Virtual agents, whether serving customers through interactive voice response or newer communication mediums such as chat, are in many ways the wave of the future.

The global market for virtual agents is currently worth approximately $223.75 million, according to OPUS Research, but it should grow to $446.25 million in 2015 and $700 million by 2016.

That’s because virtual agents make sense both for the customer and the business using virtual agents.

For the customer, virtual agents are far easier than calling a customer support line and talking with a live person. It is faster and more in line with our digital lifestyle that includes doing our own research and checking transaction details online instead of having to interact directly with a live person. The Millennial generation is even more inclined to this type of interaction, according to many experts on generational differences.

For businesses, virtual agents also make sense: They save costs.

Robotic process automation such as that delivered by virtual agents will help businesses cut roughly half of their business process staff by 2018, according to estimates by research firm Gartner (News - Alert). Keeping customers happy helps improve customer satisfaction, too, which ultimately drives sales and builds brand loyalty.

There was a time when interactive voice response and the concept of virtual agents was a dread for consumers — an inefficient system that many felt was foisted on consumers and only benefited business. But those days are long gone at this point.

That’s because the technology that powers virtual agents has come a long way, and the hassles have mostly been replaced at this point with efficiency. Anyone who has used Apple’s (News - Alert) Siri or Microsoft’s Cortana voice-activated virtual assistant knows that good voice response mixed with access to the Internet equal easy use.

Virtual agents have not only gotten better, but the public relations bump from things like Siri also has helped make consumers more comfortable with the concept of the virtual agent.

There’s still a strong case for live operators, as virtual assistants are only good for basic information. But businesses that recognize this and make it easy to move from the virtual agents to a live operator can both save money and please customers with their virtual agent options.

Taking care of customers and saving money is a good combination.