Significant advances have been made during the past few years in the ability of artificial intelligence (AI) systems to recognize and analyze human emotion and sentiment, owing in large part to accelerated access to data (primarily social media feeds and digital video), cheaper compute power, and evolving deep learning capabilities combined with natural language processing (NLP) and computer vision. According to a new report from Tractica, these trends are beginning to drive growth in the market for sentiment and emotion analysis software. Tractica forecasts that worldwide revenue from sentiment and emotion analysis software will increase from $123 million in 2017 to $3.8 billion by 2025. The market intelligence firm anticipates that this growth will be driven by several key industries including retail, advertising, business services, healthcare, and gaming. According to Tractica's analysis, the top use case categories for sentiment and emotion analysis will be as follows: "A better understanding of human emotion will help AI technology create more empathetic customer and healthcare experiences, drive our cars, enhance teaching methods, and figure out ways to build better products that meet our needs," says principal analyst Mark Beccue.
Best-in-class companies understand they are in the customer experience (CX) business, and McKinsey reports that successful ones are seeing revenue gains of 5% to 10% and cost reductions of 15% to 25% within 2 to 3 years. The evolution of CX is being driven by several key factors, including the digitization of society and data, customer demand for more control and better outcomes in their commercial relationships, and the correlation between emotional connection and customer satisfaction. Tractica has identified six use cases where artificial intelligence (AI)-driven solutions will propel CX: customer service virtual digital assistants (VDAs); live agent assist; e-commerce and sales VDAs, sentiment/emotion analysis for product/market research; sentiment/emotion analysis in retail; and sentiment/emotion analysis in healthcare. Collectively, spending on AI-driven software for these use cases will reach more than $3.2 billion in 2021 and grow to more than $9.3 billion in 2025. This Tractica white paper explores the market issues surrounding these six use cases.
Andrew Greenstein, an app developer from San Francisco, started journaling a few months ago. He tries to write for five minutes every day, but it's challenging to set aside the time. Still, he's read that journaling reduces stress and can help with goal-setting, so he's trying to make it a habit. At the Disrupt London Hackathon, Greenstein and his team built The Emotion Journal, a voice journaling app that performs real-time emotional analysis to detect the user's feelings and chart their emotional state over time. By day, Greenstein is the CEO of SF AppWorks, a digital agency.