An AI-powered chatbot is a smarter version of a chatbot (a machine that has the ability to communicate with humans via text or audio). It uses natural language processing (NLP) and machine learning (ML) to get a better understanding of the intent of humans it interacts with. Also, its purpose is to provide a natural, as near human-level communication as possible.
Companies most likely to be supporting bots operate in the health, communications and banking industries, with informational bots garnering the majority of attention. However, challenges still abound, even among bot supporters, with lack of skilled talent to develop and work with bots cited as a challenge in implementing solutions, followed by deployment and acquisition costs, as well as data privacy and security.
Online chatbots save time and efforts by automating customer support. Gartner forecasts that by 2020, over 85% of customer interactions will be handled without a human. However, the opportunites provided by chatbot systems go far beyond giving responses to customers’ inquiries. They are also used for other business tasks, like collecting information about users, helping to organize meetings and reducing overhead costs. There is no wonder that size of the chatbot market is growing exponentially.
Conversational bots work in a similar way as an employee manning a customer care desk. When a customer asks for assistance, the conversational bot is the medium responding. If a customer asks the question, “What time does your store close on Friday?” the conversational bot would respond the same as a human would, based on the information available. “Our store closes at 5pm on Friday.”