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10 chatbot trends that will transform your business in 2023

Engati Team
last edited on
September 26, 2023
10-12 mins

Table of contents

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chatbot trends

What are the chatbot trends for 2023?

With AI chatbot trends and market outlook on the rise, it is very crucial for businesses to adopt the way they engage with customers.

The new year is seen as the beginning of new opportunities. This also implies more potential for newer AI technologies, advancements within the existing technology tools and growth in the market.

Artificial Intelligence (AI) re-examines how businesses interact internally as well as with consumers. To allow machine learning and dynamic analysis of automated business communications, AI is crucial.

The trends in chatbots project that there will be a shift from simple customer-based queries to more advanced real-time interactions based on computational modeling. Business Chatbots have been growing dynamically in the past few years, and have managed to take over many sectors and internal roles in the organization. If you’re an entrepreneur, following the latest AI chatbot trends will help you scale faster and grow your brand visibility.

Key chatbot stats for 2023

Chatbot growth across years
Chatbot growth

Gartner says that in the next couple of years, Artificial Intelligence (AI) will be a major consumer experience income stream. Customer care chatbots will be used by 47% of organizations and virtual assistants will be deployed by 40%.

The growth in on-demand messaging has changed customer contact tastes. More companies integrate chatbots into their workflows. Bots are a critical resource to help improve customer experiences and deliver great customer service. The way businesses connect with current and prospective customers is transformed by chatbots.

These are statistics for the current chatbot trends in business:

  • Industries like banking, healthcare, education, travel, and real estate benefit the most from chatbots. (Chatbots Life, 2018)
  • By 2020, some type of chatbot system is estimated to be adopted by 80% of businesses. (Outgrow, 2018)
  • Chatbots can help businesses save as much as 30% of customer support costs. (Invesp, 2017)
  • Chatbot market value went up to $703 million in 2016. (Outgrow, 2018)
  • More than 50% of customers anticipate that businesses are open 24/7. (Oracle, 2016)
  • Both, the millennials and generation Xers are familiar with chatbots. (Chatbots Magazine, 2019)
  • There are more than 300,000 active chatbots on Facebook. (Venture Beat, 2018)

Are chatbots growing?

With close to 70% of survey respondents saying that they wouldn’t mind talking to a robot to resolve their queries, the future of chatbots seems bright. Big brands are now realizing the opportunities that come with joining the space. For example, a Facebook Messenger bot will help you make hotel room reservations through their hotel chatbot and will recommend the most competitive rates. The transaction is simple and cost-effective for both – the hotel as well as the customer.

Next in line are multiple scenarios that are going to be a big hit in the chatbot market 2020-

  • Soon Chatbots will replace mobile apps as we can already see some level of saturation in the application market. In fact, more and more organizations are strictly shifting their focus to AI-powered bots workflows to run business strategies as it proves to be more efficient.
  • AI-powered conversational UX is the next big thing for enterprise businesses. "CUX is a newer version of UX design". And it’s expected to gain more significance in the next few years. Businesses are focusing on brand persona development, personalized content, and guided conversations to help users reach their goals faster. Overall, this helps keep up sales, search rankings, etc.
  • Businesses are working towards creating an experience that goes beyond customer service. In fact, chatbots will help businesses cut costs by around $8 billion by 2022. We will see more of chatbots in the field of CRMs, online engagements, etc.
  • People now use social media more than they stay on mobile apps. Today, with more than 100,000 Facebook Messenger bots being used in over 200 countries, we know where we’re headed in the future.
Machine Learning in Speech Recognition for voice search
Machine speech recognition

There are endless possibilities in the chatbot market

A combination of artificial intelligence, a good-looking user interface, and well-thought-out integration is what makes a chatbot a big hit in the market.

We’re looking at a future where your chatbot will help you pick a t-shirt or a dress that goes well with your footwear. Or if you’re preparing a grocery list for something you’ll be preparing for dinner then your chatbot will remind you in case you are forgetting something.

Moreover, conversational AI tools such as chatbots have now become smart enough to talk, thanks to the voice technology in chatbot advancements. Digital voice assistants such as Siri, Google Home, Alexa, etc are anyway taking over and building an easier life for you.

Isn’t it a perfect example of a great and personalized customer experience?

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Top chatbot trends that will transform your business in 2023

Implementing AI chatbot solutions in the near future will expand its knowledge base. The statistics of the business chatbots indicate that bots are much more willing to match human behavior and offer additional services. Here are the upcoming business chatbot trends that will push your company towards the next scale.


Chatbots are getting more common

Chatbots have successfully streamlined customer care, marketing, sales, HR, and many other functions. Surprisingly, they’re being used to streamline individual or everyday activities as well, such as exercise, parenting, kids, e-learning, etc. Exercise chatbots are being developed to discover user preferences and create a customized chatbot experience. While engaging the user with their weekly fitness routine, it won't be time-consuming.

