Conversational AI Market: 5 Major Trends

Conversational AI Market Trends

The use of AI in enterprise business has grown at a fast pace and each year more AI-projects are being initiated. A significant part of these projects focuses on conversational AI.

We’ve listed 5 major trends in the conversational AI market that we’re seeing right now:

  1. Maturity in the Market for Conversational AI Solutions.
  2. Reuse of Conversational Data to Improve Solutions.
  3. Shift from Chatbots to Advanced Conversationally Intelligent Solutions.
  4. Existing Conversational AI Solutions Running out of Steam.
  5. Migration from Failed Conversational Technology.

As enterprises begin to mature in the market and gravitate to smarter conversational AI solutions that bring true value, they will leave failed solutions behind and migrate to proven technologies – technologies that can continue to improve and build solutions across their businesses.

Here’s a deeper dive into each of the 5 major trends:

1. Maturity in the Market for Conversational AI Solutions.

We’re seeing a huge maturity in the market, and that’s being measured by organizations beginning to realize the value they can have from conversational artificial intelligence, and it’s also coming from enterprises trialing, testing and failing with different solutions that exist.

Now CIO’s (Chief Information Officers) are being asked to take control of what’s quite a complex and chaotic landscape and build centers of excellence which allow organizations to build out use cases that will work across their business.

For example, we’re seeing our professional services consultants (who 12 months ago were actually building out the conversational AI projects and solutions for our customers) now providing support to these centers of excellences and they’re being asked to mentor, provide expertise and guidance for how an organization should be deploying these solutions.  This illustrates a definite shift and clear sign of maturity.  [Russ Tarr – VP Sales, EMEA]

2. Reuse of Conversational Data to Improve Solutions.

The second trend is all around the reuse of conversational data.

When you and I speak in a humanlike way, we reveal an awful lot about what we’re thinking – our likes, dislikes and what we’re looking for.

You can use that information to truly get into the minds of your customers to really understand what they’re thinking, and to use that data and knowledge to better improve your products and services and improve your conversational system as part of a closed loop machine learning environment.

As a result, our customers are increasingly recognizing the value of this conversational data. [Andy Peart – CMSO]

Read how Widiba takes intelligent chatbots to a new dimension with its virtual reality banking app which has customers giving the company a 4.8/5 on its “happiness index”.

3. Shift from Chatbots to Advanced Conversationally Intelligent Solutions.

We’ve already seen geographies including the Nordics, Germany, Holland and the UK be quite mature markets, but we’re seeing a definite shift in countries like Spain and Italy as they too mature and look for more conversationally intelligent solutions.

Six months ago, these markets were looking at FAQ chatbots a lot more, and I think they’re beginning to realize that they [FAQ chatbots] don’t genuinely add demonstrable business value. So, there is a real maturity there as well. [Russ Tarr – VP Sales, EMEA]

4. Existing Conversational AI Solutions Running out of Steam.

What we’re finding now, in terms of trends, are customers coming to us with problems with their existing deployments – they’ve tried or prototyped other conversational AI technologies that are running out of steam.

They’ve tried working with some competitor technologies – for example, working and building out solutions with a broad scope and lots of intents, and they’re truly struggling.

The great thing about Teneo Developers is that, for these organizations that have tried to build solutions themselves, Teneo Developers is giving them access to the information and technology by which they can go further and increase the quality of the bots they’re building.  [Darren Ford – VP Global Customer Services]

5. Migration from Failed Conversational Technology.

The other thing that has been happening in the last couple of months is that we are getting customers who have invested quite heavily in some cases, in other technologies, such as IBM Watson, or Microsoft Luis.

They’re struggling and not able to scale those deployments or get the business benefit, and we’ve been asked in the last month on 4 or 5 different occasions for a proposal to migrate fully from a competitive technology or reuse some of the competitor technology assets as customers don’t want to lose the investment they previously made.

Customers are beginning to understand the need for a comprehensive solution like Teneo to orchestrate a wonderful dialog and get the value they were not able to get from other technologies. [Darren Ford – VP Global Customer Services]

Are you starting a next generation conversational AI project and looking for the right platform for you? Get a free 90-day trial of Teneo and find out the power behind truly advanced conversational AI solutions.

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