Live Chat Software Market Size

Global Live Chat Software Market size was valued at USD 1.07 Billion in 2023 and is poised to grow from USD 1.16 Billion in 2024 to USD 2.25 Billion by 2032, growing at a CAGR of 8.61% in the forecast period (2025-2032).

The demand for 24*7 customer care support is one of the factors that positively create an increase in the live chat software market. Customers were previously more concerned about whom to connect with and how to connect with the company from they bought any product or service. In some cases, if the company doesn’t reveal any contact information, people do not prefer to opt for that company for any product or service. As a result, many organizations have adopted and integrated such live chat features that are significantly boosted after the launches of the Artificial Intelligence (AI) powered chatbots concept.

Additionally, the sales & marketing sector streamlining their process with the incorporation of live chat software into their process that shortens the time spent on a call by utilizing the live chat feature, they are able to talk to several clients simultaneously. Surveys conducted by large organizations have demonstrated the necessity of this solution. A case study reveals that Lush has witnessed in the last year that customers who message their Customer Care team have a conversion rate 174% higher than customers who do not message their team. Customers who message the Lush team have an average spend 19% higher compared to customers who do not message.

Live chat is becoming more of a necessity in the e-commerce industry to facilitate conversions and cart abandonment reduction. E-commerce Platforms such as Amazon, Flipkart, Shopify and Magento have incorporated live chat functionality. 41% of customers indicate that they prefer real-time customer support through live chat compared to other channels, like email or phone support. The worldwide E-Commerce industry is expected to surpass USD 8.5 Trillion by 2032. As this industry is rising dominantly, there will be a required tool to manage various customer queries.

Despite such advantages the data security and privacy are critical concern in the live chat software market because of the real-time sharing of sensitive customer information. Businesses need to adhere to stringent regulations such as GDPR and CCPA, use end-to-end encryption, and provide secure data storage.

How is Artificial Intelligence Reshaping the Landscape of Live Chat Platforms?

As Artificial Intelligence (AI) has revolutionized many industries, the concept of AI-powered chatbot assistant or customer support bots, are primarily changing live chat platforms by making real-time, context-aware, and personalized conversations at scale possible. AI-driven chatbots now address routine queries in an instant, freeing human agents to address complex cases. IBM a leader in the AI landscape, has suggested that businesses can reduce customer care costs by up to 30% with the assistance of AI. Such statements help other organizations to integrate AI for customer interactions to make customers satisfied. By using AI-powered chatbots, e-commerce firms are recommending products in live chats based on browsing history, greatly improving upselling opportunities and individualization of user journeys.

For instance, In February 2025, Mistral AI launched its AI assistant chatbot named ‘Le Chat’ that delivers 1,000 words per second. Mistral has asserted Le Chat is constructed to "transmute challenging activities into realizable results with AI that speak each professional language. Users are given access to multi-domain expertise with intuitive interfaces designed for technical as well as non-technical consumers.