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Influence of chatbots on your business

Billy Yann
Data Scientist
Deep learning and machine learning specialist, well-versed with experience in Cloud infrastructure, Block-chain technologies, and Big Data solutions.
June 28, 2019

ChatterBot is a name for conversational programs coined by Michael Mauldin, the master brain behind the first Verbot, Julia created in 1994. A chatbot is an advanced software program or artificial intelligence that helps businesses to communicate efficiently via any modes like audio or video. The conversational bots are designed to realistically replicate the human way of communication, and thus they can perform as a human conversational partner, and reply to business talks or chats. The chatterbot has great influence in today’s businesses and plays a vital role in the dialog systems for various realistic purposes including customer service, marketing, promotion, information acquisition, etc. The conversational interface has highly helped for the augmentation and accomplishment of many complex business goals.

Why chatbots are important for business?

Taking care of the business and clients manually sometimes seems a hard task. From time to time it may lead to the loss of customers, if not responded on time. It is crucial to make sure that every customer is heard and answered for a strong business. The Conversational AI introduced will help the business profiles to guarantee that no client is left out with less priority. The chatbots can be of assistance to act in response to the messages received making it effective for the business.

How do the chatbots work?

The creation and completion of chatbots is an ever-expanding area. They mainly make use of advanced technologies heavily related to artificial intelligence and machine learning. The chatbots can be accessed by any virtual assistants, messaging apps, individual organizational apps or websites. Some chatbots make use of refined natural language processing systems, but many others just scan for keywords within the entered details, and then give a reply with the most identical keywords, or the most similar wording pattern, from a pre set database. The bots typically come into view as one of the user's contacts, but can occasionally act as participants in any group chat or conversations. No longer is it a tiring business to talk continuously to someone. With the talk bots, a large customer based business can be easily handled. It also ensures a brand identity and quality for the business.

The Usage of Chatterbot

Chatbots can be used for different business purposes. They are inevitable in both large-scale and small-scale businesses these days. They can even be classified based on their usage and intentional industrial purpose. For example, chatbots for e-commerce, communication, customer support, finance management, HR support, marketing, etc. are commonly used by businesses these days. They work using messaging apps and speech-based assistants to automate messages and highly support to create personalized customer experiences.

The successful implementation of chatbots

Almost 70 % of companies these days make use of chatbots for comfortable business deals. Many banks, insurers, e-commerce companies, airlines, hotels, retailers, health care providers, government entities and restaurant chains have used chatbots to improve corporate communication, increase customer engagement, and as additional ways to enhance the sale.

In future, the artificial intelligence (AI) would be in major stipulate by the consumers to make connections as seamless as possible with businesses. By 2020, more than 85 % of customer interactions in the retail industry will be enabled and managed by chatterbots like artificial intelligence based systems. Many developers have envisioned the need to develop mobile applications in the retail industry and have created huge code based for the industry.

AI makes insurance more personalized, chatterbots are also used to gather and feed granular data about individual customers to company databases. The AI backed insurance assist will gather information by surveying customers in-depth questions about their habits and other risk factors, analyze photos of crashes, attune itself to patterns that suggest fraudulent claims, and factor in readings from “internet of things” appliances and trackers that upload data to the internet in real time.

AI can pick up identify patterns and connections that even human brains fail to identify, and answer questions about banking issues in real-time. Financial institutions are already finding success with AI enabled chatterbots. The various banking services enabled by AI includes personalized Financial Services, Voice Assisted Banking, Customer support, etc.

Help with Communication

Artificial Intelligence is highly integrated into many areas including marketing, communication etc. The fast growing AI technologies for consumer-facing industries include chatbots and Virtual Personal Assistants (VPA). They are now highly used for communicating internally and externally by business organizations. These technologies powered with autonomous agents to facilitate an ambient user experience for applications, services, and enhanced commerce. On the enterprise side, more than 50% of IT organizations are experimenting with AI in various forms such as Machine Learning, Deep Learning, Computer Vision, Image Recognition, Voice Recognition, Artificial Neural Networks, and more. As one of the advanced version, chatterbots are highly demanded ones for businesses.

Chat bot

Chatbots can be used for Company internal platforms

Companies can effectively use chatbots for internal communication. Organizations understanding its flexibility are exploring different ways to use chatbots internally for example for Client Management, Customer Support, Human Resources, or for advanced IOT projects. In many large companies, chatbots are used to unlock and share information and knowledge more proficiently. The technology enabled systems will help to reduce the errors in answers with artificial intelligence like natural language understanding (NLU), natural language generation (NLG), machine learning and deep learning.

Limitations of Chatbots

As there are many benefits with chatbots for businesses, there are some limitations too. They can influence businesses both good and bad.

- The database is fixed and limited

- Cannot succeed in dealing with an unsaved query

- Language processing may be challenged with a change in accents and mistakes

- Unable to deal with multiple questions at the same time

- Limited conversation opportunities

- Lack of empathetic understanding

- Chatting with a machine can psychologically irritate customers

No limitations are stopping chatter bots from changing the trends in business. The field is of day to day advancements and the technology will cover up all the limitations in the near future with advanced versions.