According to a new report from Juniper Research, global retail spending on chatbots is projected to reach $12 billion in 2023 and grow to $72 billion by 2028. The report attributes this growth to the emergence of cost-effective open language models, specifically ChatGPT. These models use large neural networks that are trained on substantial amounts of online information and implemented into chatbots to automate functions like customer support, marketing, and payment processing.
The development of open language models is expected to accelerate growth for smaller retailers who were previously unable to invest in chatbots due to costly AI-based algorithms. An estimated 85% of retail spending on chatbots will be in the Asia Pacific region in 2023, although the report predicts that growth will soon expand to North America and Europe as online retailers in those areas implement chatbots into their activities. By 2028, 66% of the world’s chatbot spending is expected to occur outside of Asia Pacific.
Juniper Research suggests that vendors should focus on targeting online retailers in North America and Europe to maximize potential growth outside of Asia Pacific. These predictions indicate a significant shift in the retail industry toward the use of chatbots and automation solutions in various areas of customer service and marketing.
Frequently Asked Questions (FAQs) Related to the Above News
What is the projected global retail spend on chatbots by 2023?
According to Juniper Research's report, the projected global retail spend on chatbots is $12 billion by 2023.
What is the expected growth rate for retail spend on chatbots by 2028?
The retail spend on chatbots is expected to grow to $72 billion by 2028.
What is the reason behind the projected growth in retail spending on chatbots?
The emergence of cost-effective open language models that automate functions like customer support, marketing, and payment processing is expected to drive growth for chatbots in retail.
Which language model is said to be driving growth for chatbots in retail?
ChatGPT is one of the open language models that are driving growth for chatbots in retail.
Which region is estimated to have the highest retail spending on chatbots by 2023?
Asia Pacific is estimated to have the highest retail spending on chatbots at 85% in 2023.
Is the growth in retail spending on chatbots expected to expand outside of Asia Pacific?
Yes, the report predicts that growth in retail spending on chatbots will expand to North America and Europe as online retailers in those areas implement chatbots into their activities.
What advice does Juniper Research give to vendors looking to maximize potential growth for chatbots?
Juniper Research suggests that vendors should target online retailers in North America and Europe to maximize potential growth outside of Asia Pacific.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
