United Kingdom Conversational AI Market Size, Share, and COVID-19 Impact Analysis, By Type (Intelligent Virtual Assistant & AI Chatbots), By Technology (Machine Learning, Deep Learning, Natural Language Processing, Automatic Speech Recognition), and United Kingdom Conversational AI Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Conversational AI Market Insights Forecasts to 2035

• The United Kingdom Conversational AI Market Size was Estimated at USD 1,020.34 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 24.53% from 2025 to 2035
• The United Kingdom Conversational AI Market Size is Expected to Reach USD 11,400.23 Million by 2035

According to a research report published by Spherical Insights and Consulting, The United Kingdom Conversational AI Market Size is anticipated to reach USD 11,400.23 Million by 2035, growing at a CAGR of 24.53% from 2025 to 2035. The growing e-commerce sector, the increasing automation of business processes, and the expanding use of deployment techniques are some of the major elements influencing market trends and demand.

Market Overview

The United Kingdom conversational AI market refers to the industry that is linked with IT and computer science technology, which focuses on the development and utilization of a technique known as conversational artificial intelligence (AI) that allows robots to converse with users in a natural, human-like manner using text or speech interfaces. Natural Language Processing (NLP), Machine Learning (ML), and deep learning are some of the methods that Conversational AI primarily uses to comprehend user inputs, produce pertinent responses, and imitate human conversation patterns. Also, the government is encouraging steps that exceed the market growth, for eg. The UK government is testing an experimental AI chatbot designed to assist local citizens in setting up small businesses and finding support. This chatbot, known as GOV.UK Chat is powered by OpenAI’s GPT-4 technology and pulls information from over 700,000 pages of GOV.UK content. It aims to simplify access to business-related guidance, including tax regulations, funding opportunities, and legal requirements.

Report Coverage

This research report categorizes the market for the United Kingdom conversational AI market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom conversational AI market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom conversational AI market.

Driving Factors

The market for United Kingdom conversational AI is driven by the country's prominent place in the IT sector at a global level, with an overall nourishing environment for developing this business. The market for conversational AI is growing quickly as more companies use chatbots and virtual assistants driven by AI to improve customer service and expedite processes. The growth of voice-activated gadgets and smart home systems, as well as developments in cloud computing, machine learning, and natural language processing, are fueling demand. Moreover, local companies and partnerships extend the market growth. Such as they are utilizing conversational AI to increase revenue, make better decisions, and gain a deeper understanding of client behavior.

Restraining Factors

The major obstacles, such as data privacy and a lack of awareness of their application, could slow down the market expansion.

Market Segmentation

The United Kingdom Conversational AI Market share is classified into type and technology.

• The AI chatbots segment held the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period.

The United Kingdom conversational AI market is segmented by type into intelligent virtual assistant and AI chatbots. Among these, the AI chatbots segment held the largest market share in 2024 and is anticipated to grow at a substantial CAGR over the forecast period. This is due to strong advancements in NLP and machine learning for chatbots are boosting segment expansion. The primary function of chatbots is data collection, getting clarification on any product or service, or scheduling an appointment. Chatbots can now understand and generate human-like language due to developments in Natural Language Processing (NLP) technology. The accuracy and contextual awareness of chatbots have been greatly enhanced by deep learning models and machine learning techniques.

• The natural language processing segment dominated the market in 2024 and is projected to grow at a substantial CAGR over the forecast period.

The United Kingdom conversational AI market is segmented by technology into machine learning, deep learning, natural language processing, and automatic speech recognition. Among these, the natural language processing segment dominated the market in 2024 and is projected to grow at a substantial CAGR over the forecast period. This is because of algorithms that allow machines to comprehend and produce human language and provide advantages for a wide range of businesses and applications. NLP technology can analyze vast amounts of data quickly and efficiently by scanning a variety of papers, internal systems, emails, social media data, online reviews, and more. Furthermore, NLP technologies automatically scale up or down according to user needs, enabling users to use as much or as little processing power as necessary.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom conversational AI market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• JIQ.AI
• Voyage Companion Ltd
• Converso
• OpenDialog AI Ltd
• Wluper
• EVA.ai
• VerbaFlo.ai
• action.ai
• Others

Recent Developments:

• In November 2024, Meta officially launched its AI chatbot in the UK, making it available on Facebook and Instagram. Users can now interact with the chatbot to ask questions, get recommendations, and even generate creative content.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom conversational AI market based on the below-mentioned segments:

United Kingdom Conversational AI Market, By Type

• Intelligent Virtual Assistant
• AI Chatbots

United Kingdom Conversational AI Market, By Technology

• Machine Learning
• Deep Learning
• Natural Language Processing
• Automatic Speech Recognition