What is an AI Chatbot?
Chatbot pop-ups are increasingly seen on e-commerce sites and company websites. Chatbots in which AI answers questions are currently becoming increasingly popular.
In fact, there are other types of chatbots as well as those operated by AI. In this article, we will explain the basics of chatbots and the advantages of introducing AI chatbots.
At the end, we will also explain how to introduce them without making mistakes and tips on how to operate them successfully, so please refer to this article.
Communication Business Avenue has been helping some of the world’s largest companies to integrate call center systems and digital communication tools for the past 16 years.
Table of Contents
- Chatbot basics
- Advantages of AI chatbots
- Disadvantages of AI chatbots
- 13 examples of AI chatbot applications
- How to introduce AI chatbots without making mistakes
- 3 points to keep in mind when introducing AI chatbots
- 2 tips for successfully operating AI chatbots
- Trends in AI chatbots
- What is AI chatbot LivePerson?
Essentially, a chatbot is a software program that can interact with human users, with the help of written language, most commonly through online messaging applications. It is sometimes referred to as an ‘automated conversation program’ using text. The use of chatbots by firms and companies in the US has noticeably increased since 2016.
Types of chatbots
- AI chatbots
- Scenario chatbots
AI chatbots are a type of chatbot that uses Natural Language Processing (NLP) to learn and make decisions of it’s own during an interaction with users. Guided chatbots are the type that chat according to a predefined scenario.
Differences Between AI Chatbots and Scenario Chatbots
AI chatbots are capable of self-learning based on a vast amount of data and can give flexible answers. They are able to recognise the user’s speech and habits while responding to them. In addition to answering questions, chatbots can also analyze user trends and suggest services. It can respond to free-text, which is a feature of high customer satisfaction.
Advantages of AI Chatbots
Advantage 1: Reduced Workload
Advantage 2: Increased Touchpoints With Customers
Advantage 3: Marketing use
Conversations between AI chatbots and users can also be a goldmine for marketing insights. The current needs of your customers can be understood from their interactions with your bots. For example, analyzing user queries such as “I want to know about product X” or “solution X is inconvenient” can help you to understand your customers and develop new products that better address their needs.
Advantage 4: Increased sales
Advantage 5: Lower the barriers to enquiry
Advantage 6: Multiple Enquiries Can Be Handled Simultaneously
Advantage 7: Knowledge Accumulation
Disadvantages of AI Chatbots
Disadvantage 1. Time Is Needed to Start Operation
- Possible questions and answer phrases
- Conversation flow scenarios
- Language variation (e.g. ‘I’m a customer’, ‘I am a customer’)
Disadvantage 2: Some Questions Cannot Be Handled
Disadvantage 3: Cannot Handle Many Questions at Once
AI chatbots require a high level of literacy from users in some areas. For example, they may not be able to respond to more than two questions at a time. There needs to be a process of asking only one question, waiting for an answer, and then asking the next question once the answer has been received.
13 Examples of AI Chatbots in Use
In some cases, AI chatbots are operated in combination with an automatic translation function. The actual response flow is as follows:
- Instant translation of foreign language queries
- Create a draft response using the Japanese database
- Translate into the language of the query and reply.
This is often the case in the tourism industry, where there are many inbound visitors, and in municipalities with many foreign citizens. B-Spoke’s chatbots are highly valued in the tourism industry and local government.
AI chatbots are being used in the UK for medical advice: according to the AI White Paper 2019, there are examples of medical advice from AI chatbots prior to a video interview with a doctor. This measure can reduce unnecessary hospital visits.
Chatbot eCommerce transactions are projected to amount to $112 billion by 2023
Chatbots can help to drive retail sales by leveraging ‘push’ factors like upselling, marketing, and cart recovery notifications. As a result, Juniper Research predicts eCommerce transactions via chatbots will reach $112 billion by 2023.
For example, the US Department of Homeland Security have developed ‘EMMA’ a chatbot intended to handle queries and requests related to immigration, green card, passport and other services offered by the department. EMMA currently handles an average of 1 million interactions per month and includes support in both english and spanish.
Chatbots are also finding innovative use cases in the restaurant and catering industry, being used to make reservations, show menus to potential customers, take orders, and collect customer feedback. The trend towards chatbot use within the catering industry is backed up by hard data – one study showed that over 71% of clients prefer using chatbots when checking their order status. Also, about 62% of Gen Z would prefer using restaurant bots to order food rather than speaking to a human.
Non-life Insurance Companies
- Purchase match tickets
- Order food during the match and have it delivered to their seats
- Purchase merchandise from the gift shop
- Get updates on players
- View club standings and match results
How to Implement a Fail-Proof AI Chatbot
Decide on the purpose of introduction
- Call volume reduction
- Cost reduction
- Conversion Rate (CVR) improvement
- Improved customer satisfaction (CSAT)
Focus on customer satisfaction
- Designing a pathway for customers to use the chatbot
- Chatbot scenarios
- Extraction of contact intent.
Decide on a dedicated contact person
Combine manned chat
- Percentage of correct responses
- Resolution rate/number of surveys resolved
- Zero hits rate/number of hits
- Customer satisfaction
- Usage rate (after chatbot guidance has been initiated via pop-ups, etc.)
Three things to keep in mind when introducing AI chatbots
- Spare yourself the cost and hassle of implementation
- AI chatbots are not a panacea
- Take time to design the conversation
Involve operators in building & updating your chatbot
- Check whether the business requires identity verification.
- Do not reduce the number of inputs by force
What is AI chatbot LivePerson?
- Analyzes the flow of user conversations and can predict what will happen next
- Determines the situation and switch to a manned response
- Good at front-loading per requirement (proposing FAQ answers, routing to the person in charge and bot responses according to needs)
- AI systems that are easy to tune