Chatbot technology is one of the most popular coaching trends, it helps in simplifying the technique of eLearning., which helps by simplifying the technique of coaching. Such smart bots are often used as virtual assistants.

It turns out that chatbots are the most revolutionary way to bridge the gap between technology and education. So, coaches can take advantage of this opportunity and use chatbots for coaching to display their Coaching agreement template and provide their services Implementing chatbots provides the student with the tutor with an interactive learning environment far similar to the one-to-one. So, coaches can take advantage of this opportunity and use chatbots for coaching to display their Coaching agreement template and provide their services.


Use of AI in customer support

Chatbots, digital assistants, texting, and other new technologies are already driving the development of call centres around the world.  Businesses can reduce customer service costs by up to 30% by introducing conversational chatbot, according to Chatbots Magazine.

Consumers prefer chatbots
Why do consumers prefer chatbots?

Chatbot Trends are aimed at significant cost savings when companies upgrade from inefficient IVR technology to AI. Bots without human involvement can handle simple requests such as changing a password, requesting a balance, scheduling an appointment, etc.

The call centre depreciation rates are twice the average of all other industries combined. Bots can greatly reduce the number of human agents required and also improve on employee attrition ratio which is due to the repetitive nature of routine calls. It can be expensive to employ staff 24 hours a day in your contact center.

Adding resources to support multiple business lines and languages will increase the headcount to handle customer questions 24 hours a day.

  • Business process automation:Automating the business with Telecom chatbots helps to rapidly reach customers and provide a better experience. Without human involvement, bots can handle first-level queries easily.
  • Sentiment Analysis:By identifying the purpose of the call and improving customer experience, data can be collected with AI to gain the context of communication in order to offer faster solutions.
  • Streamline call center experience:Customers prefer businesses that have chatbot support. 47% of users are open to buying products via chatbot. The chatbot stats show that chatbot is the easiest way to interact with businesses that most consumers trust.
  • Recommend Products and Services:Chatbots can help you manage the efficiency of your agent by scrutinizing them while interacting with customers and advocating them. They can also recommend products and services automatically to your customers and take off the task of manually sending in recommendations.


Chatbots will be more human

It is inevitable that the chatbot industry will become the driving force of business communications. As per Global Market Insights, the overall market size for chatbots worldwide would be over $1.3 billion by 2024. Keeping this in mind and starting to catch up with consumer expectations, companies are now more focused on creating sentient-indicting chatbots with the support of machine learning, artificial intelligence (AI) and natural language processing (NLP).

Chatbots with a more conversational AI will,

  • Develop better relationships with customers, providing customized and tailored customer experience.
  • Boost the brand's customer experience and enhance customer loyalty.
  • The understanding of the customer to receive positive feedback and build a satisfied customer base is affected.

Voice bots are becoming mainstream

voice chatbots
Voice chatbots are growing in popularity

A research study says that online customers are gradually using communications channels which consist of both d and text-based interfaces as their preferred method of communication. Voice recognition software is continuing to improve reliability and it is being applied to by specialized services.

Both voice-based and text-based conversational user interface (CUI) becomes a preferred way to access digital services across industries. They provide clients and employees with the best solutions in different areas. It can help in different sectors, such as education, insurance, travel, and financial services. Voice bots are gaining more popularity by the day and are predicted to be the future chatbot trend, the reason why?

  • Texting can be time-consuming.
  • Text can sometimes be monotonous when voice bots require automated, intelligence-based interaction with customers.
  • Voice-enabled bot, you can provide your customers with reliable data insights. It also helps to provide the correct information in real-time.
  • Voice bots offer new customization opportunities that reduce the problems faced while addressing customer needs.

Voice bots are indeed a great way for businesses to use conversational automation and connect with a humanized level.


Messaging platforms as a growth driver for chatbots

More preferred is the concept of conversational trade as it encourages buyers to shop with chatbots online. Messaging platforms enable companies to revive their approach from branding improvements to deliver the best customer service.

Over time, more and more companies will embrace messaging systems to improve customer engagement and deepen customer loyalty as these platforms will have strong bot capabilities and an integrated approach over different business functions.

