growing at a compound annual growth rate (CAGR) of 35%.
- Chatbot market size is estimated to grow to $3 billion by 2021
- Over 40,000 chatbots currently exist, across multiple platforms
- Annual savings are expected from chatbot use is expected to be $8 billion
The use of chatbots by companies today to service customer needs and requirements has increased significantly. The chatbot market size is estimated to grow to $3 billion by 2021 from currently $700 million in 2016.
This is as the chatbot market is growing at over 30%, with many companies joining the chatbot innovation wave, said a Haptik report. Over 40,000 chatbots currently exist, across multiple platforms.
From 2016 to 2021 the chatbot industry has been growing at a compound annual growth rate (CAGR) of 35%. It further said that 80% of companies to launch their own chatbot by 2020.
In a survey done by Oracle, with over 800 decision-makers including CXOs, senior sales, and marketing executives from France, the Netherlands, South Africa and the UK as participants, it was concluded that 80% of companies are planning to develop chatbots, if they have not already.
The report further said that the annual savings are expected from chatbot use is expected to be $8 billion. This is as it will automate a lot of human efforts in solving customer queries effectively.
“Not just that, as chatbots start integrating with transaction and payment options, companies can save money on customer acquisition costs and over the longer term, improve customer experience and retention,” said the report.
Some of the biggest companies such as Microsoft, Facebook, Google, Amazon and Apple are using chatbots. Even smaller tech companies such as Slack, Wechat, Kik, Telegram are using chatbots.