Artificial Intelligence Drives Chatbot Development
Thu, September 29, 2022

Artificial Intelligence Drives Chatbot Development

AI chatbots are considered the key to improving the customer and employee experience. / Photo by: Sebastien Decoret via 123rf


Artificial intelligence used to only exist in sci-fi films, but that’s no longer the case today. Various industries and businesses are investing in this technology to improve efficiency and productivity in all aspects of production and operation. AI use can come in many forms, but so far, one of the most effective is powering chatbots. Oracle, an American multinational computer technology corporation, stated that 80 percent of marketers are planning to use chatbot by 2020.

AI chatbots are considered the key to improving the customer and employee experience. Reports showed that the chatbot market is projected to reach $1.25 billion by 2025. According to Salesforce, an American cloud-based software company, findings of the latest “State of Service” survey of 3,500 customer service professionals revealed that service teams use AI chatbots in several ways. This includes providing self-service in simple scenarios, gathering initial information about services, greeting customers when they call, and providing agents with guidance and recommendations.

The report showed that 64 percent of agents with AI chatbots are able to spend most of their time addressing complex problems compared to 50 percent of agents without it. Thus, it is projected that 53 percent of service organizations will be using the AI computer program within the next 18 months, which is a 136 percent increase. 

Customers have also positive insights about chatbots. The survey reported that 77 percent of customers said that chatbots will transform their expectations of companies in the next five years. It also showed how they are using them, including answering a question (32 percent), getting detailed answers or explanations (29 percent), resolving a complaint or problem (27 percent), receiving customer service (27 percent), and paying bills (23 percent).

How Chatbots Use AI to Assist Customers

With chatbots, companies are able to create speed-enhancing business operations to cater to the need of instant replies to customers. Forbes, a global media company focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle, reported that these computer programs are taking over routine tasks in businesses. They are also being used to monitor and draw insights from every conversation with the customers, and at the same time, learn from them how to perform better in the next one.

Richard Socher, Salesforce’s chief scientist, stated that chatbots can still be developed in the future to take things even further, for example, proposing tactics and strategies for overcoming business problems. “They will probably be able to help us craft marketing messages based on an understanding of the language of all the things that have been successful in the past,” he added.

In contrast, chatbots that are not powered by AI deliver a one-size-fits-all experience to all of the users they assist. Their response to customers is all the same, from a generic greeting to a standard list of menu options. AI removes these limitations.

Here are some ways that chatbots are way better with AI:

Use Contextual Information

According to Freshdesk, an online cloud-based customer service software providing help desk support with all smart automations to get things done faster, AI chatbots can customize their response with customers based on what their questions or queries are. They can also initiate conversations with the users based on what services or products they access and read on a company’s site. In this way, chatbots can converse that is relevant to each user’s interests. 

Offer Preemptive Support

AI chatbots have the ability to anticipate potential issues by picking up patterns in user behavior from their interactions with them. In this way, they can proactively address those issues before they ever cause problems for a customer. The Forrester Research’s “2017 Customer Service Trends: Operations Become Smarter and More Strategic” report explained that AI helps companies “anticipate needs by context, preferences, and prior queries and will deliver proactive alerts, relevant offers, or content.”

Implementing AI Chatbots

While AI chatbots enhance the services offered by companies, businesses should still think about implementing them. Organizations should think of the impact they will have on user experience and understand what they are trying to gain from it. Katie Gibbs, head of AI at IT and business consultancy company BJSS, stated that they should consider looking at areas that might be affected, including potential triggers for complaints, net promoter scores, or a high volume of queries. This is because AI chatbots can also go wrong at times.

For instance, Microsoft created a chatbot named “Tay.” It had its own Twitter account and was allowed to interact with the public. However, the chatbot turned into a racist troll that was very keen on conspiracy theories. According to Information Age, an online site that provides the latest news, analysis, guidance, and research, this is a great example of why businesses should still implement AI chatbots with human intervention to see what people are inputting into the system and monitor how the chatbot is adapting to it.
Chatbots are proving to be helpful to businesses in increasing customer base and boosting engagement. Companies should consider adopting AI since it will elevate the functions and services provided by these computer programs. With AI, brands can build a better interface with their users that will improve their business value significantly. 


Businesses should still implement AI chatbots with human intervention to see what people are inputting into the system. / Photo by: everythingpossible via 123rf