Global retail spend over chatbots is expected to reach $12 billion in 2023 according to Juniper Research’s Chatbots research.
Juniper Research expects a 470% leap in retail spend over chatbots over the next five years with an expected $72 billion valuation by 2028. Asia Pacific will account for 85% of global retail spend over chatbots although only 66% of spend is expected to come from the region by 2028 due to investment from other areas such as North America and Europe.
According to the report, retail spend growth amongst small and medium retailers unable to invest in chatbots will be attained by the development of open language models. Open language models are infused into chatbots to automate several functions including customer support, marketing and payment processing.
To enjoy the growth outside of Asia Pacific, the report urges vendors to target online retailers in Europe and North America. Small retailers looking for easy chatbots to develop are advised to take advantage of the development of an app network with the release of ChatGPT-4. The development which has made fairly sophisticated customer interactive chat easy to develop will be crucial for small retailers embracing the technology.
Several large organizations including Starbucks, Salesforce, and others now prefer chatbots to other virtual agents. The technology is expected to take on bigger roles in various industries across the tech sector.
