PUBLISHER: The Business Research Company | PRODUCT CODE: 1888263
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888263
Generative artificial intelligence in chatbots refers to the use of advanced machine learning models that generate human-like responses in real time. It enables chatbots to understand context, create coherent replies, and engage in dynamic conversations, improving interaction quality beyond predefined scripts and making communication more natural and adaptive.
The primary technologies of generative artificial intelligence in chatbots include natural language processing, machine learning and deep learning, automatic speech recognition, and other related systems. Natural language processing is a branch of artificial intelligence that allows computers to understand, interpret, and generate human language. Different deployment modes include on-premise and cloud, and the technology is used for various business functions such as sales and marketing, supply chain and operations, finance and accounting, human resources, and information technology service management. It is applied in customer service, electronic commerce and sales, virtual assistants, information retrieval, and social media and messaging platforms across multiple industries, including banking, financial services and insurance, information technology and telecommunications, retail and electronic commerce, healthcare, government and public sector, media and entertainment, education, and other industries.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The generative artificial intelligence (AI) in chatbots market research report is one of a series of new reports from The Business Research Company that provides generative artificial intelligence (AI) in chatbots market statistics, including generative artificial intelligence (AI) in chatbots industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in chatbots market share, detailed generative artificial intelligence (AI) in chatbots market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in chatbots industry. This generative artificial intelligence (AI) in chatbots market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The generative artificial intelligence (AI) in chatbots market size has grown exponentially in recent years. It will grow from $8.02 billion in 2024 to $10.83 billion in 2025 at a compound annual growth rate (CAGR) of 35.1%. The growth during the historic period can be attributed to the increasing adoption of rule-based chatbots, the rising demand for cost-efficient customer support, the growing use of natural language processing, the expansion of digital communication platforms, and the increasing reliance on automation in enterprises.
The generative artificial intelligence (AI) in chatbots market size is expected to see exponential growth in the next few years. It will grow to $35.68 billion in 2029 at a compound annual growth rate (CAGR) of 34.7%. The growth during the forecast period can be attributed to the increasing demand for personalized user interactions, the rising integration of generative artificial intelligence with cloud platforms, the growing adoption in healthcare and banking, the expansion of multilingual chatbot capabilities, and the increasing enterprise digital transformation initiatives, with key trends including technological advancements in large language models, innovations in conversational artificial intelligence design, developments in multimodal generative artificial intelligence, investment in research and development for artificial intelligence ethics, and innovation in speech-to-speech generative chatbots.
The rising demand for automation in customer service is expected to drive the growth of the generative artificial intelligence in chatbots market going forward. Automation in customer service refers to the use of technology, including artificial intelligence and software tools, to manage customer interactions, queries, and support tasks with minimal human involvement. The growing demand for automation in customer service is driven by businesses aiming for faster response times, round-the-clock support, and consistent, personalized customer interactions while reducing operational expenses. Generative artificial intelligence in chatbots supports this by delivering real-time, personalized responses and managing large volumes of customer queries efficiently. For example, in June 2023, according to the Consumer Financial Protection Bureau, a US-based government agency, more than 98 million people, representing about 37% of the U.S. population, used a banking chatbot in 2022, and the number is projected to increase to approximately 110.9 million users by 2026. Therefore, the rising demand for automation in customer service is fueling the growth of the generative artificial intelligence in chatbots market.
Key companies operating in the generative artificial intelligence chatbot market are focusing on developing API-driven integration for scalable enterprise deployment to improve flexibility, reliability, and customization. An API-driven integration allows organizations to embed generative artificial intelligence into their applications with dedicated infrastructure, ensuring faster response times, customized workflows, and enterprise-level scalability. For example, in March 2023, OpenAI, a US-based artificial intelligence company, launched the ChatGPT API with dedicated capacity options for enterprises. The product offers developers on-demand access to GPT models through a programmable interface, supports organizations by reserving throughput for consistent performance under high demand, and enables customized scaling to meet enterprise needs.
In March 2025, ServiceNow, a US-based provider of enterprise workflow automation solutions, acquired Moveworks for $2.85 billion. Through this acquisition, ServiceNow aims to integrate advanced artificial intelligence assistants into its platform, allowing enterprises to progress from simple information retrieval to autonomous task execution. Moveworks is a US-based company that utilizes generative artificial intelligence in its chatbots.
Major players in the generative artificial intelligence (ai) in chatbots market are Amazon.com Inc., Google LLC, Microsoft Corp., Meta Platforms Inc., IBM Corp., Salesforce Inc., OpenAI LLC, LivePerson Inc., Anthropic PBC, Yellow.ai, Dialpad Inc., Intercom, Ada Support, Kore.ai, AI21 Labs, Avaamo Inc., Master of Code Global, BotsCrew, Botsify Inc., Lindy.ai, Writesonic Inc., Replika, Chatfuel, Rasa, and Botpress Inc.
North America was the largest region in the generative artificial intelligence (AI) in chatbots market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in generative artificial intelligence (AI) in chatbots report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the generative artificial intelligence (AI) in chatbots market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The generative artificial intelligence (AI) in chatbots market consists of revenues earned by entities by providing services such as chatbot integration services, artificial intelligence training and fine-tuning, customer support automation, consulting and strategy services, and managed chatbot operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative artificial intelligence (AI) in chatbots market also includes sales of Single Board Computers, Networking Hardware, and appliance systems. 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.
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.
Generative Artificial Intelligence (AI) In Chatbots Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on generative artificial intelligence (ai) in chatbots market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for generative artificial intelligence (ai) in chatbots ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The generative artificial intelligence (ai) in chatbots market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.