65 Chatbot Statistics 2024 (Market Share & Trends)

Artificial intelligence (AI) chatbots are becoming increasingly popular as businesses look for ways to improve customer service, automate tasks, and generate leads. The global Chabot market is worth $7 billion in 2024 and is expected to reach $42 billion by 2032. 

In our blog post, we explore the latest chatbot statistics, revealing insights into user preferences, market growth, and the impact that chatbots are having on the overall online space. 

Chatbot Statistics In 2024 (Top Picks)

• The chatbot industry is valued at $7 billion currently in 2024. 
• Using chatbots in businesses can save up to 2.5 billion working hours.
• Chatbots will be primary to 25% of all companies by 2027.
• Chatbots are capable of completing 70% of conversations.
• 74% of customers prefer chatbots over a human corporate agent to solve their queries.
• Chatbots are more popular in the United Kingdom than in the United States.
• With a 24.9% growth YoY, Chatbots are the most rapidly expanding brand communication medium.
• Chatbots will deal with up to 90% of healthcare and financial inquiries by 2024.
• The e-commerce sector is thriving due to the incorporation of chatbots.
• Only 9% of customers consider that businesses must never adopt chatbots.
• There are over 3 million chatbots on Facebook Messenger alone.

Chatbot Market Revenue

The chatbot sector is estimated to be roughly valued at $7 billion USD in 2024. The value will reach to $10 billion in 2025 at a CAGR of 23.9%.

Here is a table showing the growth in revenue of the chatbot market over the years:

Chatbot Insights Associated With eCommerce

• Chatbots can improve conversion rates for ecommerce businesses by up to 30%. (Shopify)
• Chatbots can help e-commerce businesses cut down on their customer service costs as the average cost of a chatbot interaction is $0.50, while that of a human customer service interaction is $6.00. (Zendesk)
• The number of e-commerce businesses using chatbots is expected to reach 80% by 2025 (Juniper Research)
• eCommerce chatbots cut cart abandonment by 20-30% by persuading customers to return and complete purchases (Haptik)
• E-commerce stores that took advantage of Facebook Messenger and an abandoned cart chatbot saw a revenue boost of a sweet 7 to 25%. (Yellow.ai)
• There was a 30% increase in order tracking, and the chatbot used in eCommerce stores was helpful in providing a seamless user experience during the purchase of a product.
• Chatbots are expected to generate $112 billion in retail sales in 2024.

Chatbot Benefits Statistics

• The total cost savings from using chatbots reached $11 billion in 2022 and can save businesses up to 30% on customer support costs alone. (Shopify)
• Drift concluded that chatbots are exclusively designed for 24/7 support for customers of all geographies regardless of the time zone difference.
• As a replacement for potential chat support workers, chatbots save up to 30% of businesses in total costs by diminishing chat support, according to IBM.
• Almost 42% of potential customers use chatbots when buying products online for a seamless service without any doubts. (Drift)
• Using chatbots resulted in 80% consumer satisfaction since most chatbots are programmed to deliver accurate results.
• The majority of customers prefer a chatbot over a human corporate agent to solve queries. (Userlike)
• Chatbot Marketing concludes that the response rate in high-quality chatbots is 80-90%, giving seamless customer service compared to an agent.

Chatbot Business Statistics

• Using chatbots in businesses saves 2.5 billion hours, which means along with the profit in monetary value, time is also saved. (Juniper Research)
• $8 billion is estimated to be saved in 2024 by businesses and retail stores by reducing chat support costs.
• According to a study by Drift, 55% of businesses gather more sales when chatbots are used.
• Only 9% of users want chatbots to be eliminated from businesses, while the remaining crowd still prefers chatbots. (Userlike)
• A study by Drift revealed that 33% of customers prefer chatbots over the phone call to make reservations in hotel, restaurant, and resort bookings.
• MIT Technology strongly believes that 90% of complaints are tackled using chatbots instantly if the query is explained properly.
• 80% of organizations are searching for ways to implement chatbots into their service somehow, says CCW Digital.

Did you know? People have used Character.AI to create more than 16 million different chatbots.

Chatbot Customer Support Statistics

• 64% of businesses trust chatbots to provide personalized customer support than regular customer service. (Statista)
• 34% of customers prefer communicating with a customer agent via chatbot protocol instead of phone or live interaction. (Statista)
• Customer satisfaction ratings for live chat —85% are second only to phone support — 91% (Zendesk)
• Through several tests, NewVoiceMedia announced that most issues are not instantly resolved by chatbots and demand a customer support agent.
• 40% of customers prefer chatbot and customer support agents as long as their query is resolved and there are no delays in the feedback, says HubSpot.
• 48% of the customers do not care if the customer support is an agent with personality or an AI-powered chatbot. (Business Insider)
• Juniper Research claims that the insurance sector will save up to $1.3 billion in the upcoming years by incorporating chatbots for effective customer support.

Chatbot Usage In Everyday Work Statistics

• 70% of white-collar employees use chatbots to get done with daily tasks and projects efficiently without any lagging. (Gartner)
• According to SalesForce, 64% of employees report that they can focus on other aspects of their work while letting the chatbot provide customer support.
• Chatbot Magazine predicts that 67% of US Millennials will make a purchase if the market uses chatbots to smoothen user experience and suggest offers.
• More than 75% of users’ queries will be solved by chatbots in 2024. (Juniper Research)
• 40% of millennials talk to chatbots for deals, offers, and upcoming discounts on the desired store or a specific product. (Mobile Marketer)

