AI for Customer Service Market Size Worth USD 117.87 Billion by 2034 | CAGR: 25.6%

The global AI for customer service market size is expected to reach USD 117.87 billion by 2034, according to a new study by Polaris Market Research. The report “AI for Customer Service Market Size, Share, Trends, Industry Analysis Report: By Product, Technology (Generative AI and Others), Customer Interaction Channel, Deployment Mode, End User, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

AI for customer service refers to the use of artificial intelligence (AI) technologies, such as chatbots and virtual assistants, to automate and enhance customer support, improving response times and overall customer experience.

AI for customer service enables businesses to deliver personalized interactions based on customer data, preferences, and past behavior. AI systems track individual customer journeys and use this information to offer tailored solutions, making each interaction more relevant. For example, AI recommends products, resolves issues quickly, or even suggests troubleshooting steps based on a customer's previous interactions. This level of personalization helps build stronger relationships, increasing customer satisfaction and loyalty. Personalized experiences are also more likely to lead to repeat business, making AI-driven customer service essential for companies looking to improve their brand image and customer retention, thereby driving AI for customer service market expansion.

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AI for customer service market solutions are being increasingly integrated across various platforms, including websites, social media, mobile apps, and more. This multi-channel approach ensures that customers have access to help through their preferred communication channel, whether it's messaging on social media or using a chatbot on a company's website. AI can provide consistent support across all these touchpoints, making sure customers receive the same level of service no matter how they interact. The ability to seamlessly transition between different platforms also improves the customer experience, as they can engage with the business in a way that feels natural and convenient to them.

AI for Customer Service Market Report Highlights

• Based on technology, the generative AI segment dominated the AI for customer service market in 2024, as it improves the quality of customer interactions by creating personalized responses
• By product, the chatbots and virtual assistants segment is expected to witness the fastest growth during the forecast period due to their ability to improve customer interaction and streamline support.
• In 2024, North America dominated the AI for customer service market due to the presence of a large number of businesses that require efficient customer support.
• Asia Pacific is expected to record a significant share during the forecast period, driven by the region’s expanding digital economy and tech-savvy population.
• A few of the global key market players are Microsoft, IBM, Google, AWS, Salesforce, Atlassian, SAP, ServiceNow, Zendesk, OpenAI, and Sprinkler.

Polaris market research has segmented the AI for customer service market report on the basis of product, technology, customer interaction channel, deployment mode, end users, and region:

By Product Outlook (Revenue – USD Billion, 2020–2034)

• Chatbots and Virtual Assistants
• AI-Driven Ticketing System
• Sentiments and Feedback Analysis Tools
• Recommendation Systems
• Others

By Technology Outlook (Revenue – USD Billion, 2020–2034)

• Generative AI
• Others

By Customer Interaction Channel Outlook (Revenue – USD Billion, 2020–2034)

• Text and Email
• Voice
• Video
• Omnichannel
• Others

By Deployment Mode Outlook (Revenue – USD Billion, 2020–2034)

• Cloud
• On-Premise

By End User Outlook (Revenue – USD Billion, 2020–2034)

• BFSI
• Government and Public Sector
• Telecommunication
• Retail and E-Commerce
• Others

By Regional Outlook (Revenue – USD Billion, 2020–2034)

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Argentina
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa
  • Rest of Middle East & Africa

AI for Customer Service Market Report Scope