Chatbot Statistics: How Many Companies are Using Chatbots?

Most websites are putting into use chatbots now more than ever before.

Fascinating Facts (Editor’s Pick)

  • Chatbots worldwide will drive business communication by the year 2024, with a market size of around $1.3 bn.
  • Chatbot implementation is predicted to be spread in more than 80% of businesses across the world.
  • Over 90% of HR teams agree chatbots will be incredibly important for going forward.
  • More than 55% of customers prefer their queries to be handled by a chatbot because of their response speed.
  • More than 70 percent of Millennials (worldwide) will occupy the future workforce.
  • More than 40 percent of companies using chatbots are B2C companies.
  • There are much more than 300.000 chatbots, just on Messenger—hence, five bn people are using messaging apps.

I’m sure you’ve noticed that most websites are putting into use chatbots now more than ever before.

This is why it is time to end the many questions you have concerning chatbots in general. Questions like how are chatbots helping us and the economy, or are customer care representatives getting replaced by chatbots for good, etc.

Before we get into more details, let me give you an overall view of what will be elaborated on in this article. In other words, this article’s focus is on chatbots, the trends among them, numbers: how many companies are using chatbots nowadays, how chatbots are implemented into the customer service and business communication world, and lots more.

According to research by Insider Intelligence, retail spend using chatbots is expected to hit $142 billion by 2024. There are many applications of chatbots, so in the following lines, we will find out just how valuable these chatbots are within the business context.

Trends on Chatbots

This section of the article is dedicated to some of the chatbot trends out here that you should be aware of, especially if you plan to harness the power of chatbots for your own business.

1. Business Communications (Chatbots are Expected to Drive Business Communication)

Sources: Invespcro, Medium, REVE Chat, linchpin SEO, Intellectyx

Artificial Intelligence or AI has proven to be a vital element in the business sector, even more now in 2021.

Let us rely on Intellectyx’s information that chatbots worldwide will drive business communication by the year 2024, with a market size of around $1.3 bn.

The most recent analysis on the business market indicated that almost 90% of small businesses, enterprises as well, are accepting the digital-first business strategy. This is also the year when the chatbot implementation is predicted to be spread in more than 80% of businesses across the world.

Furthermore, by answering up to 80% of routine questions, chatbots automate the communication process. Thus, allowing companies to save on their customer service costs by rushing the response times and giving your in-house agents more free time to focus on more challenging tasks.

2. Growth Through Messaging Platform

Sources: HubSpot, Sprout Social

As already mentioned, chatbots are becoming more common in businesses, and it’s easy to see why. Industries such as healthcare, education, real estate, banking, and healthcare have all benefited from chatbots.

The latest study by HubSpot stated that around 50% of consumers wouldn’t mind communicating with a business via messaging apps and chatbots. Why would they? After all, chatbots are at your disposal 24 hours, every day, and the response waiting time is reduced to the minimum.

Take a look at the following chatbot stats that support the growth businesses are receiving by incorporating them in their daily business interaction:

  • Around 30% of consumers are convinced they will get to buy some necessary things via chatbots.
  • More than 55% of customers prefer their queries to be handled by a chatbot because of their response speed.
  • Nearly 100% of people are certain that chatbots prioritize the importance of customer service queries. Hence they prefer chatbots assistance.

3. Queries Handled by Chatbots

Sources: Invespcro, Acquire, HappyFox, SmallBiz Genius

Chatbots have the advantage of taking on an unlimited amount of customer queries all at once. On the contrary, a human customer support executive can only tend to one customer at a time.

Therefore, recent reports back up this statement by indicating that chatbots saved aside from up to 30-50 percent of the company’s costs related to customer service. Further data revealed more than a billion people worldwide are taking advantage of chatbots, and over 30 percent of them are drawn to chatbots because of their quick-to-react interaction.

4. Online Payments

Sources: Medium, Singularika, Acquire

By adding a price and a ‘buy button, a chatbot can be programmed to accept payments, as simple as that.

For example, Telegram chatbots payments are very popular and available in over two hundred countries. This has proven to be a quick and efficient way to allow customers to get their payments processed without having them wait for too long. In addition to this IBM’s report comes in handy—it revealed over 55 percent of their customers use chatbots options when deciding what’s the best plan for them. On the other hand, 77 percent use this option to pay their bills.

