When a business moves its services online, it runs the risk of losing the close connection it had with customers. This affects customer loyalty and sometimes means lost revenue. Thanks to technology, some businesses have deployed artificial intelligence (AI) chatbots to keep customers engaged in a two-way conversation.
What is an AI Chatbot?
An AI chatbot is a piece of software powered by artificial intelligence that is placed on websites and other applications to interact with humans.
Chatbots are not a new technology, and it’s worth noting that there is a difference between AI chatbots and flow chatbots. Flow chatbots follow a pre-determined path defined by a developer; AI chatbots are self-trained, meaning they give feedback depending on the information supplied by the customer. They use natural language processing and machine learning technology to turn complex business interactions into simple conversations through text or voice.
This makes AI chatbots smarter because they learn over time.
According to a report by Markets and Markets, the conversational AI market is expected to grow from $4.8 billion in the year 2020 to $13.9 billion by 2025.
AI Chatbots in Business
AI is no longer reserved for large enterprises only. Small businesses can now leverage conversational chatbots on applications such as Facebook.
The demand for chatbots has been driven by customers who need round-the-clock assistance from businesses. In most cases, businesses are slow to adapt to new technologies – especially because of the related costs. But the many benefits of AI chatbots make it worth adopting. Below are some of the ways that AI chatbots are being used in businesses:
AI technology is continuously progressing and no doubt chatbots will also keep changing.
As with every technology, there are some limitations, such as lack of emotional intelligence that affects the depth and scope of a conversation. This means that there are still complex communications that will require humans.
Nonetheless, having AI chatbots as an additional resource to run a business is a sure way to help boost revenue, improve customer experience, and provide a competitive advantage.
However, before jumping on the bandwagon, it is best to first identify areas in your business where you can deploy AI chatbots.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.