Chatbot Statistics

This article is a compilation of how chatbot technology has evolved and statistics that are worth knowing. Read the chatbot statistics here.

Does the phrase, “Hi, how may I help you?” sound familiar? Does it strike a chord in your mind? If yes, then you might have already guessed what this article is going to be about. Yes, it’s about chatbots!

Chatbots are nothing but software applications that use Artificial Intelligence(AI) to comprehend what a human wants and guides them accordingly. The first chatbot, Eliza dates way back to 1966, making it older than the internet. But the chatbot technology had to wait until 2016 to flourish when Facebook allowed developers to place chatbots on Messenger.

This article is a compilation of how chatbot technology has evolved and statistics that are worth knowing. Let us dive right into some contemporary chatbot statistics.

On this page, you’ll find:

• General Chatbot Statistics
• Demographic and Geographic Aspects of Chatbot Users
• Usage of Chatbots in Businesses
• Consumer Preferences for Chatbots
• Benefits and Issues in using Chatbots

Key Chatbot Statistics

These are the top 10 stats from the article that follows below:

• In 2020, the chatbot market value was $17.17 billion. This is expected to reach a whopping $102.29 billion by 2026, at a CAGR of 34.75% (Research and Markets)

• Globally, by using chatbots, the cost savings in banking is expected to reach $7.3 billion by 2023, up from the 2019 estimate of $209 million. (Juniper Research)

• The U.S. (36%), India (11%), and Germany (4%) are the countries with the highest number of chatbot users. (Collect.chat)

• In terms of the number of chatbots, the European market (45%) leads, followed by North America (28%). (Cognizant)

• About 34% of AI start-up founders say that in the next 5 years, chatbots will be the top AI consumer application. (Emerj)

• The most common use of chatbots is for sales (41%), customer support (37%), and marketing (17%). (Intercom)

• The easiest way to contact a company is chatbots according to 21% of consumers. (Ubisend)

• In general, people prefer chatbots to an app. (Outgrow)

• By 2023, businesses and consumers will save a combined 2.5 billion hours by using chatbots. (Juniper Research)

• Voice-to-text dictation (46%) and support team collaboration on tasks (26%) are the top business uses of AI chatbots. (Spiceworks)

General Chatbot Statistics

The global chatbot revolution is fuelled by the growth of automation. Chatbot innovations are driven by advancements in Artificial Intelligence. The potential benefits and promising results that the chatbots offer has made the technology popular among companies. Here is a collection of some general chatbot statistics that will help you gain insights into this trending chatbot technology.

• In 2020, the chatbot market value was $17.17 billion. This is expected to reach a whopping $102.29 billion by 2026, at a CAGR of 34.75%. (Research and Markets)

• Globally, by using chatbots, the cost savings in banking is expected to reach $7.3 billion by 2023, up from the 2019 estimate of $209 million. (Juniper Research)

• At present, chatbots are used by about 1.4 billion people. (Acquire)

• Chatbots are currently used widely by enterprises (24%), mid-sized companies (15%), and small businesses (16%). (Spiceworks)

• Almost 80% of standard questions are answered by chatbots. (IBM)

• The most profitable field for chatbots is the real estate industry. (Chatbots Magazine)

• By 2022, 75%-90% of queries are predicted to be handled by chatbots. (CNBC)

• During the COVID-19 pandemic, AI-powered chatbots play a significant role in managing patients’ needs. (World Health Organization)

• 29% of U.S. customer care activities are automated by chatbots or similar technologies. (Tableau)

• During the onset of the COVID-19 pandemic, chatbots were implemented by around 67% of leading global financial service firms for their apps. (Forrester)

Demographic and Geographic Aspects of Chatbot Users

You are not the only person who would have noticed the chat icons on the lower right-hand corner of sites that you visit. Across the world, the growth of chatbot technology has become prominent. It has provided humanity with several useful tools and resources. Let us now look into some statistics on the demographical and geographical aspects of chatbot users.

• The U.S. (36%), India (11%), and Germany (4%) are the countries with the highest number of chatbot users. (Collect.chat)

• In terms of the number of chatbots, the European market (45%) leads, followed by North America (28%). (Cognizant)

• When shopping online, about 40% of people of all ages prefer using chatbots. (Tidio)

• The top benefit of using chatbots is a 24-hour service according to 66% of Millennials and 58% of Baby Boomers. (Drift)

• Every day, 40% of millennials engage with bots. (Marketing Dive)

• Chatbots have been used by at least 15% of American adults. (Convince & Convert)

• Compared to Millennials, Baby Boomers are more likely to expect benefits from chatbots. (Apiumhub)

• In the U.S., EU, and China 40% of businesses are using pre-built AI programs, including chatbots and virtual agents. (IBM)

• In terms of the chatbot maturity mix, users in Asia-Pacific and Europe are similar. (Cognizant)

• The rate at which chatbots are used per 1000 people is highest in the U.S. (Boomtown)

Usage of Chatbots in Businesses

The way businesses communicate with customers has transformed drastically. They always are on the run to bring in a new and exciting aspect to their websites, products, and services. By using chatbots, businesses are at a huge profit because they can save on staffing costs and enable their support staff to solve harder problems and issues that the customers face. Now, let us look into some statistics that throw light on the usage of chatbots in businesses.