Or let’s look at the chatbots practical usage in the Insurance branch:

  • More than 70 percent of customers are open to receiving advice on which insurance policy to go for.
  • Whereas nearly 80 percent are being advised on investment asset allocation.
  • And roughly 70 percent get advice on how to go about their retirement plan.

These are just a tiny portion of the many excellent examples that gladly take advantage of the chatbot’s effectiveness and speed.

5. Human Resource

Sources: V-Soft Consulting, AI Business

What gives chatbots an edge in maintaining a one-to-one relationship with potential candidates and carrying out follow-ups without being told.

A study on AI chatbots unveils that over 90% of HR teams agree chatbots will be incredibly important for going forward—when it comes to directing employees and helping them find the information they’re looking for.

Consequently, two-thirds of the respondents declared their employees are comfortable while using chatbots, which comes in handy while conducting their daily tasks.

In addition to those mentioned above, a Jacob Morgan research on employee’s experience stated that companies who invest more in their employees also appear almost thirty times more than others on the Fast Company’s List.

6. Employee Onboarding

Sources: TalentLyft, Glassdoor

Following numerous research on today’s employee onboarding, it is estimated that more than 70 percent of Millenials (worldwide) occupy the future workforce.

A research carried out by Glassdoor indicated how every new job opening attracts an average of no less than 250 resumes. That’s a significant number for an in-house HR team to handle. Therefore, chatbots provide a unique way to streamline the entire process—from employee recruitment to employee onboarding. Over 55 percent of job-seekers felt comfortable interacting with chatbots during the recruitment and employee onboarding process. This is opposed to slightly over 40 percent of potential employees who preferred a live person to guide them through the recruitment process.

7. Internal Help Desk

Sources: IBM Watson Blog, The Financial Express

Chatbots are great for helping new employees find information on various topics, such as answering queries related to policies, annual leaves, government holidays, tax benefits, and payroll.

As we mentioned in one of the previous sections, chatbots can help save time by handling as many as 80 percent of the most frequently asked questions within a matter of minutes.

For instance, let’s have a look at the results Autodesk (empowered by The Watson Conversation platform) gained on productivity and efficiency:

  • Nearly 100 percent improved response time (38h – 6 mins).
  • A decrease from $15 to $200 on human agents, opposed to virtual agents’ dollar worth.
  • Virtual agents can handle at least 30 thousand customer support inquiries a month.

8. Retail Sales by 2023

Sources: Marketing Dive

According to some estimates, chatbots are expected to drive retail sales to a whopping $112 billion by 2023. That means an increase of 2x more, from around $7.5 in 2021. Further data also indicates a jump in chatbot interactions to more than 20 bn by 2023. That itself is off the charts since this year is expected to hit only 2.6 bn.

However, the good news doesn’t stop there either. Retailers are expected to enjoy cost cuts of up to $439 bn by the same time. Compared to the seven million dollars for 2021.

9. Global Chatbot Market by 2024

Sources: Linked in/Artificial Solutions, MarketsandMarkets

As per Markets and Markets, the global market size for conversational AI is predicted to reach around $16 bn by 2024, at a Compound Annual Growth Rate (CAGR) of 30 percent. Whereas the size of the same was a bit over four bn in 2019.

However, an essential piece of information is the mere fact that artificial intelligence as such is reckoned to redefine what we knew to be a user interface until now. Hence, more than half (fifty percent) of user touches will be extended by speech, language, and computer vision.

10. Chatbots in Customer Service

Source: SmallBizGenius, Salesforce, verloop.io

The implementation of chatbots in service organizations worldwide is at a constant but high-speed pace, no doubt.
Statistics on customer service and chatbots revealed over 50 percent of service organizations have intentions of using chatbots for customer service in their businesses in the following eighteen months. This data implicates an astonishing 136 percent increase in the rate that augurs quite a role in the sphere of technology (looking into the near future).

Another very important reason why chatbots are a perfect addition to the customer service department is instant assistance. In other words, statistics showed almost 65 percent of customer agents who work with chatbots to be more successful at their work. These agents have time to dedicate to more complicated work-related problems. On the contrary, around 50 percent of agents can’t say the same about themselves (those working without chatbots).

