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Virtual shopping assistant refers to AI-powered conversational agents that assists customers during online shopping through natural language conversations. They help shoppers find products, get personalized recommendations, check prices and product details and make informed purchase decisions. Virtual assistants improve online shopping experience by providing timely answers to customer queries and making shopping convenient.
The global Virtual Shopping Assistant Market is estimated to be valued at US$ 624.7 Mn or Mn in 2023 and is expected to exhibit a CAGR of 32.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the virtual shopping assistant market is the integration of advanced technologies like machine learning, deep learning and natural language processing to enhance customer experience. As virtual assistants are powered by AI and machine learning, they are continuously learning from interactions with customers to improve response accuracy and personalize recommendations. Integration of speech recognition allows customers to search products and get assistance through voice commands as well. With growth in e-commerce and online shopping, virtual assistants are being deployed across various industries to streamline purchase processes and boost sales conversions. Customers have become more receptive to interacting with virtual assistants, driving their adoption among online retailers.
SWOT Analysis
Strength: Virtual shopping assistants leverage AI technologies like machine learning and natural language processing which allows them to understand customer needs accurately. They are available 24/7 and can answer multitude of customer queries simultaneously.
Weakness: Developing highly intelligent virtual shopping assistants requires huge investment in AI capabilities and constant upgradation of technologies. Also, some customers still prefer human interaction for shopping experience.
Opportunity: Growing e-commerce industry and online shopping trends open huge opportunities for virtual shopping assistants to enhance customer experience. They can be leveraged across industries like travel, healthcare, banking for personalized customer services.
Threats: Privacy and security concerns around customer data can impact adoption of virtual assistants. Strict regulations around use of customer data pose challenges. Advancements in conversational AI by competitors also increases threat.
Key players operating in the virtual shopping assistant market are Anthropic PBC, Synthesia Limited, Observe.AI, Avaamo, Cognigy, SoundHound AI Inc., Luka, Inc. Pypestream Inc,, Mobisoft Infotech, EdgeVerve Systems Limited, Nuance Communications, Inc., Ada, and Kore.ai. Major players are focusing on enhancing capabilities of virtual assistants through advanced AI and machine learning technologies.
Key Takeaways
The global Virtual Shopping Assistant Market is expected to witness high growth, exhibiting CAGR of 32% over the forecast period, due to increasing demand for personalized customer experience during online shopping. Virtual assistants can understand customer preferences from past shopping history and product interests to provide tailored recommendations.
North America is expected to dominate the global virtual shopping assistant market during the forecast period. This is attributed to presence of major technology companies developing conversational AI solutions in this region. Furthermore, high adoption of smart speakers and e-commerce in US and Canada contributes to market growth.
Asia Pacific is anticipated to exhibit fastest growth in virtual shopping assistant market supported by expanding e-commerce industry in China, India and other developing countries. Proliferating internet and smart device penetration in the region creates conducive environment for virtual assistants.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
