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Artificial Intelligence, Chatbots

Chatbots: Rising Competition among Mobile Apps

Our current IT business landscape is one that is subjected to constant change which depends on factors like fiercely growing competition, access to newer technology, maintaining and an effortless user experience in order to remain within the eyes of our target users. This vastly surging ocean of potential users and clients requires a more reliable means of scaling demand and change in preferences. Human nature prevents us from functioning as well as machines therefore who better to hire for the job!

Our current IT business landscape is one that is subjected to constant change which depends on factors like fiercely growing competition, access to newer technology, maintaining and an effortless user experience in order to remain within the eyes of our target users. This vastly surging ocean of potential users and clients requires a more reliable means of scaling demand and change in preferences. Human nature prevents us from functioning as well as machines, therefore, who better to hire for the job!

Every day, AI is being more intimately accepted by companies to manage crucial business data and gain significant insights while maintaining consistent interaction with clients. AI-based Chabot’s have already taken the market by storm, given their contextual conversing programming. It is one of the most popular trends for helping out businesses collect essential data while also boosting relevant user engagement. It eases the pain faced by entrepreneurs and virtual receptionists by taking over the job of dealing with hundreds of individuals in the most courteous, efficient manner possible. It collects and records real-time client behavioral data while also learning in the process to better its interaction, given its AI-powered design. AI technology, with the help of smartphones, is now in the palm of everyone’s hand.

What are Chatbots?

Chatbots, which is short for chatterbots, primarily emerged as messaging apps which engage in conversation with users by referring to pre-fixed enquiry answers and FAQs. These were mostly simple questions since back when chatterbots were initially introduced, they were incapable of complex humane conversations. Then later on, after being integrated with the latest emergent technologies like Artificial Intelligence (AI) and Machine Learning (ML) Chatbots began to better understand a user’s intent, analyze behavioral data and adjust replies in a conversational manner to answer queries in varying contexts. The chatbots of today can also engage in a voice conversation, process natural languages, and decipher queries unhindered by any vocal or tonal changes.

Chatbots are simply computer programming that is automated in order to interact with a large number of customers as human beings, all at the same time. This is why major brands and MNCs like Tommy Hilfiger, Disney, CNN, and Dominos have all employed chatbots to interact on their behalf. Since it is not limited to any physical human interaction, it makes the scaling of their business unfathomably efficient while costing only a fraction to maintain and install. Large organizations can save millions by simply investing in smarter and better Chatbot technology.

Types of Chatbots:

  • Pre-fixed Guidelines Bot: Chatbots that depend on set guidelines during their interactions, is slightly limited when it comes to the conversational experience. It is designed to only respond to a set of previously enlisted requests, responses, and vocabulary already present in its coding. One such example of a limited chatterbot would one use in banking. First, the bot would ask the user a set of questions like “would you like to make a deposit”, “make a transfer”, or “pay your bill”. The user shall reply with an action he or she would like to have carried out.
  • Machine Learning Bot:  A chatbot programmed with Machine Learning is based on a neural learning system inspired by the neural nodes of the brain. It is meant to self-learn as it is manually introduced to various new dialogues, texts, and conversations. This automatically increases its potential to interact with each new interaction. One such ML Chatbot would be the Facebook messenger app that creates new platforms for buyers and sellers to interact on.

Growing Market for Chatbots

The phenomenal increase in demand for a more effective means of customer engagement is supplemented by what the latest Chatbot technology has to offer. Back in 2018, we knew that the Chatbot market was mostly overrun by rule-based programs but now, a more personalized approach is currently in demand. This means that currently, we will be seeing a rise in AI integration, natural language processing, and multi-lingual customer support among Chatbot engines. It has the potential to seep its way into a wide range of websites, mobile applications, and social media sites.

Recent surveys have revealed that the market demand for Chatbots mostly comprised 71% of millennials who range between the ages of 18 to 30. The younger focus groups are more favorably disposed towards interacting with AIs and Chatbots on a digital platform. The digital economy is more or less dependent on these younger focus groups hence more and more brands are embracing the idea of introducing Chatbots as their official online representative.

This expansion is now possible given the operating benefits of growing cloud computing. Aligned with this interface, the chatbot market can be diverted into several business sectors including IT, healthcare, banking, financial services, media and entertainment, travel and tourism, and e-commerce.

Why are Chatbots important to a Business?

Can we recall the times before the age of predictive text? It was a simpler time where every task needed a human to carry them out manually. Mundane everyday tasks can now become more streamlined and efficient with the assistance of programs like Chatbots. In all probability, it is safe to assume that in the present and near future, all businesses will have adopted Chatbots in their daily business operations. The most crucial aspect of any business is human interaction, without it, there can be no business. Even today, there are call centers where people are hired to carry out the task of interacting with people in order to close deals and solve customers’ problems.

Chatbots help establishments restructure this interaction between individuals and the services they require by enhancing their experience. This will give rise to fresh new opportunities for expansion and improve operational efficiency by typically reducing the cost of customer engagement services. More advanced Chatbots are being developed in order to carry out all these functions through automation, minimizing human supervision. Then again, even now Chatbots need to be trained, configured, and optimized to provide the desired results. Even so, it helps us jump further into the future.