Global Chatbot Statistics

• In 2022, 88% of customers had at least one conversation with a chatbot (Shopify)
• 87% of users globally give positive feedback on chatbots in different online stores with fewer bad reviews. (Drift)
• The healthcare sector increased by 10% instantly after incorporating chatbots, according to Chatbot Life.
• Usabilla revealed a shocking truth that 46% of the customers most likely prefer human customer agents even if chatbots saved enough time.
• Opus Research says that an investment of $4.5 billion was made for the incorporation of chatbots in various sectors for better customer support.
• The chatbot industry will hit a whopping $994 million by 2024, according to a study by ClickZ.
• At least 67% of the global population used chatbots for customer support, as recorded by Invesp.
• PwC revealed that 27% of customers using customer support for help do not know if they had a conversation with a chatbot or an actual customer agent.
• According to Statista, chatbot revenue will hit $455 million globally by 2027 if there is continuous adoption of the use of chatbots.
• Facebook conducted a survey and found that 79% of users feel confident if they talk directly to the brand’s customer agent instead of a chatbot.
• A throwback to 2018 by Kindly revealed that there was $41 million in chatbot revenue, which seemed to be less compared to the chatbot value today.
• In 2021, most brands will focus on developing their chatbots better instead of developing their mobile application, as stated in a study by Gartner.

Statistics Associated With The Challenges Of Chatbot Usage

• 60% of consumers are also concerned that chatbots cannot understand their queries (Business Insider)
• 46% of people would rather receive live support, even if a chatbot was quicker (Chatbots Magazine)
• 25% of customers have had personal information such as passwords or credit card numbers mistakenly stored by a chatbot. (Medium)
• 53% of customers have said they were frustrated when interacting with a chatbot. (Outgrow)
• Chatbots Resolve 58% of Returns and Cancellations but Only 17% of Billing Disputes (Gartner)

What Do U.S. Citizens Think About Chatbot’s Impact On Jobs?

AI chatbots are increasingly used in the workplace and are automating many tasks currently done by humans, including customer service, data entry, and scheduling. While some jobs are being lost, new jobs for chatbot developers and trainers are being created. Chatbots are also freeing up human workers to focus on more strategic tasks.

Let us take a close look at some figures that demonstrate how AI chatbots are affecting the state of employment globally:

• 18% of respondents in the US thought that AI would lead to fewer jobs. In contrast, 25% of respondents aged between 30 to 44 years stated that AI would create more jobs.

Here is a table showing what citizens in the US think about AI and its impact on jobs:

ChatGPT Statistics

ChatGPT has to be the #1 chatbot in the world. Since its launch in late 2022, It has taken the world by storm. You can use it for regular chatting and for various purposes like rephrasing, grammar checking, playing games, copywriting, and so on.

Recently it rolled out access to GPT-4 technology to ChatGPT Plus users; now, the spectrum of possibilities has grown even more.

Here are some of the amazing statistics associated with the chatbot:

• ChatGPT has over 200 million monthly active users. 
• The chatbot has 100 million weekly active users.
• ChatGPT surpassed 1 million users in less than a week of its official launch.
• Over 2 million developers use ChatGPT.
• More than 92% of Fortune 500 companies are using ChatGPT.
• ChatGPT’s website gets over 1 billion visits every month on average. ChatGPT has surpassed 16 billion all-time page visits.ChatGPT’s website gets over 1 billion visits every month on average. ChatGPT has surpassed 16 billion all-time page visits.
• ChatGPT is forecasted to generate a revenue of $1 billion in 2024.

Google Gemini Statistics (Formerly Bard)

Google Bard is rebranded as Gemini, combining the features of both Bard and Deut AI.

Google Gemini is ChatGPT’s top competitor and is arguably the second most used Chatbot in the market. It implements the LaMDA (Language Models for Dialog Applications) conversation technology.

In this section, we will take a look at some interesting facts and figures about Google Bard.

• Gemini is forecasted to have over 1 billion users worldwide by 2024.
• Gemini has an average of 330.9 million monthly visits.
• It is trained on 1.56 trillion words and 137 billion parameters.
• Most of Google Gemini’s traffic comes from the United States (37.24%). Followed by India (9.56%), and Japan (6.67%)
• 76.74% of Bard’s traffic comes from direct sources.
• YouTube sends the most traffic to Google Gemini among all social media platforms.
• Google Gemini is available in over 239 countries and territories globally.

Chatbot Trends For 2024

What are some of the trends that you should be looking at in 2024? Let’s have a look.

As we already said, chatbots are getting smarter and will dominate the AI industry in 2024.

Here are some of the latest trends that will govern how chatbots will function in the times to come.

• Voice-enabled chatbots will increase in 2024: Alexa, Siri, and other voice-activated assistants are altering how customers engage. Chatbots are currently utilizing these technologies, which will eventually enhance user experience and consumer satisfaction.
• Chatbots will receive more payments: In 2024, more businesses will use chatbots integrated with payment gateways like Paypal, Stripe, and Razorpay and give customers the option to pay directly.
• Chatbots for Post Sales engagement: So chatbot interaction during the purchase process is very common now, but in 2024, chatbots will help businesses re-engage customers even after the buying process is done.
• Chatbots for delivering real-time insights: Businesses will employ artificial intelligence in 2024 to create chatbots that can provide insights and informative content. This will make it easier for customers to learn about new specials, discounts, and promotions.
• More chatbots on Social Media: As marketers utilize chatbots to maintain an active presence on social media and foster a more personalized relationship with consumers, the usage of social media chatbots is anticipated to continue to grow in 2024.

Conclusion: The Chatbot Industry Is Valued At $7 Billion In 2024

At a CAGR of 23.7%, the Chatbot industry will reach the $10 billion mark in 2025. More than 25% will completely rely on Chatbots by 2027. This data shows the remarkable growth in this industry. 

Chatbots are able to reduce abandoned carts by 30%, and they can also handle 70% of conversions. Since most customers rely on chatbots over human agents, it is the right time to adopt the technology for your business.