Artificial Intelligence (AI) is transforming the way people interact with chatbots. The technology is making it easier to talk with modern AI chatbots while in parallel, it is also improving the response quality. Take GPT 3.5 as an example. The AI chatbot uses deep neural networks and Natural Language Processing (NLP) to give conversations a human touch.
It has capabilities like conversational tone, customized responses, continued conversations, and more. Such abilities have made GPT 3.5 one of the most popular chatbots of the decade. Once released in November 2022, GPT 3.5 only took 5 days to touch a user threshold of 1 million around the world.
How do AI chatbot revolutionize customer engagement?
AI chatbots are equipped with several tools that optimize the customer experience. Breaking down its characteristics will help us understand them better.
1. Personalization
AI’s capability to offer personalization is AI chatbots’ biggest strength. AI chatbots are trained using a massive amount of data. And by integrating capabilities of machine learning these chatbots quickly recognize keywords and patterns in customer interactions.
This capability helps chatbots personalize their responses according to customers’ interactions and deliver more relevant responses.
2. Integration
AI chatbots are easy to integrate into websites and applications. There are several APIs, SDKs, and plug-ins available that can be connected to platforms. AI chatbots have also become affordable for small businesses. Several chatbot APIs are available on a subscription basis.
3. 24/7 customer service
Another milestone that businesses achieve by adopting AI chatbots is the availability of 24/7 customer service. Customers can ask queries anytime and instantly get them resolved.
AI chatbots are smart enough to provide order and delivery status, help customers with technical issues, help them find desired products, and more. Another benefit for businesses is that 24/7 customer service by AI chatbots comes at a way lesser cost compared to the traditional process of hiring human resources for separate shifts.
4. Core marketing insights
Any interaction that happens with AI chatbots generates digital data. This data is useful for marketing and R&D research as well. AI chatbots help in collecting data such as what products are being asked about, what services customers expect, when they enquire more, etc.
5. Voice-controlled chatbots
AI enables the hands-free control of devices transforming the overall customer engagement experience. For example, AI chatbots like Alexa can help users control their smart devices using just their voice.
Alexa can play songs, and movies, turn on and off smart appliances, and do much more. For appliances of the present and future, AI-based voice assistants are turning out to be the freedom customers need.
6. Expanded target markets
Chatbots can help you access more markets as well. The tech can be trained using data which makes it easier to train AI chatbots to understand more languages, dialects, and accents. For business users using AI chatbots, this ability can be critical to infiltrating more markets and can even boost the average customer satisfaction rate.
Impact of AI chatbot on businesses: Some case studies
Businesses have been adopting AI chatbots for a while now. So, we have enough examples to refer to that can give us a clear picture of the usability of AI chatbots for businesses. Let’s have a look!
- Conversational Design is an Italy-based conversational marketing organization. The company used the power of chatbots to increase its conversion rates by 40%. Adopt chatbots also helped Conversational Design reduce their costs per lead by 200%.
- Stadtwerke Düren adopted chatbots to automate their resolution strategy. The company adopted the OMQ chatbot and automated up to 55% of resolutions using the tech.
- GetJenny chatbot helped A-Lehdet secure 3x higher chat engagement and over 86% of its customer queries got automated using these smart chatbots.
- HelloFresh Freddy launched a chatbot on its platform which eventually reduced the response time by 76%. The chatbot also boosted incoming messages to the brand by 47%.
How AI chatbots are deployed?
Customers are using several platforms to interact with AI chatbots- websites and apps being the most popular options among them. Using third-party APIs, it is easier for websites and owners to integrate AI-based chatbot solutions into their brand presence. Best AI chatbot apps are well known for being more user-friendly and easier to access helping brands improve their user experience.
Some of the popular AI chatbot APIs existing in the market are –
1. Wit.ai
The chatbot API uses artificial intelligence to train its responses. It can detect several tones, languages, and dialects as well. Using Wit.ai, businesses can tackle even frustrated customers and respond appropriately.
2. Google Chat API
Google has a chatbot for businesses. The chatbot uses a database to generate its responses making it one of the best data-backed resources available. Additionally, being a product from Google, the chatbot also offers good security and quality standards.
Wrapping Up – The future of AI chatbots
AI chatbots have several characteristics that make them likable, being fast is one of them. A report by Userlike says that 68% of chatbot users like the speed of responses chatbots deliver.
More than 40% of users loved chatbots because of their ability to respond outside of working hours as well. Using chatbots, industries like retail, healthcare, banking, and more are becoming more independent. For instance, the retail industry is able to provide more accurate status updates to its customers, and that too, in real-time.
Banking is also leveraging chatbots well. The industry is reducing the overall resolution time. Additionally, customers are able to locate ATMs and banks just through conversations which makes chatbots a preferable option.
