The chatbot statistics you need to know in 2024

Many businesses and industries nowadays use chatbots worldwide. It might be shocking for you that the first chatbot was invented in 1966 and it is older than the internet. Chatbot growth as conversational AI is increasing for better customer engagement and being available 24*7 at this fast pace. Facebook is the company that uses this and made it popular by integrating chatbots into Messenger in 2016.

The trend of chatbots arrived in 2023 when ChatGPT and Google Bard (Gemini) launched during the massive AI boom. It forces all the companies to use this in their system to boost up there performance and services to stay relevant in the market.

In this rising market many chatbot startups failed due to the complexities of natural language. Organisations must use best practices to reduce the risk of failure. We gathered some chatbot stats to show how the market and usage of chatbots have evolved over the past few years.

What is the market of chatbots in 2024?

The chatbot market has experienced growth in the past few years and it is estimated to be valued at 7.01 billion USD. The factors that lead to the growth of the market are increasing customers, technology advancements, growth of messaging platforms and adoption of consumer analytics by businesses worldwide.

Companies use AI and NLP technologies to meet customer needs and demand to enhance user experience and on-point solutions. The integration of chatbots with social media and messaging apps is giving high returns on investment with a projection to reach 20.81 billion USD by 2029 increasing CAGR of 24.32%. The key players in this market are Google, Microsoft, IBM, Oracle and others, where the top countries are the United States, India, Germany, the United Kingdom and Brazil estimating 1.5 billion people using bots. And by 2027 chatbots become the primary source of customer service.

How chatbot is beneficial for customers

Apart from your organization how chatbot helps your customers and achieve customer satisfaction.

Engaging interaction: The customer wants a friendly and clear conversation and the chatbot is designed to communicate in different tones according to human needs and solve their queries efficiently. Which makes the conversation fun and engaging for customers. As per stats, the chatbot engagement rate is 35 - 40%.

Stay 24/7 Active: The chatbot assists customers round the clock and provides answers to their queries and resolves problems at any time day & night. The quick response makes engagement and customer support better. As per stats, 64% of customers find 24/7 assistance, making it a helpful feature of the chatbot.

Reduce customer stress: As per the study, customers prefer chatbots over human interaction which provides easy and clear answers. Over 70% of customers are willing to use chatbots over human interaction because they are more accurate and reduce time.

Quick Response: The chatbot handles multiple conversions and provides quick solutions to any problem. the workload of the customer support agent will be reduced and they handle other important issues. Over 69% of customers get a quick response from bots.

Chatbot statistics for E-commerce

E-commerce businesses are getting benefits by using chatbots and these bots help users to suggest products and services, reduce time and resolve their issues.

All of this provides a seamless experience for users where nobody gets stuck and the workflow goes smoothly. Some e-commerce stats help to know how helpful and effective the chatbot is in the e-commerce industry.

• Increasing sales in business chatbots helps to grow sales by 67% which makes it more efficient. 26% of all sales transactions happen due to bot interactions.
• Leveraging chatbots in business helps to boost the revenue of the business by 7 - 25% with the bot playing an important role in customer support.
• Nearly 40% of users are interested in bot interactions over human interaction. The global consumer retails via digital assistants is estimated to reach 142 billion USD.
• The cost-saving asset for business by saving per chatbot interaction ranges from $0.50 to $70, which makes a money saver for customer interaction.
• Bots help to convert queries into quality leads by 23.7% which shows the potential for chatbots to increase sales and revenue.

Chatbot statistics for education

Chatbots are now widely used in institutes and the ed-tech industry. Bots help student in their admission process, inform important dates provide study tips, and perform similar academic tasks within your education sector.

