23 Top Chatbot Statistics: Usage & Trends

An updated list of important chatbot statistics that you may check before you start using chatbots for your business.

Share:
Top Chatbot Statistics

If you’re planning to go for Chatbot technology to generate more personalized and effective text-based conversation, these crucial Chatbot statistics might come in handy.

Chatbots have taken customer service by storm and it isn’t going to slow down soon. The reason for the popularity is the likeness towards this technology model from customers. 

To make sure you’re up-to-date with the latest technology, we’ve compiled a list of some Chatbot statistics. 

Let’s dive right in! 

01. Customer Service Cost 

According to IBM, there are many advantages of Chatbots and the most important for businesses is its cost. The convenience and efficiency of Chatbots can help reduce customer service costs by over 30%

This efficiency helps businesses employ human agents especially at the complex procedures that require contact. 

(Source: IBM)

02. 1.5 Billion People Use Chatbot

As the process of providing effective customer service picks up the pace, the need to resolve their questions also increases. This, in turn, is increasing the burden on artificial intelligence to provide useful tools and resources. According to a report, the Chatbot user base has increased to 1.5 billion.

(Tidio)

03. Chatbots Are Able to Answer 80% of Questions

Although the requirement of trained professionals to answer complex questions will forever be important, Chatbot’s ability to answer is surprising to everyone. According to IBM, Chatbots can answer 80% of the standard questions

This statistic is particularly crucial to paint a big picture of better response time and customer service agents taking on challenging tasks. 

(Source: IBM)

04. Customer Interactions Without a Human Agent 

Companies have realized the cost of losing a customer due to inadequate customer service. According to a report from IBM, 85% of all human interactions will be handled without a human agent. 

When compared to phone interaction, the cost of text-based conversations is significantly less expensive. 

(Source: IBM)

05. Chatbots Usage Among Millennials

If your company has a customer base between the age of 18 and 34 years, this Chatbot statistic will hold great significance. As per the study of Mobile Marketers, 40% of Millennials tend to use Chatbots every day

Chatbots like Siri and Google Assistance are becoming more human-like and help in increasing the numbers. 

(Source: Mobile Marketer)

06. AI Chatbots are the Most Effective AI Automation tools in Customer Services

An annual state of artificial intelligence report by HubSpot shows that AI chatbots are the most common and most effective  AI/automation tools for providing customer service. The survey, which included 1350+ businesses across marketing, sales, services, and SEO in the US, revealed that 41% of service professionals consider them to be more effective. 

(Source: HubSpot)

07. Chatbot’s Best Feature

There are many advantages of using Chatbots for customer service such as getting a quick answer, getting a detailed explanation, and more, but there is one that steals the limelight. 

According to Drift’s research, 64% of internet users consider the 24-hour service as the best feature/benefit provided by Chatbots. 

08. Consumers are Happy With Chatbots

Surprisingly, more and more consumers are happier with chatbot interactions than human agents. A survey revealed that 87.2% of consumers describe their interactions with chatbots as either neutral or positive. Consequently, 62% of those respondents would rather interact with customer service digital assistants than wait for human agents. 

(Source: Master of Code)

09. Chatbot Market Size and Startup Funding

As of 2024, the chatbot market size is approximately worth $7.01 billion. The leading AI startups in the market are ASAPP,  Observe.ai, and Ada. Each of these startups has raised 380, 214, and 191 million in funding, respectively.

Growing at a compound annual growth rate (CAGR) of 24.32%, it is expected to reach $20.81 billion by 2029.

(Source: Statista, Mordor Intelligence)

10. Chatbots Usage in B2B, B2C, and Service Organizations

The need to solve standard consumer questions without the help of human assistance has driven both B2B, B2C, and customer service organizations to adopt Chatbots. 

58% of B2B companies and 42% of B2C companies are already leveraging chatbots for automated communications in order to replicate their success with lead generation.  

(Source: Dashly)

11. Customers’ Changing Expectations

With the rise of technology, customers’ expectations and demands are also growing. In terms of customer service, users are now demanding real-time interactions. 

The only technology that could make this possible is the Chatbot. In fact, according to Salesforce, 58% of the customers admitted that the presence of Chatbots and voice assistants have changed their expectations of companies. Moreover, 77% of customers acknowledged that Chatbots will change their expectations in the next five years. 

(Source: Salesforce)

12. Chatbots as Shopping Assistants

Most customers use Chatbots for assistance across a wide range of activities. In fact, shopping tops the list for Chatbot users in the US. 

According to a global survey by Statista in 2023, 44% of Americans appreciate the use of chatbot channels such as Alexa or Google Home for discovering product information before the actual purchase. Furthermore, 35% of shoppers were looking forward to using chatbot customer support on the brands’ and retailers’ websites. 

(Source: Statista)

13. Financial Institutions to Employ Chatbots

In 2022, 98 million users, which corresponded with 37% of the US population, reportedly engaged with a bank’s chatbot. By 2026, that figure is expected to grow to 110.9 million users as chatbots are increasingly being featured on the websites, social media accounts, and mobile applications of financial institutions like banks, debt collectors, and mortgage services.

(Source: Consumer Financial Protection Bureau)

14. Chatbots vs. Mobile Apps

Although the new technology will not replace the old technology, it will outdate it. Chatbots and Mobile Apps work on a similar note. This stat by Gartner says that many companies will start to give more importance to Chatbots than mobile applications.

