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    Retail spend using chatbots to hit $12bn globally in 2023, driven by ChatGPT et al in US and Europe

    Global retail spend through chatbots is forecast to reach $12bn in 2023; growing to $72bn by 2028, finds the latest research from Juniper Research. This 470% increase in five short years will be driven by ever increasing use of cost-effective open language models such as ChatGPT across Europe and Asia.

    Open language models consist of large neural networks that are trained on substantial quantities of online information and learn through low levels of human supervision. They are implemented into chatbots to automate functions such as customer support, marketing and payment processing.

    A complete analysis is available in the new report, Chatbots: Market Forecasts, Sector Analysis & Future Strategies 2023-2028.

    ChatGPT: The great disruptor

    The report predicts that the development of open language models will become a key driver for retail spend growth amongst small and medium retailers that were previously unable to invest in chatbots.

    Research author, Frederick Savage argues: “Chatbots have historically been a low priority for omnichannel strategies owing to the high cost of training AI-based algorithms. However, ChatGPT has significantly disrupted this trend; lowering the cost of implementation of chatbots for smaller retailers.”

    Asia Pacific to account for 85% of global spend in 2023

    Additionally, the report forecasts Asia Pacific will account for 85% of global retail spend over chatbots, despite only representing 53% of the global population. Messaging apps, including WeChat, LINE and Kakao have built strong partnerships with a wide array of online retailers, resulting in high levels of confidence in chatbots as a retail channel.

    However, the report predicts that the release of open language models will drive growth outside of Asia Pacific. By 2028, 66% of spend is forecast to be attributable to the region, as online retailers in other areas, such as North America and Europe, implement chatbots into retail activities. To maximise this growth outside of Asia Pacific, the report urges vendors to target online retailers in these two regions.

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