With business chatbot capabilities of conversational AI on messaging sites, companies can push-

  • Brand awareness:Market strategists recommend using bots as it increases brand exposure and retention of buyers. The quick response to customer queries is one of the most impressive facts behind the increasing chatbots.
  • Customer support:The majority of chatbots can engage customers in the odd hours by responding to their simple queries. As AI improves, bots can become more intelligent in tailoring their individual responses.
  • Engagement and marketing:Customers prefer businesses that have chatbot support. 47% of users are open to buying products via chatbot. The chatbot stats show that chatbot is the easiest way to interact with businesses that most consumers trust.
  • Sales and Lead Generation chatbot:Chatbots can be the best channel for automating your sales and leading the production process by nominating your prospects to lead in your website and social channels


More use-cases for customer demands

Chatbots are no longer restricted to companies and various business verticals, but they also have significant cases of use for consumers.

Ubisend report says that 1 in 5 customers will consider buying a chatbot from goods and services. Whether it is food, electronics or clothing, online orders are treated promptly by chatbots.

With the growing opportunities in the world, businesses and organizations are going to experiment with chatbot technology to create their own innovative chatbot use-cases and make space for automation in their business applications.


Chatbots will automate payments

Chatbots radically change the way e-commerce businesses serve customers, handle lead generation projects, and automate transactions, delivering better conversational experience. Chatbots Magazine found out that 67% of U.S. millennials said they are likely to buy brand products and services using a chatbot.

What is the future of the chatbot industry, you wonder? It is such that companies will automate simple payments and allow users to pay directly through live chat or Facebook Messenger apps. The instant process makes the customer satisfied and increases the happiness of the company.

Here are some of the main benefits of accepting payments from Facebook Messenger:

  • A good way to sell conversationally–helps the clients to ask questions and recommend the best option according to their needs.
  • Trust is a powerful word– so many people rely on Facebook Messenger to prevent credit or debit card security issues.
  • Customers can buy directly from Messenger–to make the final transaction, the customers don't have to leave their phone.
  • Cost-effective – Compared to traditional channels such as live chat and call centers, it is cost-effective.
  • Effective scalability – it is simple to scale – this ensures you can sell products directly through your 247 bots automated Messenger series.


Chatbots for HR and internal enterprise use

Chatbots for HR and internal enterprise
HR chatbots

In addition to managing customer requests effortlessly, chatbots have tremendous business value by streamlining internal business processes from small business to big organizations.

There are many use cases for AI chatbots with each model implementation following a common goal–to enhance the user's experience and performance.

Here's how company-wide chatbot patterns can be used:

  • Human Resource:HR Chatbots can be used to manage your employees ' momentum, address essential HR-related questions, and complete transactional HR services.
  • Internal help desk:Chatbot can handle common queries and work on complex queries by IT help desk workers. The bot is acquiring the responses to repetitive queries and increasing responsiveness.
  • Onboarding employees:Onboarding is a tedious and time-consuming task. By answering screening questions and documenting the responses, chatbots will begin the interview process. It also goes by company policies to guide new hires.


More chatbot apps

The global chatbot market is expected to hit $1.23 billion by 2025, an annual growth rate of 24.3 million, according to a study by Grand View Research. This chatbot market forecast makes it clear that companies around the world are keen on developing chatbots and using them to engage their employees and customers.

Online AI chatbots are just one of those trending technologies that have recognized and eased the common problems that businesses have encountered these days, and to scale and support business teams in their customer relationships.

In the future, more and more brands will be building applications. Bots are able to gather information and assess appropriate actions to take. The communication level has risen with the easy integration of bots within mobile apps. For example, an app like Instagram uses AI to provide its users with meaningful content.


Better sentiment analysis to understand chatbot behaviour

Chatbots are intended to imitating human-based support and providing the right answers based on queries. However, bots can't really get the exact picture into the user behaviour and their journey without a deeper integration with your user data.

Analysis of sentiment is important to train more human-like chatbots.

When chatbots become more communicative and users who don't always know they're talking with a bot continue to extend and express their feelings in their replies. Just like a well-trained team of customer care to conduct an evaluation of feelings. For all the customer insights, chatbots can collect, normalize and aggregate customer feedback data for further analysis.

Support leaders who have already availed of the benefits of chatbots (68%) said they will plan to invest in more of them in 2022 (and those companies are four-times more likely to invest more in chatbots).
- TechRepublic Report on Customer Support in 2022.

Industry-specific global chatbot market

industry specific global chatbot market

The chatbot market is going to penetrate a number of industries. Let’s take a quick look at a few leading examples from the Indian as well as the international market.



IBM Watson, Nuance Communications Inc., Artificial Solutions, Creative Virtual Pvt. Ltd., are among the major industry players operating in the global chatbot market. The data forecast is supported by key market dynamics, which is helpful in evaluating opportunities available.


BFSI (Banking, Financial Services & Insurance)

HDFC Bank launched its own chatbot for Messenger to integrate conversational banking, allow customers to transact for bill payments, recharge, travel booking, and more.

