Saudi Arabia AI-Powered Chatbots Market Size, Share, 2033

Saudi Arabia AI-Powered Chatbots Market Size, Share, Trends and Forecast by Offering, Organization Size, Deployment Mode, Medium, End Use, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A29086

Saudi Arabia AI-Powered Chatbots Market Overview:

The Saudi Arabia AI-powered chatbots market size reached USD 208.44 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,184.42 Million by 2033, exhibiting a growth rate (CAGR) of 19.76% during 2025-2033. The market is witnessing significant growth due to the expansion of AI-powered chatbots in government services and the widespread adoption in e-commerce and customer service.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 208.44 Million
Market Forecast in 2033	USD 1,184.42 Million
Market Growth Rate (2025-2033)	19.76%

Saudi Arabia AI-Powered Chatbots Market Trends:

Expansion of AI-Powered Chatbots in Government Services

Saudi Arabia is currently getting on board with AI chatbots in government services to enhance efficiency, accessibility, and citizen engagement. The Saudi government is giving high consideration to digital transformation under Vision 2030, which has led to a rapid uptake of AI in service delivery of public sector facilities. Multiple departments, including the Ministry of Health and the Ministry of Interior, as well as municipal departments, are using chatbots to provide real-time assistance, automate other administrative tasks, and facilitate communication between citizens and government when needed. The bureaucracy has become a major driving force behind this trend. With the help of AI chatbots, citizens are able to engage in services such as visa application, appointment scheduling, tax inquiry, and emergency assistance without engaging human beings. In addition, Arabic-language processing greatly improves the efficiency of the application, ensuring a user-friendly interface for Saudi citizens and expatriates. For instance, in February 2025, Saudi Arabia’s leading digital enabler stc Group's AI arm, stc.AI, announced the launch of a sovereign cloud platform hosting Llama 405B, enabling rapid AI inference and introducing stc Enterprise GPT for advanced generative AI applications across Saudi industries. With continued investment in AI research and development, chatbot deployment in government services is expected to expand further, improving public sector efficiency while aligning with the nation’s broader digitalization goals.

Growing Adoption in E-Commerce and Customer Service

Saudi Arabia’s e-commerce sector is experiencing rapid expansion, driven by rising internet penetration, increasing consumer demand for online shopping, and supportive government policies. AI-powered chatbots are playing a crucial role in transforming customer service within this sector, enabling retailers to enhance user experience and optimize sales operations. Leading e-commerce platforms, financial institutions, and telecom companies are integrating chatbots to handle customer inquiries, process transactions, and provide product recommendations. Retailers are utilizing AI chatbots to assist customers in multiple ways, from answering FAQs and tracking orders to offering personalized shopping suggestions based on user preferences and purchase history. These chatbots use advanced natural language processing (NLP) and machine learning algorithms to understand customer queries in Arabic and English, ensuring seamless communication. The growing demand for 24/7 customer support is further accelerating chatbot adoption, as businesses seek to improve engagement and operational efficiency. For instance, in February 2025, IBM and Lenovo announced the extension of their partnership to advance generative AI in Saudi Arabia, integrating IBM watsonx and SDAIA’s ALLaM model to enhance public services, fraud detection, and customer service. Moreover, AI chatbots are enhancing conversational commerce, where users can browse products, receive recommendations, and complete purchases through chat interfaces on messaging apps such as WhatsApp and Facebook Messenger. As AI capabilities continue to evolve, chatbot adoption in Saudi Arabia’s e-commerce and customer service industries will continue to expand, driving innovation and improving business-consumer interactions.

Saudi Arabia AI-Powered Chatbots Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on offering, organization size, deployment mode, medium, and end use.

Offering Insights:

Platforms
- Standalone
- Web-based
- Message-based
- Others
Services
- Professional Services
- Managed Services

The report has provided a detailed breakup and analysis of the market based on the offering. This includes platforms (standalone, web-based, message-based, others) and services (professional services, managed services).

Organization Size Insights:

Large Enterprises
Small and Medium-sized Enterprises

A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes large enterprises and small and medium-sized enterprises.

Deployment Mode Insights:

Cloud-based
On-premises

A detailed breakup and analysis of the market based on the deployment mode have also been provided in the report. This includes cloud-based and on-premises.

Medium Insights:

Websites
Mobile Apps

A detailed breakup and analysis of the market based on the medium have also been provided in the report. This includes websites and mobile apps.

End-use Insights:

IT & Telecommunications
BFSI
Retail & E-commerce
Healthcare & Life Sciences
Manufacturing
Travel & Hospitality
Media & Entertainment
Education
Government & Public Entities
Real Estate
Others

A detailed breakup and analysis of the market based on the end-use have also been provided in the report. This includes IT & telecommunications, BFSI, retail & e-commerce, healthcare & life sciences, manufacturing, travel & hospitality, media & entertainment, education, government & public entities, real estate, and others.

Regional Insights:

Northern and Central Region
Western Region
Eastern Region
Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia AI-Powered Chatbots Market News:

In October 2024, Gupshup, a leading Conversational AI company, announced the expansion into Saudi Arabia with Gupshup Technology Gulf Limited, aligning with Vision 2030. Its Conversation Cloud platform empowers businesses to enhance customer engagement through AI-enabled agents, enabling intelligent, real-time interactions and digitizing customer journeys for seamless, advanced conversational experiences across various industries.
In February 2025, Google introduced Arabic support for its Gemini AI app, available on Android and iOS. Users can access Gemini 1.0 Pro for free, while Google One AI Premium subscribers can use Gemini Advanced and 1.5 Pro, which excels in coding, logical reasoning, detailed instructions, and creative collaboration.

Saudi Arabia AI-Powered Chatbots Market Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Million USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Offering Organization size Deployment mode Medium End use Region
Offerings Covered	Platforms: Standalone, Web-based, Message-based, Others Services: Professional Services, Managed Services
Organization Sizes Covered	Large Enterprises, Small and Medium-sized Enterprises
Deployment Modes Covered	Cloud-based, On-premises
Mediums Covered	Websites, Mobile Apps
End Uses Covered	IT & Telecommunications, BFSI, Retail & E-commerce, Healthcare & Life Sciences, Manufacturing, Travel & Hospitality, Media & Entertainment, Education, Government & Public Entities, Real Estate, Others
Regions Covered	Northern and Central Region, Western Region, Eastern Region, Southern Region
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the Saudi Arabia AI-powered chatbots market performed so far and how will it perform in the coming years?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of offering?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of organization size?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of deployment mode?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of medium?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of end use?
What is the breakup of the Saudi Arabia AI-powered chatbots market on the basis of region?
What are the various stages in the value chain of the Saudi Arabia AI-powered chatbots market?
What are the key driving factors and challenges in the Saudi Arabia AI-powered chatbots?
What is the structure of the Saudi Arabia AI-powered chatbots market and who are the key players?
What is the degree of competition in the Saudi Arabia AI-powered chatbots market?

Key Benefits for Stakeholders:

IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia AI-powered chatbots market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia AI-powered chatbots market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia AI-powered chatbots industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

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