Conversational AI set to hit $23 billion, driven by Agentic AI
The global conversational AI market is poised for significant growth, with revenues projected to surge from $14.6 billion in 2025 to over $23 billion by 2027, according to a new study by Juniper Research.
The driving force behind this expansion is the increasing adoption of agentic AI, a subset of AI that allows systems to act independently to achieve specific goals while learning from past interactions.
Agentic AI is transforming how businesses automate tasks like service inquiries and appointment scheduling through conversational channels, reducing the need for human agents.
Juniper Research emphasizes the importance of integrating agentic AI frameworks into existing communication technology stacks to enable seamless customer interactions across various messaging platforms. Crucially, integration with business support systems holding customer data is essential for agentic AI to manage interactions throughout the entire customer journey.
While recognizing the revenue potential, the report cautions against excessive autonomy in early agentic AI implementations. Research author Molly Gatford stresses the need for careful moderation of agentic AI outputs, particularly in the initial stages.
Addressing potential liability issues arising from AI “hallucinations” or incorrect communications is critical to building enterprise trust in agentic AI. Successfully navigating these challenges will be key for conversational AI vendors to capitalize on the substantial market growth predicted over the next three years.
Juniper Research’s comprehensive study, “Global Conversational AI Market 2025-2029,” provides in-depth analysis and forecasts for 61 countries, including a competitor leaderboard and an examination of current and future market opportunities.
Global Conversational AI Market 2025-2029, is now available as a free download.
