As the world evolves, the use of chatbots continues to grow. New platforms constantly emerge, offering more features than their predecessors.
With 2024 nearing its end, we’re reflecting on the most impactful AI chatbots of the year and the trends shaping 2025. Following ChatGPT’s rise, the competitive landscape has become more dynamic than ever.
According to Top Chatbot Stats, more than 987 million people use AI chatbots today. This number will continue to increase the more chatbots are created every year, adapting to new trends. What have been the most-used AI chatbots of the past year? Are all AI chatbots the same? How has it assisted us with mundane tasks? Let's get started!
Future of Chatbot Market
“The global chatbot market is valued at $15.57 billion in 2024, and by 2029 the market will grow to $46.6 billion.” - Exploding Topics
Market share: 59.2%
ChatGPT has been in the game for a long time now and is the most widely used AI chatbot, with approximately 200 million active users. It is a generative artificial chatbot that is based on the GPT-4 large language model. It provides conversational tools and manages context and concepts, enabling you to have a conversation in engaging with the model back and forth to get specifically what you’re asking for. In a way, ChatGPT has initiated the chatbot revolution; ever since its establishment, we have seen the rise of many similar platforms that offer the same service.
Market share: 14.4%
Microsoft Copilot is an AI-powered assistant that is integrated within Microsoft 365 applications, specifically designed to improve productivity and streamline workflows. It uses advanced AI algorithms, including GPT-4 to assist various Microsoft 365 apps such as Word, Excel, PowerPoint, and Teams. Its key features include:
Automated content generation that creates drafts in Word.
Data analysis and visualization assisting with generating formulas and charts in Excel.
Intelligent email management that summarizes long email threads in Outlook.
Market Share: 13.5%
Created in response to ChatGPT, Gemini is Google’s multimodal AI system designed for advanced language understanding, code generation, and audio processing. It has the ability to understand various forms of information, such as the text and images you provide. Moreover, it programs code and is able to fully understand audio, making it extremely flexible and adaptable. To stay ahead of the competition, Gemini introduced an entirely new code generation system known as AlphaCode2, which introduces complex mathematics and computer science theory. Gemini consists of three different versions:
Ultra: the most advanced and multi-modal.
Pro: used for limited capabilities and functions.
Nano: focuses on devices with less computing and memory capabilities.
Market share: 5.6%
If you are not satisfied with what ChatGPT offers, Perplexity AI can be your go-to solution, where it uses advanced AI to understand exactly what you’re asking. Like ChatGPT, it is a conversational search engine that also uses large language models to answer questions. It does so through searching many websites and articles, to give multiple options as well the most relevant pieces of information. Not only does it engage in human-like conversations, interpreting contexts to fully understand your question, but also its answers include citations and footnotes, so you are able to verify certain facts something ChatGPT does not do.
Market share: 2.3%
Unlike other platforms, Intercom is the only complete AI-first customer service platform. It contains large amounts of data and knowledge, being built on a single AI system with three major components:
AI agent: provides direct and accurate informational answers for customers, at all times.
AI Copilot: offers assistance and support for agents.
AI analyst: gives comprehensive insights and recommendations for leaders.
Limitations of AI Chatbots
To start off, AI chatbots can often provide misleading, incorrect, or even outdated information.
Secondly, algorithmic bias is a concern, where is how AI models reflect biases based on their training. This can negatively influence their decision making and the accuracy of their results.
Thirdly is its lack of creativity and empathy. AI chatbots are limited to true emotional understanding, something humans are born with!
Furthermore, while they can generate useful content, it is simply based on existing knowledge and data, rather than on true innovation.
Finally, the lack of real-time information limits most chatbots, as they cannot access updated data, potentially leading to inaccurate answers.
As we have seen throughout 2024, AI chatbots continue to better understand the human language, including its context and even certain slangs. Who knows? Maybe in five years it will be even more natural, making interactions feel entirely human-like.
Chatbots are able to do things that would burn humans out, such as leveraging data to provide personalized experiences and support based on the individual’s preferences and interactions. AI’s rise will not replace human control but will likely complement human efforts, beginning with industry specialization, offering functionalities in healthcare, finance, and even legal services.
Nowadays, many of us rely on chatbots like ChatGPT to give us the specific answer we’re looking for, rather than spending hours on search engines just to find nothing that supports our question. Have you ever wondered what it takes to build your own chatbot? With our AI Engineering Bootcamp, you can learn the skills to make it happen and bring your ideas to life!