11. How Many Use Chatbots?

Sources: Boomtown, BACKLINKO, AI Multiple

Chatbots are to be found (almost) everywhere: from ordering food online to listening to your favorite music. Most probably, you’ve come across a chatbot by now while using various online services. B2B and B2C businesses are the ones who take the biggest advantage of chatbots overall. Also, companies that employ fewer than 250 people usually make use of chatbots. On the other hand, 40 percent of companies whose number of staff ranges from one to ten employees aren’t using chatbots as frequently.

With that being said, let us have a look at the fifteen biggest sellers for avant-garde solutions:

Chatbot_Image1

Chatbot_Image2

12. Customer Interactions

Source: SmallBizGenius

A new feature is always greeted with some dose of doubt or with an exciting smile.

Fortunately, the chatbot services were greeted with a smile from nearly 60% of users—whose chatbot experience went beyond what they were expecting to get.

By the look of things, this number is only expected to grow.

13. Chatbot Support System in the Past Year

Sources: Invespcro, Live Person

The latest reports on chatbot usage as a support system denoted the following data:

  • Over 67 percent of consumers used some form of a chatbot for customer support last year.
  • The usage of chatbots with the French, British, and Aussies was reported to be at the highest rate (over 70 percent). Simultaneously, Germans and Americans fall behind with somewhat more than 50 percent of the chatbot usage rate.
  • An incredible 90 percent of US people firmly agreed they’d prefer cooperating with a business that provides quick responses.

14. Companies are quick to replace humans with chatbots

Sources: Invespcro, Arabot, Experience Matters

Most companies are quick to replace humans with chatbots for the mere reason that the latter can perform their tasks 24/7, 365 days a year.

On the other side, a somewhat recent survey on chatbots usage and channels (2019), indicated the following:

  • Almost 90 percent of the respondents emphasized human interaction rather than an AI-based agent.
  • More than 70 percent stated they might stop purchasing from a certain brand if they don’t offer a human customer representative.
  • While slightly over 30 percent are certain chatbots resolve and respond to queries with much ease and speed.

Live agent support vs. Self-service & chatbots

15. Retail Customer Satisfaction

Sources: Help Scout, Quick Sprout, Business Wire

Even though both support systems are efficient and work to meet customers’ needs, there’s still a certain disbalance in preference. Therefore, let us take a better look at both sides, thus make a comparison:

  • Conversations handled by chatbots received a slightly higher satisfaction rating of around 88% than those being transferred to live agent support (around 86%).
  • Almost 30% of consumers are irritated by the detached-robotic responses.
  • No less than 40% of people who use live chat support are more persuaded to buy something (opposed to more than 20% of customers who never had a chat conversation with a retailer).
  • Around 40% of consumers stated having bought something because of the chat itself.
  • Almost 80% of people prefer live chats for the mere reason of the instant response they receive.

Among the majority of things, people feel uncomfortable using chatbots for the following matters:

  • When making transactions (finance handling) – over 80% (large banking) and more than 50% (small banking).
  • For inquiring about medical-related questions – 75%.

16. Millennials Chatbot Experience

Sources: Comm100, Retail Dive, Forbes

Millennials are considered to be more accepting of chatbots for online shopping or finding out information they need.

For that matter, Forbes reports 60 percent of Millennials have had the chance to use chatbots’ assistance so far. That being said, another Forbes report declared 70 percent of them acquired positive chatbot experiences.

Further data also revealed that Millennials’ preferences for chatbot usage are well-integrated in the food ordering feature, with Millennials occupying over 30 percent.

Chatbot Market

17. B2B companies vs. B2C

Source: Boomtown

Chatbot’s presence and implementation are primarily seen in IT companies. In addition to that, chatbots can often be found in B2B industries, opposed to the notable number of sites that are using B2C. And with this being said, also worthy of mention is the fact the United States has the leading role when speaking of chatbot acceptance.

For instance, let’s take companies with no more than 250 employees. These companies tend to use chatbots much more than, let’s say, companies with barely 10 employees. Consequently, companies whose employee numbers range between one and ten occupy around 40% of the total number of companies using chatbots (worldwide).

On the contrary, the number of B2B sites that use a chatbot makes up barely 1 percent.

18. Implementation of chatbots in large businesses

Sources: SmallBizGenius, MediaRoom, Sharpen, L.inchpin

According to a report, nearly 40 percent of major companies have plans to integrate chatbots into their business.

Hence, a Temkin Group study on customer preferences came to an incredible revelation. The revelation pointed to large businesses having a revenue Increase of more than $820 million in the next three years with the sole integration of chatbots into their current business model—this is closely connected with businesses that have reached a minimum of $1 billion in yearly revenue.

