By 
By Jesse Jarvis CEO Kaiko
The shift to an “Empathy Economy” is not just a strategic theory; it is a market reality driven by the tangible returns of Emotionally Intelligent AI. This technology, which enables machines to recognize and interpret human feelings through voice, text, and facial analysis, is creating measurable financial value across various industries.
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The global market for this technology reflects its impact, with forecasts projecting growth from around USD 3.2 billion in 2024 to as high as USD 45.5 billion by 2034.
Business case for Emotional AI
The business case for Emotional AI is built on specific, proven outcomes from its direct application, particularly in the contact center. Insurance giant MetLife, for example, deployed call center AI to analyze customer emotions and vocal tones in real time.
This resulted in a 13% boost in consumer satisfaction and a 3.5% increase in first-call resolution. These results are mirrored across other industries; a meta-analysis of 42 enterprise implementations found companies achieved average reductions of 34% in call handling times and a 39% increase in first-contact resolution rates.
The technology’s financial impact is also significant in e-commerce and retail, where it can lead to higher retention rates and boost conversion rates.
Embedding Emotional AI into core business functions
These results can be achieved by embedding Emotional AI into core business functions. The technology works by analyzing customer interactions to detect frustration or delight, allowing for real-time service adjustments.
This can involve automatically routing an agitated customer to a specialized agent, providing an empathetic chatbot response, or offering a personalized discount to an indecisive shopper. Investing in the direct application of Emotional AI delivers quantifiable improvements in customer satisfaction, loyalty, and revenue.
