Market forces driving AI-based chatbot opportunities

Chatbots are increasingly gaining popularity amongst the enterprises as they help in growing the business by enriching customer service programs. Chatbots are mostly used as an information acquisition tool, where customers extract product details and clarify their queries by interacting with chatbots. Chatbots, by using AI and NLP to imitate conversations with real people, offers a conversational experience to the customers by understanding the context and sentiment during conversations.

The improved accuracy and sophistication of AI are making chatbots more robust and suitable for wider range of applications in various industries. Chatbots have several benefits in diverse areas, i.e., marketing, customer service, inside sales, and employee engagement, to name a few.

Market Forces Driving the AI-based Chatbot Opportunities:

  • Increasing pressure on contact centers: Demand for high turnover rates and reducing operational costs are increasing the pressure on traditional contact centers. Chatbots are helping the contact center with 24/7 availability for their customers, and managing the customer queries quickly and consistently.
  • Technological advancement in AI and NLP: With the advancements in natural language processing, natural language understanding, and ML models, chatbots are moving ahead of keyword matching.
  • Improve customer acquisition and reduce churn: AI-enabled chatbots offer 24/7 customer support, which improves customer satisfaction and serves new customers by effectively solving their issues. Several companies are using chatbots in combination with online chat for resolving issues faster than ever before.
  • Matured chatbot platforms: Chatbot technology is becoming more popular, and so their development platforms are becoming more matured and cost-effective.
  • Cost-effective options for creating chatbots: Conversational AI platforms, which include chatbots and virtual assistant, are representing a promising technology that is expected to cut business expenses at an impressive rate. Vendors, by using deep learning techniques, are creating chatbots in a data-driven manner, which has reduced the initial build time of chatbots from weeks to days.

– Sonam Chawla
ICT – Research Analyst
Infoholic Research