• About 34% of AI start-up founders say that in the next 5 years, chatbots will be the top AI consumer application. (Emerj)

• The most common use of chatbots is for sales (41%), customer support (37%), and marketing (17%). (Intercom)

• Websites can provide personalized attention to customers because of the use of conversational chatbots, say 57% of executives. (Accenture)

• Declarative and conversational are the two types of chatbot and AI engagement. (Oracle)

• Chatbots need to be used by more companies according to 35% of consumers. (Opus Research)

• Various U.S. companies use Microsoft’s Healthcare Bot to respond to over 1 million inquiries about the pandemic, daily. (Microsoft)

• C-level executives account for 41% of people starting online chat conversations with businesses. (Drift)

• Businesses can save up to 30% from the $1.3 trillion they spend on customer service requests by using chatbots. (Chatbots Magazine)

• Within the next 18 months, 53% of service organizations will use chatbots. (Salesforce)

• Microsoft Cortana (49%), Apple Siri (47%), and Google Assistant (23%) are the top 3 work-related AI chatbots. (Spiceworks)

Consumer Preferences for Chatbots

From being just a buzzword back then, into a fully functional business tool now, chatbots have progressed a lot. The usage of chatbots by consumers is on the rise. The way consumers engage with chatbots is also changing. Consumers these days prefer chatbots because they can save time and resources by automating customer support services. Let us now hop into this compilation of consumer preferences for chatbots.

• The easiest way to contact a company is chatbots according to 21% of consumers. (Ubisend)

• In general, people prefer chatbots to an app. (Outgrow)

• In the U.S, 43% of digital banking users prefer to use a live chat or chatbot to address issues. (eMarketer)

• 35% of people who use chatbots say they use it for a complaint, a problem, or to get explanations. (Drift)

• The most common uses of a smart speaker are playing music (82%) and shopping (54%). (Capgemini)

• 67% of businesses believe that chatbots will surpass the usage of mobile apps in the next 5 years. (Honeybot)

• 71% of customers will happily use a chatbot if it improves their customer experience. (Conversocial)

• 9% of consumers think that chatbots should never be used by companies. (Userlike)

• According to 60% of consumers, a human can understand what they need better when compared to a chatbot. (Business Insider)

• As long as they receive the support they need, 40% of consumers have no preference when it comes to interacting with a chatbot or a human for help. (HubSpot)

Benefits and Issues in using Chatbots

One of the key benefits of using chatbots is the enhancement of customer services so that businesses can deliver a better customer experience. Eventually, this leads to increased revenue. But there is always an equal and opposite reaction to every action, right? Similarly, there are many issues while using chatbots. In this section, we shall see some statistics that highlight the benefits as well as the issues in using chatbots.

• By 2023, businesses and consumers will save a combined 2.5 billion hours by using chatbots. (Juniper Research)

• Voice-to-text dictation (46%) and support team collaboration on tasks (26%) are the top business uses of AI chatbots. (Spiceworks)

• After-sales and customer service operations are assisted by 77% of chatbots. (Accenture)

• In an online retail situation, 34% of consumers preferred to communicate with AI in 2017. (Statista)

• By 2021, 85% of customer interactions will be handled without human agents. (Chatbots Life)

• 51% of companies don’t use chatbots because even now, the technology can’t include client history for personalized experiences. (Accenture)

• Globally, only 9% of E-commerce companies have implemented AI chatbots. (Statista)

• It takes an average of 10 hours for a company to respond to a message on messaging platforms. (Oracle)

• User adoption hesitancy is the main reason why 64% of executives don’t intend to implement chatbots. (Accenture)

• 27% of consumers are not able to differentiate whether they are transacting with a human or a chatbot. (PwC)

Conclusion

By now, you would have acknowledged the importance of chatbots. The chatbot market will certainly expand in the years to come. Even though companies are still learning how to make the most of chatbots, the technology has well established itself in customer communication.

Given the current circumstances and trends, more and more customers will be supporting this technology. Without much financial burden, chatbots will help you and your workforce.