As the Chatbot engagement statistics suggest, Chatbots are proving to be more reliable and fulfill customer needs. It is also estimated that chatbot investments will grow by $1.11 billion in 2024.

15. Companies Having Between 1 and 50 Employees

If you’re a small company, i.e., you’ve got an employee base of 1 to 50 employees, this statistic will give you a better perspective of Chatbots. 

Companies with 1–50 employees tend to employ more Chatbot applications than those with more employees. In fact, 22% of micro-businesses (enterprises with 1-10 employees) and 20% of small businesses (enterprises with 10 – 49 employees) already use chatbots. 

(Source: Tidio)

16. The Success Rate of Bot Interactions 

We have already determined that Chatbots can answer the standard questions up to 80%. However, the success rate of answering questions differs from industry to industry. 

As far as the health sector is concerned, research shows that AI chatbots demonstrate a 40% efficiency in promoting healthy lifestyles, 27% in smoking cessation, and 13% efficiency in treatment or medication adherence. For the banking sector, the chatbots were projected to reach a success rate of 90% in 2023.

(Source: IBM)

17. The Area of Benefits 

Customer service, being the most advanced and common area linked with the Chatbots, benefits 95% from the technology.

Among other areas, Sales and Marketing (55%) and Order Processing (48%) are the ones that are most benefited by the usage of Chatbots. 

18. The Popularity of Chatbots Among Men and Women 

Approximately 50% of women (48.78%) and 36.81% of men use Chatbots for online shopping, proving the stat that women are more inclined towards using Chatbots than men. 

19. Text-Based vs. Call-Based Customer Service

According to a 2024 consumer texting behavior report by EZ texting, it was determined that most consumers prefer text-based customer service as compared to all other channels like emails and phone calls due to convenience and utility messaging. 

A whopping 31% of consumers have already sent text messages to businesses in the year 2024. Conversely, 66% of consumers expect a response from businesses within an hour of texting them. 

(Source: EZ Texting)

20. Buying Items through Chatbots

Chatbots are the future of marketing and the statistics are here to prove its tremendous prospect. As far as shopping on E-Commerce stores are concerned, people are using Chatbots for not only answering basic queries but also for personalized product recommendations. 

In fact, 47% of customers are open to the idea of buying products with the use of Chatbots. 

21. Humans Understand Better

Although Chatbots are going in the right direction, they still face some bias from the customers. It is believed that 60% of people think that humans can understand them better than a bot. 

While it would be hard to change this perspective, Artificial Intelligence is working day and night to remove this bias. 

22. Positive and Negative Chatbots Experience 

One cannot deny the fact that chatbots still have a long way to go and that there are plenty of repairs to be done before they reach their true potential. However, they are not so far off any longer. 

In 2021, a survey by LivePerson revealed that consumers exhibited a 61% positive sentiment towards chatbots, nearly double the previous year (31%). However, in 2024, another survey by Uberall has shown that 80% of customers stated their chatbot experience was generally positive.

Nonetheless, 20% of the users still considered the experience negative. 16% of those tagged it “somewhat negative,” while a meager 4% tagged it as a “very negative” experience. 

(Source: LivePerson, Uberal

23. Chatbots Response Geographically 

According to Business Insider, European countries tend to show a much better response than the US and Japan. 50% of respondents in European countries had a positive experience with Chatbots. 

24. Chatbots Have Quick Resolution Times

Chatbots can handle customer issues within a few texts. About 90% of customer support issues are resolved in less than ten messages between the bot and the customer. 

(Source: Tidio)

25. Representation of Genders in Chatbots

Although most chatbots are presented as genderless, there is a wide gap between the number of chatbots represented as males and females. Those represented as females account for 37% of chatbots, while those represented as males are less than half of that percentage.

Although there are no clear reasons for this proportion, there are indications that most companies simply assume that users find it easier to accept female personalities. 

(Source: Statista)

26. Chatbot Usage for Online Search

The success of AI-powered chatbots like chatGPT has created the possibility of new use cases for online search. In a recent 2023 survey involving four countries in Southeast Asia, 62% of contributors claimed they would likely use AI-enabled chatbots like chatGPT for online searches in the near future. 

(Source: Statista)

27. Singaporean and Australian Marketers Highly Value ChatBots 

Marketers in Singapore and Australia are leveraging generative AI tools to stay efficient and drive effective results. 

In fact, chatbots are prioritized as the third most important tool by both marketers in Singapore and Australia. 61% and 56% of marketers in these countries, respectively, consider them to be a priority in their day-to-day.

Conclusion 

The purpose of technological advancements is to make lives easier and Chatbots are a step in that direction.

If you are looking to improve the customer experience, the above-mentioned statistics will help you work on the right track to generate more leads and conversions.  

Don’t miss these related articles:

Join Software Buyers & Sellers

Get top software information and best deals right on your inbox.

HubSpot CRM Sidebar
ADVERTISEMENT
Popular on Begindot.
An all-in-one employee management HR...
monday.com is a leading project management and CRM solution,...
Smartsheet is a modern project...
Salesforce is one of the...

Promo Box*

Popular EOR Solutions

EOR (Employer of Record) helps businesses hire global workforce and make human resource-related processes easier.