Retail chatbots will be worth $100 billion by 2023
Retail chatbot interactions are expected to increase more than tenfold over the next five years, with retail sales resulting from chatbot interactions to set to top $100 billion.
According to new data from Juniper Research, the number of retail chatbot interactions will skyrocket from just 2.6 billion this year, to 22 billion by 2023.
What’s more retail sales resulting directly from customer interactions with chatbots will jump from $7.3 billion (£5.2 billion) in 2019 to a whopping $112 billion (£86.2 billion) over the same period.
The research also suggests that chatbots could dramatically reduce costs for retailers, providing an annual saving of $439 million globally by 2023, up from just $7 million this year.
Chatbots, artificially intelligent software that interacts with shoppers online via a message chat, have already been adopted by leading retailers including H&M, Lidl, Burberry and Whole Foods.
Juniper’s research has suggested that retailers who don’t adopt the technology in the near future will face major challenges from those that do.
“By embracing automated customer service with chatbots, retailers can act in a more flexible and efficient way. The wider retail market means that chatbots are no longer a luxury, they are essential”, Juniper’s Nick Maynard said.