• The growth of chatbots in education is reaching 994.5 million USD by 2024 and is expected to increase by 36% annually. Chatbots in the ed-tech industry make a significant mark.
• Chatbots are used in Edtech to collect potential student data to assist accordingly. The average cost of the chatbot in Edtech is around $119 per month.
• The increasing trend of chatbots in the education sector, turn many companies to integrate chatbots into their systems to increase performance by around 58% B2B and 65.1% of Saas businesses are using bot servers.
• 94% of students find chatbots helpful in their institute and more helpful at the time of enrollment. Students find it easy to communicate rather than using traditional methods going on websites or contacting academic staff.
• Institutions need to be transparent about the data they collect and use to enhance the student experience. Over 57% of students are comfortable with sharing data with their institute for support.

Chatbot Statistics for Healthcare

Chatbots in healthcare are growing rapidly in this field and helping hospital staff to reduce their workload, bots are accessible to patients also so they do not need to wait in lines they easily get their reports, and provide health reminders and appointments.

• Chatbots in healthcare are valued at approximately $211.60 million in 2022 and are expected to rise by $647.29 million by 2030 at a CAGR of 15.0%, indicating the adoption of chatbots in the healthcare industry.
• The adoption rate of the bots increased by over 64% of patients agreeing to use a chatbot for their basic medical help and 60% of medical professionals and staff would like to use chatbots to reduce their workload.
• In 2021, a big survey found that 22% of adults tried out a mental health chatbot, and almost half of them, around 47%, were interested in using one if they needed it. When the COVID-19 pandemic hit, the number of people using mental health chatbots shot up to nearly 60%! What's interesting is that out of all these users, 44% relied solely on these digital assistants without reaching out for human therapy. It shows how much these chatbots became a lifeline for people during tough times.
• Consumers appreciated mental health chatbots, with 65% recognising their benefits and 74% seeing their importance. But here's the kicker: a whopping 86% felt these digital assistants lacked a human touch, like understanding or showing emotions.
• On the flip side, doctors saw great potential in chatbots. Around 78% thought they'd be handy for scheduling appointments, 76% for finding health clinics, and 71% for giving medication info. So, while consumers value them, there's still room for improvement to make these bots feel more human-like.

Chatbot statistics for Finance/Banking

Chatbots are now integrated into the banking and finance sector because they reduce operational costs and improve customer service. Providing 24/7 assistance and bank services helps banks collect basic customer data and improve their services according to customer needs.

• According to the survey by the Reserve Bank of India (RBI) at the end of 2023 around 75% of Indian banks and Non-banking financial companies (NBFCs) have used chatbots and virtual assistance for customer assistance.
• In FY17, only 5 banks had chatbots but the growth increased over the past few years with 26 out of 33 commercial banks using bots with a 78.8% adoption rate.
• In 2022, over 98 million users, which accounts for about 37% of the U.S. population, engaged with a bank's bot.
• By 2026, this number is projected to increase to 110.9 million users.
• All of the top 10 largest commercial banks have integrated digital assistants into their client service strategies.
• Chatbots can boost first-call resolution rates by 20%, raising it from 50% to 70%, leading to improved user satisfaction.
• By 2023, digital assistants were estimated to save banks between $0.50 and $0.70 per interaction, resulting in approximately $7.30 billion in global savings.

Future of chatbot

• Larger companies have quickly embraced chatbots, capturing over a 46% share of the market, a trend expected to persist and grow by 2027.

• Capgemini predicts that 70% of consumers will replace physical visits to shops or banks with voice assistants in the next three years.

• Retail consumers are expected to spend over $142 billion via bots by 2024, a significant increase from $2.8 billion in 2019, according to Insider Intelligence.

• Gartner forecasts that by 2027, digital assistants will become the primary channel for client service in 25% of all businesses.

• A third of AI startup founders believe that digital assistants will be the most popular customer technology in the next five years.

• It's projected that AI bots will handle 95% of all customer service interactions by 2025.

• With advancements in machine learning, AI, and natural language processing, chatbots are expected to become more human-like, aided by the adoption of models like ChatGPT and the development of new AI programs.