With AI technology on the rise, chatbots are increasing in popularity among businesses and consumers equally.
Chatbots are used in many industries to complete a range of tasks, such as answering common customer queries, increasing sales, reducing cart abandonment, and guiding customers to navigate the company’s website.
The Chatbots are artificial intelligence (AI) systems that use machine learning (ML) and natural language processing (NLP) to pick context and content from conversations with people.
Chatbots enable customers to engage with brands and services through text, messaging, and speech.
They are tremendously beneficial tools for businesses looking to improve and streamline their customer service while dramatically cutting operational costs of the process.
Many companies started willingly implementing chatbots to improve the customer experience, lower support costs, and accelerate operational processes.
In this article, we’ll discuss the latest chatbot statistics and trends that will help you learn more about chatbots and how they can help businesses to save time and money. Let’s get started!
Key Chatbot Statistics
- Chatbots are the fastest-growing brand communication channel, with the market size increased by 92% over the last few years.
- Almost 1.4 billion people use chatbots globally.
- Chatbots handle 68.9% of customer chats from start to finish.
- A chatbot can answer up to 80% of all standard questions about any industry.
- 67% of the customers interacted with a chatbot in the last 12 months.
- In 2020, one-quarter of the consumers will use chatbots to communicate with a business.
- The top five countries that use chatbots are U.S, India, Germany, UK, and Brazil.
- 41.3% of consumers use conversational marketing tools for purchases.
- 37% of people prefer using a chatbot to get a quick answer.
- 1/3 of the people use chatbots for making reservations.
- Facebook has over 300,000 active chatbots, a three-fold increase from the previous year.
- One in six global customer service interactions is handled by conversational AI.
- 50% of women choose chatbots to communicate when buying something, while only 36.81% of men like to do so.
- 87.2% of the consumers reported having a positive or neutral experience with chatbots.
- 12.5% of the consumers report having a negative customer experience with chatbots.
- Chatbots have a customer satisfaction rate of 87.58%, which is 2% higher than the discussions with human representatives.
- 39% of businesses prefer using chatbots to make their websites more responsive.
- The United States has the highest number of chatbots (36%), followed by India (11%) and Germany (4%).
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1. Chatbots are the fastest growing mean of communication with a brand
The number of active chatbots is growing increasingly as more people have started using online methods for shopping.
According to Drift’s 2020 State of Conversational Marketing report, the use of chatbots as a brand communication channel has increased by a whopping 92% after 2019.
In 2020, 24.9% of consumers used chatbots to interact with businesses, which is 13% higher than the previous year.
2. Almost 1.4 billion people are using chatbots
The advancement of AI has given humans a wide variety of helpful tools, and chatbots are one of them.
Chatbot market statistics show that the technology is becoming more and more popular to the point where 1.4 billion people use them daily.
3. Chatbots generate almost 35-40% response rates
These statistics represent the lower end of the spectrum as chatbots with more engaged consumers can generate response rates as high as 80-90%.
Depending on the industry, chatbots can increase the website conversion rates between 10-100% on average.
4. 69% of the time, chatbots handle full-conversations
Most of you may assume that chatbots are only there to greet customers and provide generic information.
However, chatbot technology is much more advanced than you think and can deal with many complex and personalized tasks, such as full conversations with customers almost 70% of the time.
5. Facebook Messenger has over 300,000 chatbots in-operation
Managing large volumes of customer queries on multiple platforms can be difficult and time-consuming, especially for the social media giants like Facebook and Twitter. However, chatbots can help reduce the workload.
According to the latest statistics, Facebook messenger alone uses approximately 300,000 chatbots to allow companies to respond to queries round the clock.
6. 41% of all business use chatbots for sales
Managing effective customer service on multiple sales channels is a very challenging task as modern consumers are very low on patience and expect instant and personalized responses through chat.
Doing this on large sales is only possible through chatbots, which is why almost 41% of all businesses use chatbots for sales, followed by support (37%), marketing (17%), and other functions (5%). (Source: Intercom).
7. 33% of consumers like using chatbots for reservations
If you are from the hotel industry, this stat is worth knowing. As per data from Drift, around one-third of the consumers prefer making a reservation online rather than speaking to a staff member.
Chatbots make it easier to make reservations for their favorite venues without any hassle.
If you run a hotel or restaurant, you can expect to get more business with the help of chatbots in the next few years.
8. 67% of the consumers worldwide had an interaction with chatbots in the past year
We live fast pace lives, controlled by phones and computers, and chatbots work best in our favor whenever we need t to get quick and accurate answers.
The latest chatbot statistics show that people are adjusting very well to automated support, with almost 67% having used chatbots for customer support over the last 12 months.
9. 70% of white-collar worker interactions would be handled by 2022
It’s not just remote employees or shoppers who took benefit from Conversational AI Chatbots. The community of B2B and white-collar employees also use chatbots to improve their daily tasks.
As reported by Gartner, 15% of the global interactions will be handled by AI technology, including chatbots, and up to 70% of white-collar workers will engage daily with chatbots by 2022.