Benefits of Chatbots to a business?

So far, we have understood that Chatbots are automated computer programs that interact with customers and users in a human like manner with little to no cost invested in engagement. It is available 24/7 and exponentially improves a company’s customer interaction and user experience. Let’s have a look at the improvements you would see when you engage with a Chabot.

  • Improved User Experience:  You would no longer have to wait for your queries to receive answers. Chatbots based on AI and Machine Learning are empowered with a learning algorithm that upgrades its understanding capabilities with each interaction. You would receive immediate replies the moment you submit your query. This helps users feel that they can rely on Chatbots for prompt information as they don’t need to waste time in getting their dilemma across. Rather they can answer a set of questions and get instant replies on what they need.
  • Product and Content Search: Previously, you would have found yourself spending a lot of time scrolling through options and getting spoilt for choices. What you need then are recommendations, tailored to your individual requirements. Chatbots make your customer’s searching experience easier than ever. All a person has to do is type in a search keyword, upload an image, or enter in voice command and bingo! Dozens of recommendations, all unique to your search requirements will be proposed by the AI powered bot.
  • Personalization: Machine Learning and AI based chatbots are more capable of processing user intent and preferences than pre-fixed bots. Analyzing user intent will enable a chatbot to provide customized search recommendations so that the user won’t need to put themselves through too many hassles in order to get what they are searching for.
  • Proper Onboarding Experience: Why do most apps or websites fail to have a major portion of their traffic return to the site or app after their first visit? This is because they weren’t able to provide a good enough onboarding experience. Most apps don’t guide first-time users through their interface which is why they get all confused, hence feel discouraged from returning. Chatbots can serve as a guide in this accord and clarify any doubts in terms of using the app or site.

Industries Where Chatbots are heavily employed

Every day, Chatbots are growing to be smarter and more popular among online users. The market right now is oversaturated with multiple players, all of whom have become highly competitive with their Chatbot models. Many of them have utilized inorganic marketing strategies to introduce their virtual products such as how in January 2019, Ingenico hosted a product launch to introduce ‘IBM Watson’ – a chatbot that enhances user experience with the company. Subsequently in 2018, Lupin Limited introduced ‘Anya’, which is programmed to provide medical information to user-health queries. Chatbots are being used for a variety of business purposes expanding their application potential with each new variant. Some companies are engaged in mergers to come up with new innovations such as how Qlik Technologies Inc. merged with Crunch Data Inc. AI development team to acquire CrunchBot, an analytics bot powered by a powerful AI. Similarly, Microsoft acquired XOXCO Inc.

In the past couple of years, enterprises have been finding newer ways to apply Chatbots to their growth strategy by ensuring an enhanced user experience, boosted customer support, and a higher rate of retention. Not only do these chatbots ensure a smoother customer experience and greater conversions in business but most importantly, they provide deeper customer insights through their continuous engagement with users.

There have been so many innovative uses of AI and chatbots that sometimes it gets hard to keep track of, but here are some of the best-known chatbots that have brought in a fresh new approach;

StubHub: Are you tired of missing out on your favorite concerts and live events? The StubHub bot ensures that users are always made aware when bookings are opened and that they don’t miss out through personalized alerts.

Erica: ‘Erica’, the Bank of America’s designated mobile app’s digital assistant enables customer interaction through voice as well as text messages. It serves as a trusted information center for users to get relevant information on savings, investments, and multiple financial matters.

Shopbot: This list would be totally pointless if it didn’t include the e-commerce sector. The eBay shopbot is like your very own personal shopping assistant which assists customers in finding the best deals and personalized recommendations. You can also have a personalized conversation with the bot and upload an image of the specific product you are looking for.

Whole Foods: This food retailer app has an onboard AI that aids customers in browsing the right set of products that are aligned with their requirements. It is also integrated with Facebook messenger so that users can get their recommendations in just a few taps. There is also a unique feature that involves requesting the bot for food recommendations with emojis. Customers can ask for cuisines or recipe requests.

Top Industries with growth expansion using Chatbots

E-Commerce: One of the most primary industries which have seen the expanded growth of Chatbot and AI technology is the E-commerce sector since it requires constant interaction with global customers in order to lock in orders, offer recommendations and provide an overall fun interactive session.

Healthcare: Usually, doctors run on a very tight schedule due to which many people have to wait in a long queue or adhere to strict appointments before they can get a consultation. But, with the aid from Chatbots, relevant medical information can now be available at all times.

News Publishing: We live in a time where there is specific followership for everything. AIs and Chatbots can personalize the experience of receiving news updates by sending out alerts to users specific to their search habits.

Conclusion

Chatbots technology has embedded itself into our daily habits and the way we search for information. Information hubs like smartphones, tabs, and more are going to see a greater rise in trends since very soon almost every application would have an AI or Chatbot behind it.

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