Conversational AI spending is going to skyrocket this year – here’s why
Enterprise spending on conversational AI is growing, and it’s all down to the new industry trend
The growth in the use of conversational AI shows no sign of slowing, according to new research, driven by enterprise spending on agentic AI for services.
Analysis from Juniper Research shows that global revenue from conversational AI services is set to grow from $14.6 billion in 2025 to more than $23 billion by 2027.
Behind much of this growth, Juniper noted, is attributed to organizations cottoning on to the benefits to services of implementing agentic AI - a subset of AI which enables solutions to act independently to reach a pre-set objective.
In practice, this allows for the automation of tasks such as service enquiries and appointment scheduling over conversational channels, reducing reliance on intervention from human agents.
In the report, Juniper encouraged conversational AI vendors to capitalize on this trend by integrating agentic AI into their communications technology stack to create solutions that automate customer interactions across messaging channels.
However, to allow agentic AI to manage these interactions right across the customer journey, Juniper warned there will need to be tight integration with the business support systems where customer data is stored.
There should also be careful consideration of the level of autonomy that's given to agentic AI, the report warned, with human oversight of the AI's actions highly necessary during the early stages of implementations.
Sign up today and you will receive a free copy of our Future Focus 2026 report - the leading resource for IT decision-maker insight on priorities and investment areas in AI, security and more.
"Conversational AI vendors must carefully moderate the outputs of agentic AI models during early-stage implementations. Issues around liability arising from hallucinations or erroneous communications must be avoided before enterprises’ trust in agentic AI can be established," said research author Molly Gatford.
"This will best position conversational AI vendors to capitalise on this substantial revenue growth over the next three years."
Agentic AI adoption is surging, but challenges lay ahead
While interest in agentic AI is surging globally, a report last month warned there are challenges ahead for early enterprise adopters.
Research from Pegasystems found that while six-in-ten workers in the US and UK are using AI agents on a daily basis, many don't trust their reliability or quality.
A third told researchers they were worried about the quality of work produced by agents, with a similar number pointing to a lack of human intuition and emotional intelligence.
Notably, three-in-ten said they didn’t trust the accuracy of AI-generated responses, with accuracy and reliability cited as the top priority for improvement in agentic AI tools.
Agentic AI has its dark side too, with researchers from Malwarebytes warning this month of the threat posed by malicious AI agents that can reason, plan, and use tools autonomously.
"With the expected near-term advances in AI, we could soon live in a world where well-funded ransomware gangs use AI agents to attack multiple targets at the same time," the researchers warned.
MORE FROM ITPRO
Emma Woollacott is a freelance journalist writing for publications including the BBC, Private Eye, Forbes, Raconteur and specialist technology titles.
-
Amazon tells software engineers that not every task needs AINews The tech giant wants staff to stop tokenmaxxing and start using AI when it's sensible
-
UK government targets simplified planning, community incentives with digital infrastructure build-outNews Will the new Data Centre Covenant really make all that much difference?
-
‘AI’s price tag is starting to shape its path through the enterprise’: 89% of enterprises have scaled back AI deployments over token costs – and they’re still struggling to track spendingNews Volatile token costs across 2026 have caused major headaches for IT leaders
-
Microsoft wants to tackle the biggest issue for UK AI adoption: confidenceNews UK and Ireland CEO Darren Hardman says it's our responsibility to get AI into every corner of the UK
-
AI agents have a mind of their own – and that’s a problem for businessesNew research shows that half of organizations are having to deal with agent behaviour that hasn't been authorized or approved.
-
Huawei is positioning itself as a viable alternative to big US tech companies. Can it pull it off?Opinion With Nvidia and AMD excluded from the Chinese AI market, Huawei is building a powerful reputation at home and abroad
-
“Enterprises are becoming much more rigorous about the economics of AI”: Snowflake wants to help you cut AI costs by choosing the right model for the right taskNews New dynamic model routing capabilities aim to help customers box clever when it comes to their AI model choice
-
Microsoft has joined the growing list of companies cracking down on ‘tokenmaxxing’News The company is updating internal guidance to reduce rising costs
-
‘AI cost management has the same problems that cloud had’: Enterprises are still facing huge AI bills thanks to ‘tokenmaxxing’ – that means FinOps practices are more important than everNews With firms facing surging AI bills, FinOps techniques are more important than ever
-
‘We are now seeing MAI models outperform general-purpose frontier models’: Microsoft CEO Satya Nadella touts in-house models to cut spiralling AI costs – and reduce growing reliance on frontier labsNews The Microsoft chief says pricey frontier models don't have to be used for every task, and its own in-house MAI models could be the key to reducing costs.