Saudi Arabia Conversational AI Market

Saudi Arabia Conversational AI Market Overview:

The Saudi Arabia conversational AI market size reached USD 122.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,648.9 Million by 2033, exhibiting a growth rate (CAGR) of 29.70% during 2025-2033. Digital transformation in banking and government sectors, rising demand for Arabic-language virtual assistants, increased chatbot adoption in e-commerce, supportive national AI strategies, and growing investments in smart customer service and automation technologies are some of the factors contributing to Saudi Arabia conversational AI market share.

Saudi Arabia Conversational AI Market Trends:

Shift toward AI-Led Customer Interaction in Regulated Sectors

Saudi Arabia is seeing increased adoption of intelligent communication tools purpose-built for high-touch sectors such as BFSI and healthcare. Local deployments now emphasize real-time, AI-enabled voice interactions and quality monitoring capabilities that ensure compliance while enhancing user satisfaction. These solutions are becoming integral to omnichannel customer engagement strategies, enabling brands to deliver tailored conversations across digital and voice platforms. As demand rises for automation that can mimic human-like dialogue with contextual awareness, generative voice technologies are gaining ground. This move complements the broader digital overhaul within the Kingdom, positioning advanced conversational platforms as key enablers in transforming service delivery for highly regulated and experience-sensitive industries. These factors are intensifying the Saudi Arabia conversational AI market growth. For example, in December 2024, Exotel expanded into Saudi Arabia as part of its entry into high-growth international markets. Through its Harmony platform, the company offers AI-first customer engagement solutions, including generative voice bots and conversational quality analysis. These tools support real-time, personalized conversations for sectors like BFSI and healthcare, enhancing customer experience across digital channels in Saudi Arabia.

Growing Focus on Arabic-Centric Conversational Interfaces

Based on the Saudi Arabia conversational AI market outlook, Saudi Arabia is witnessing a growing push toward AI-driven customer communication tools tailored for native language fluency. Recent market activity reflects a strong alignment with the Kingdom’s Vision 2030 goals, emphasizing digital infrastructure and service modernization. There's a notable shift toward platforms that support Arabic-language interactions and are equipped with domain-specific large language models. These developments aim to improve user engagement and operational efficiency across sectors like finance, retail, and government services. With localized AI models entering the space, customer experience strategies are being redefined through real-time, context-aware dialogue systems, setting a new benchmark for digital customer service within the region. For instance, in October 2024, Gupshup, a conversational AI platform, expanded into Saudi Arabia by launching Gupshup Technology Gulf Limited. This move aligns with the Kingdom's Vision 2030 digital transformation goals. Gupshup's offerings include the Conversation Cloud platform and ACE LLM, a domain-specific generative AI model designed for Arabic-language interactions, aiming to enhance customer engagement through AI-driven conversational experiences.

Saudi Arabia Conversational AI Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on component, type, technology, deployment, organization size, and end user.

Component Insights:

• Platform
• Services
  • Support and Maintenance
  • Training and Consulting
  • System Integration

The report has provided a detailed breakup and analysis of the market based on the component. This includes platform and services (support and maintenance, training and consulting, and system integration).

Type Insights:

• Intelligent Virtual Assistant (IVA)
• Chatbots

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes intelligent virtual assistant (IVA) and chatbots.

Technology Insights:

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

The report has provided a detailed breakup and analysis of the market based on the technology. This includes machine learning, deep learning, natural language processing, and automatic speech recognition.

Deployment Insights:

• Cloud-based
• On-premises

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

Organization Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises

The report has provided a detailed breakup and analysis of the market based on the organization size. This includes large enterprises and small and medium-sized enterprises.

End User Insights:

• BFSI
• Retail and E-commerce
• Healthcare and Life Science
• Travel and Hospitality
• Telecom
• Media and Entertainment
• Others

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes BFSI, retail and e-commerce, healthcare and life science, travel and hospitality, telecom, media and entertainment, 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 Conversational AI Market News:

• In April 2025, Qatar Airways announced the launch of Arabic-speaking capabilities for Sama, its AI-powered digital cabin crew, at ATM Dubai. Developed by UneeQ, Sama offers real-time, voice-enabled booking assistance and travel guidance. This enhancement aims to provide culturally relevant, accessible interactions for Arabic-speaking travelers, including passengers from Saudi Arabia, reinforcing AI’s role in transforming customer service in the regional aviation sector.
• In February 2025, Saudi-based Unifonic partnered with AI-powered CXM platform Lucidya to integrate social listening and sentiment analysis with conversational AI tools. Announced at LEAP in Riyadh, the collaboration enables a unified solution for brands to drive targeted, omnichannel customer engagement using Arabic language capabilities. This partnership enhances AI-driven customer experience across Saudi Arabia’s digital and retail ecosystems.

Saudi Arabia Conversational AI Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia conversational AI market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of component?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of type?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of technology?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of deployment?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of organization size?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of end user?
• What is the breakup of the Saudi Arabia conversational AI market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia conversational AI market? 
• What are the key driving factors and challenges in the Saudi Arabia conversational AI market?
• What is the structure of the Saudi Arabia conversational AI market and who are the key players?
• What is the degree of competition in the Saudi Arabia conversational AI 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 conversational AI market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia conversational AI 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 conversational AI 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.