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Apac to account for 85 per cent of global chatbot spend in future

Asia Pacific will contribute 85 per cent of global retail spending on chatbots, despite being home to only 53 per cent of the global population

According to Juniper Research, messaging apps including WeChat, Line, and Kakao have formed solid alliances with a diverse range of online shops, resulting in high levels of trust in chatbots as a retail channel.

The report predicts that small and medium-sized shops that previously couldn’t afford to invest in chatbots would increasingly depend on the development of open language models to increase their retail sales. 

Juniper says global retail spending on chatbots is expected to reach US$12 billion this year, rising to $72 billion by 2028. The introduction of open language models will fuel expansion outside of Asia Pacific. As online retailers in other regions, including North America and Europe, integrate chatbots into shopping activities, the region is expected to account for 66 per cent of spending by 2028. 

“Chatbots have historically been a low priority for omnichannel strategies owing to the high cost of training AI-based algorithms,” said research author, Frederick Savage. 

“However, ChatGPT has significantly disrupted this trend; lowering the cost of implementation of chatbots for smaller retailers.”

The research advises manufacturers to target online retailers in these two regions to optimise growth outside of Asia Pacific.

Further reading: Young Australians open to buying products ChatGPT recommends

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