Furthermore, almost 40 percent of companies are already using pre-built AI chatbots. For example, research carried out by IBM pointed to almost 40 percent of companies in China, the USA, and the European Union (the UK, France, Germany, Italy, and Spain), are all using AI programs that are pre-built, including virtual assistants and chatbots.

19. The Power of AI Chatbots During the Pandemic

Source: The Official Microsoft Blog, inside BIGDATA, HealthTech

The coronavirus did lead many enterprises (small, big) to incorporate AI chatbot usage fully. Especially since we don’t have a timeframe when this virus is set to leave us alone.

The COVID19 pandemic is giving a significant boost to AI— this is more than understandable since chatbots handling people’s inquiries worldwide have climbed up to more than two hundred percent in particular industries.

For instance, during the coronavirus pandemic, Microsoft’s Healthcare Bot was being used by multiple American companies to respond to their clients—the chatbot so far responded to over 1 million inquiries.

Further data showed IBM marked an increase of 40 percent in the Watson Assistant cloud service from February-April (2020). On the other hand, Google also stepped up with the Rapid Response Virtual Agent (similar to a Contact Center AI).

Used for Purchases/Usage

20. Hotels and Restaurants

Sources: BACKLINKO, Chatbots Magazine

Thirty-three percent of consumers would love it if they could manage hotel/restaurant bookings through a chatbot.
Chatbots are the new kind of digital menus and waiters for people ordering from restaurants. These chatbots go as far as recommending you a wine list that goes alongside your food order.

Pizza ordering has never been manageable also. Nowadays, you can place an order by simply sending an emoji.

21. Online Retail

Sources: 99firms, Juniper Research, Chatbots.Studio

Statistics show that more than 70% of accessible chatbots will be related to retail by 2023. This number is likely to increase further in the coming years, fueled by the growing demand for online retailing.

Therefore, to maintain this statement, here’s a list of how chatbot is being implemented in the retail industry:

  • As 24-hour customer support.
  • They are fully equipped to offer consumers personalized offers (they can use their bonus cards, points, etc).
  • If a problem occurs with your order, chatbots can help you out with it too.
  • It SELLS. This is why you’ll find them very often incorporated with some messenger app.
  • Chatbots go as far as to offer you the nearest route to the shop you’d want to visit.

22. Banking Industry

Sources: Chatbots Magazine, Scand, LIGHT, Medium

Automation, and more specifically, AI-powered chatbots, are the future for the banking industry. In fact, according to reports, banks can save up to 30% on customer support costs.

In addition to the above said, a Salesforce report unveiled the following:

  • Slightly more than 30 percent of finance companies are already hooked on the assistance of chatbots.
  • Around 40 percent of companies are planning on taking advantage of them too in approximately eighteen months. This itself indicates an increase in growth rate by more than a hundred percent.

Furthermore, by 2023 it is estimated to successfully carried out chatbot interactions via mobile banking apps to hit an incredible 79 percent.

In addition to this, here are some of the banks that have implemented and enjoy the incomparable assistance by chatbots:

  • Bank of America
  • American Express
  • HDFC
  • Commonwealth Bank Australia

23. Social Media

Source: ChatBot

Let’s talk statistics:

  • More than 1.2 billion people use social media messaging apps and are willing to communicate with chatbots.
  • There are way more than 300.000 chatbots, just on Messenger—hence, five bn people are using messaging apps.
  • Customers who interact with brands via Messenger gained a much better ROI (30 percent) than those who target brands.
  • The majority of Millennials (over 70 percent) have an improved image of a brand that corresponds to their social media queries.
  • Over thirty-five million US people are actively engaged in voice-activated assistants at least once a month.
  • Almost 50 percent of visitors prefer chatbots as their primary mode of communication regarding customer service-related queries.

24. Chatbot eCommerce Transactions

Sources: 99firms, Haptik

No industry has benefited more from chatbots than eCommerce. And with this being said, we ought to take Juniper’s prediction of chatbots retail transactions reaching a massive USD112 bn dollars by the not far away 2023. Whereas another set of analyses estimate the global chatbot market share will be worth almost USD10 bn dollars by 2024.

Chatbot Revenue

The following is a quick breakdown of the chatbot revenue being generated in the business space.