ICICI Bank has launched its own bot, named iPal, which is said to be handling over 6 million queries with a sterling accuracy of nearly 90%. It resolves most of the customer queries and makes micro-transactions such bill payments, transfers, and other such activities simpler.

Now if we talk about insurance, PNB MetLife launched its insurance chatbot named Dr. Jeevan. The bot helps the users with information regarding their health quotient, and also provides educational videos that are informative and interactive. They have built it on FB Messenger.



The healthcare industry is investing on creating a chatbot technology that can detect an illness by looking at the existing symptoms of a patient. The result will be on the basis of a large pool of data and therefore, it will be authentic and reliable. This will save the patient the hassle of visiting a clinic or a hospital, it will save them money that usually goes away as a consultation fee and it will be cost-effective for the healthcare sector as well, since they wouldn’t have to appoint a support staff.

Endurance is a Russian-based company that is taking patient care to the next level. It is using NLP to enhance its innovation by building a companion chatbot for patients suffering from Alzheimer's. The Healthcare bot will identify any deviation in the conversation and immediately inform the doctor or the concerned family member about it.



Goibibo has recently built a WhatsApp bot that allows passengers to confirm their flight details, pre-book seats and suggest changes, if necessary. The bot conversation is interactive, easy to understand, and triggers an error message every time there is an incorrect entry.

Another travel competitor, ixigo, is hitting the platforms with Facebook Messenger Chatbot and WhatsApp Chatbot with their company chatbot ixibaba. The CEO of the company suggests that chatbot automation is critical in reaching out to a billion users with chat-based information. The company aims at bringing about a travel chatbot evolution by offering a human-like persona that is quick at providing travel planning and booking solutions. It even entertains odd queries with quirky yet sophisticated responses.

Yatra has launched its own FB Messenger bot to help customers search for and book flights. Moreover, Meru is among the world’s first cab service providers to allow customers to book a cab through a chatbot. This is also available on FB Messenger.



Lego’s chatbot is solving the longest prevalent customer problem, which is to choose the right gift. Ralph, the gift bot, provides suggestions and personalized gift recommendations directly to the users via Messenger.

Lego gift chatbot
Lego gift bot

It will ask the user a few simple questions, like their location, age of the person they are buying the gift for, and the budget. Once the user shares the details, they will see product themes and options to choose from. The link is automatically added to the cart once they select the product such that they can directly buy it from the LEGO website.

LEGO chatbot features
Lego chatbot

The LEGO chatbot is available in the UK, US, France, Poland, and Germany and has seen a 6X return on their ad spend. The bot also helped the company reduce its cost per conversion by a whopping 31% as compared to other conversion-based ads.

Another e-commerce industry is Titan. They launched a chatbot on their online store to improve user engagement & attract millennial shoppers looking for convenient ways of online shopping.

Shopsense is another retail technology startup that has launched Fify. It enables customers to discover products & make transactions with an easy-to-use chat tech interface.

The adoption of chatbots by other sectors, like the news & media industry, food & beverages companies, hospitality, etc., is increasing considerably. The demand in the news & media sector is majorly driven by the live news feed connecting the masses to engaging content. While the biggest advantage is engagement and convenience, it does not make the user search for news and shows topics that interest them. Further, the marketing industry is benefitting from chatbot technology because it is helping them derive unconventional marketing opportunities and advances.

P.S here's a blog on why chatbots are a fantastic marketing tool!

Global chatbot market revenue

Here’s a quick look at the monetary benefits when you build a chatbot. The information in the image below covers the major areas worldwide.

global chatbot market dynamics
Chatbot market revenue

Large enterprises are making the best use of current chatbot features

The global chatbot market has been segmented into small enterprises, medium-sized enterprises, and large enterprises. An estimated 50% of small and medium business units engaged in e-commerce have indicated conformance to the revolutionary changes witnessed in customer services and digital marketing. In the meantime, the large enterprises are expected to remain the key demand driver for chatbots generating $626.3 million for the global market by 2024!

They have an undefeated advantage over the rest of the segments because of digital marketing applications. The segment of large enterprises presents massive demand for chatbots owing to the involved activities that facilitate business process automation. In fact, their marketing strategies and social media involvements keep them in the lead dominating position.

From a geographical standpoint, North America will contribute a massive share in global chatbot revenue. It is known to account for a massive $52.7 million as of 2015. The continent witnesses a healthy growth for chatbot market, mainly due to-

  • Awareness
  • Potential
  • Technological advancements
  • Available funds

This is the key force driving it to further improvements. Along with in the US, the chatbot market in maturing in Europe as well in its emerging economies.

Wrapping up

Keep up in the market by staying up-par with the chatbot industry trends. Grow your business in 2023 by following these future smart AI tech-chatbot trends when building your first chatbot with Engati.

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