By the end of this year, the market for chatbots in the retail sector will reach $12 billion in investments and is expected to grow to reach $72 billion by 2028. An increase of +470%, mainly due to the success of solutions such as ChatGPT.
Chatbots and retail, investments at +470% in the next 5 years
This estimate, reported by Corriere delle Comunicazioni, comes from Juniper Researchwhich reported those figures in the report “Chatbots: Market Forecasts, Sector Analysis & Future Strategies 2023-2028”. According to the report, the470% increase it will be driven by the emergence of “open” linguistic models offering economic benefits, in particular ChatGpt. And it will be especially significant in regions like North America and Europe.
The language models are then implemented in the chatbots to automate functions such as customer support, marketing and payment processing. The report predicts that the development of “open” language models will become a key factor in the growth of chatbot adoption. Especially among small and medium-sized retailers.
By 2023, according to Juniper Research, Asia-Pacific will represent85% of global retail spend is via chatbot, despite the fact that it represents only 53% of the world’s population. This is thanks to apps like WeChat, LINE and Kakao.
However, the report predicts that these open source models will also bring the novelty outside the East Pacific area. By 2028, retailers in North America and Europe will also adopt chatbots in their retail operations.