25. Investment in Chatbot Technology

Sources: DataDrivenInvestor, Spice Works

According to new research by Juniper, chatbots are set to provide businesses help and save more than $8 bn a year (by 2022).

A mere example of how the above-mentioned achievable is what JPMorgan Chase and Co have done. This prominent financial company produced a bot equipped with challenging and complex analyses (legal analyses). Nonetheless, this very same bot made the impossible – possible. How? By doing work well worthy of more than 350.000 hours within seconds.

Apart from solving legal matters, chatbots are also pretty handy when pursuing administrative tasks. It’s no wonder why more than 20 percent of companies fully implement them around the office.

26. Chatbot Saves Business Per Year

Sources: IBM, Comm100, Public Tableau, Cognizant

Many businesses are already experiencing the benefits of using chatbots for their business. Following current reports, businesses worldwide are more prosperous for twenty million dollars nowadays, and they owe this to none other but the chatbot’s invention. And it’s a number bound to rise.

Anyway, let us look better into some of the cost-saving chatbots are responsible for:

  • Decrease in operational costs – the number of calls and messages coming in is most certainly reduced since chatbots have been implemented. Thus, call centers pay a reduced price for inbound calls (thirty-three percent less).
  • Reduced labor costs – about 60 to 70 percent of the overall call center costs are connected to the staff.
  • Cheap, yet available throughout the day – the chatbot’s price stays untouched, no matter the time of use (6 or 60 hours).
  • Increased Customer Satisfaction – around fifty percent of people are using chatbots on a day-to-day basis. A survey conducted by Pelorus indicated over seventy percent of managers on contact centers stated mistakes now have fewer chances of occurring.
  • A study by Tableau stated around 29% of customer care activities in the United States would be carried out by chatbots.
  • Cognizant in 2019 declared that 69 percent of customers preferred chatbots because of their instant replies.
  • According to a UK-based company research, the healthcare and banking industries using bots can save time per customer query (around four minutes).

27. Industries Profiting

With the high level of efficiency and maintenance-free solution chatbots provide, it is easy to see why more and more business owners turn towards chatbots as a more viable alternative than traditional human staff.

The following is a quick breakdown of the industry’s stats for 2019 chatbots related to customer service.

Source: AI Multiple

  • Real Estate – The real estate industry is currently at the front line of industries that have been quick to adopt chatbots into their services, with almost 30% of them using chatbots.
  • Travel – 16% of businesses operating within the travel industry are using chatbots.
  • Education – no less than 14% of educational facilities started using chatbots to communicate with the students and parents.
  • Healthcare – 10% of businesses in the healthcare industry are already using chatbots to deliver a smooth service.
  • Finance – Just 5% of businesses in the finance sector are currently using chatbots for their clients. This number is expected to grow as consumers get more comfortable using chatbots.

28. Benefits

The following are just some of the main advantages for businesses that want to integrate chatbots into their business and marketing strategy:

  • 24-hour service – Chatbots offer companies the opportunity to communicate with customers 24/7. Unlike a human workforce, they don’t need breaks or take days off and always answer customers’ queries.
  • Instant answers – Consumers don’t need to wait long before getting a reply.
  • Consistent answers – Chatbots are powered by AI and are fully automated. Thus, they provide a similar and consistent answer across the board with no room for discrepancies.
  • Increased Customer Interaction – Chatbots are designed to provide a one-on-one service experience where the customer’s questions are answered in real-time.

29. Chatbots in Marketing

Sources: Business Wire, PR Newswire

The global chatbot market is expected to reach more than USD10 bn by 2026. This alone is reason enough for businesses to adopt a strategy that implements chatbots to deal with customers.

With the limitations surrounding humans being used as customer support staff, more and more companies worldwide use chatbots as a more efficient and cost-effective alternative to human customer service personnel.

Countries like America, the United Kingdom, Germany, Brazil, and India are currently at the forefront of using chatbots.

Conclusion

It is easy to conclude the obvious—The chatbot and the use and advance of Artificial Intelligence are a step further into the future. It is such an invention that creeps into every segment of the business world and positively impacts all sorts of industries (globally).

I am sure that I have managed to provide valuable and interesting data to you, like how many companies are using chatbots nowadays, the benefits of using them, etc. Now you know more about chatbots (and I am sure you have been using one at some point). And as for the smaller and bigger companies, I highly recommend you to go ahead and take advantage of this futuristic yet present software.