10. 64% of internet users believe that round-the-clock support is the best feature of chatbots
Among consumers who use chatbots, 64% say 24-hour accessibility is the best feature of chatbots. Chatbot technology comes in handy whenever we need answers about any product or service, regardless of the time.
This is one of the main reasons why consumers think that 24-hour support is the prime benefit of chatbots.
11. 40% of consumers don’t care if they are talking to a chatbot or human
According to the latest chatbot statistics from an article published in HubSpot, almost 40% of consumers don’t care whether they are interacting with a chatbot or a virtual agent as long as they get the help they need.
Some studies have also revealed that many people choose chatbots as their preferred way of communication.
12. 60% of consumers believe that humans are better than chatbots
Some consumers are still skeptical about using chatbots and see them as a cost-saving measure used by the brands.
According to Business Insider, 60% of consumers still believe that humans can understand their needs better than chatbots, and they would prefer to wait for an agent than use a chatbot.
13. Chatbots handle 85% of all customer interactions
The latest data shows that almost 85% of all customer interactions in most industries are handled by chatbots, including online conversations and live telephone calls.
Consumers get automated responses almost everywhere, such as in supermarkets, automatic answers to simple queries online and on the phone, and automated car parking.
14. 58% of the B2B companies use chatbots for customer interactions
Artificial intelligence (AI) is drastically changing the digital marketing landscape, and chatbots are one of the major developments.
According to the latest statistics, 58% of B2B companies use chatbots to make their websites more interactive and get more leads, while only 42% of B2C companies utilize chatbots.
15. 25% of the bigger enterprises, 15% of mid-sized companies, and 16% of small businesses are using chatbots
The latest chatbot statistics show us an exciting trend in smaller businesses. It seems that nearly 25% of the bigger enterprises use chatbots, making them the most frequent users, followed by mid-sized companies with (15%) and small businesses with one to 10 employees (16%).
16. 55% of the businesses generate high-quality leads by using chatbots
Chatbots are not just about saving time and money and offer businesses a unique opportunity to make the most of web traffic and generate high-quality leads.
Chatbots have the highest response rate, which is great for leading your website visitors into your funnel and turning them into customers.
17. Online retail stores have the highest acceptance rates for chatbots
Chatbots are most commonly used in e-commerce as customers are more receptive to the new technology.
A study showed that 34% of e-commerce customers think of chatbots as helpful tools, which is an incredibly high acceptance rate compared to other industries.
18. 75-90% of banking and healthcare queries will be handled by chatbots by 2022
Healthcare and banking are the two industries that are considered to benefit the most from chatbot technology in the future due to the large volumes of human interactions they deal with regularly.
By using chatbots, both industries can expect average time savings of 4-minutes per inquiry which equates to cost savings in the range of $0.50-$0.70 per interaction.
19. 67% of millennials are more likely to buy from companies offering chatbot support
40% of millennials engage with a chatbot daily because they prefer instant answers and conversational experience to speaking with an agent.
According to Chatbots Magazine statistics, 67% of U.S millennials are willing to purchase from brands using a chatbot.
Compared to traditional graphic interfaces, chatbots are fast, available 24/7, and offer a variety of benefits to customers.
20. The average satisfaction rate of bot-only chats is 87.58%
When it comes to customer satisfaction, live chat has the highest satisfaction score of any other customer service channel.
The statistics show that the satisfaction rate of bot-only chats is 87.58%, which is 2% higher than the satisfaction rate for chats that get passed to customer service agents for obvious reasons.
21. Chatbots currently account for business costs saving $8 billion
According to new research, which is anticipating a surge in automated customer service programs as more companies are opting for artificial intelligence, chatbots could help reduce business costs by more than $8 billion per year globally by the end of 2022.
22. Chatbots are more well-received in Europe than in the U.S and Japan
Although chatbots seem to be the most effective mean of communication for both consumers and businesses, not everybody is willing to buy the idea.
Different countries have different responses to AI technology. According to chatbot statistics published by Business Insider, chatbots are more popular in European countries, with 50% of respondents having positive thoughts about them, than in Japan and the U.S, with only 33% and 32% respectively viewing the technology as effective.
23. Chatbots will help save $11 billion annually by 2023
Chatbots can help businesses save on customer service costs by managing day-to-day inquiries and speeding up the response time, answering up to 80% of the general questions.
As reported by Business Insider, by 2023, all of these costs will add up to $11 billion in annual savings. It is an impressive increment from $6 billion in 2018.
24. By 2024, the retail industry will spend over $142 billion on chatbots
Chatbots are increasing in popularity among consumers and businesses alike. As they continue to reduce operating costs for businesses, their market size will continue to expand.
Nearly 40% of consumers prefer interacting with chatbots to a human agent. According to chatbot stats from Juniper research, consumer retail through chatbots will reach $142 billion by 2023.
25. The global chatbot marketing revenue reached $83.4 million in 2021
As per figures published by Statista, the average revenue generated by the chatbot industry in 2021 was around $83 million.
They also calculated the predicted revenue of the industry, which is expected to grow substantially over the next few years to be worth around $434 million by 2027.
Also Read: 18 Essential Branding Statistics
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.