According to Gartner, Inc. , spending on worldwide contact center (CC) and CC conversational AI and virtual assistant end-users is projected to reach $18. 6 billion in 2023. This represents a 16. 2% increase from 2022. Megan Marek Fernandez, Director Analyst at Gartner, states that near-term investment growth rates for CC and CC conversational AI and virtual assistants may be impacted by business volatility, leading to longer decision cycles. However, in the long-term, the growth of generative AI and conversational AI will drive the replacement of contact center platforms as customer experience (CX) leaders seek to enhance both the efficiency of customer service operations and the overall customer experience. The global conversational AI and virtual assistant market is the fastest-growing segment in the contact center forecast, contributing to a projected 24% overall growth in 2024. Contact center decision-makers are investing more in conversational AI as part of a long-term strategy to reduce reliance on live agents. However, most customer service interactions are currently augmented with CC AI instead of fully offloaded to a virtual agent. Gartner estimates that around 3% of interactions will be handled via CC AI in 2023, and this is expected to grow to 14% in 2027. Despite general economic and geopolitical uncertainty, Gartner expects customer-facing projects to be viewed as crucial for revenue retention and generation strategies. While some areas of IT investment may face budget restrictions, customer service and support initiatives that enhance the customer experience or streamline operations are likely to receive easier investment approval. This could benefit projects related to contact center as a service (CCaaS), especially as cloud-based contact center capabilities are implemented to modernize customer service operations.

Gartner predicts that CCaaS investment growth will accelerate, particularly among contact centers with many thousands of agents that have been slower to adopt CCaaS. Modernization projects will involve the adoption of CCaaS solutions to support a wider range of communication channels and incorporate advanced features such as dashboards, analytics, routing, workforce optimization (WFO), knowledge and insight, and conversational AI capabilities. Gartner will be providing additional analysis on AI trends at the Gartner IT Symposium/Xpo, a conference for IT executives and CIOs. Attendees will have the opportunity to explore the future of IT and business, including topics like generative AI, business transformation, cybersecurity, customer experience, data analytics, and executive leadership. Gartner for Information Technology Executives offers objective insights to CIOs and IT leaders, helping them navigate digital transformation and drive business growth. To learn more, visit www. gartner. com/en/information-technology. Follow Gartner for IT Executives on Twitter and LinkedIn (#GartnerIT) for news and updates. Gartner, Inc. (NYSE: IT) provides actionable insights and guidance to organizations to make smarter decisions and achieve stronger performance on their critical priorities. For more information, visit gartner. com. Clients have access to 24/7 proven management and technology research, expert advice, benchmarks, diagnostics, and more. Please note: The provided text has not been edited for content or accuracy.