A new study from Juniper Research predicts that the global revenue from conversational AI services will grow from $14.6 billion in 2025 to more than $23 billion by 2027.
Among the drivers for growth are specific technological advancements such as generative AI, agentic AI frameworks, speech recognition, and improvements in contextual awareness. These advancements, along with reduced cost and cost predictability of conversational AI services and increased consumer demand for conversational messaging, are fueling the industry's growth.
Agentic AI
The new report, Global Conversational AI Market 2025-2029, underscores that agentic AI frameworks will automate tasks and increase cost reductions for larger enterprises. The technology will help enterprises enable more intelligent message management and message personalisation and improve security.
"Juniper Research, therefore, believes that now is the time for conversational AI vendors to start investing in agentic AI and to form partnerships with AI vendors that will help them to launch this technology. However, we do not believe that agentic AI frameworks will contribute to much of the growth in the conversational AI market in 2025. Instead, conversational AI vendors must ready themselves for whe n enterprises are ready to implement this technology," the report noted.
Senior research analyst Molly Gatford commented: "Conversational AI vendors must carefully moderate the outputs of agentic AI models during early-stage implementations. Issues around liability arising from hallucinations or erroneous communications must be avoided before enterprises' trust in agentic AI can be established. This will best position conversational AI vendors to capitalise on this substantial revenue growth over the next three years."
