Chatbots and Conversational AI: What It Is and What It Isn’tby Meenu EG January 23, 2021
Demystifying common myths surrounding chatbots
The origin of chatbots can be traced back to the 1960s. Joseph Weinbaum created ELIZA, the chatbot, inside the MIT Artificial Intelligence Laboratory. It used simulations and gave responses and open-ended questions to users. For a long time, this Natural Language Processing (NLP) based chatbot created an illusion of being human. We are now in a digital age with more human-machine interaction happening. The journey from rule-based chatbots to AI-driven conversational chatbots helped improve industries and their user-experience. Chatbots are cost-effective, time-saving technology with maximum ROI, used to extract the best business solutions possible.
Chatbots: Truth and Myth
Chatbots are now a significant part of customer interactions and HR management. Chatbots use Natural Language Processing programs and machine learning to interact with users through a chat interface. They understand the end-user needs and guides them towards a positive outcome. AI-driven chatbots use artificial intelligence and machine learning to analyse a phrase rather than focusing on keywords. This helps them draw inferences from customer behaviour and act accordingly.
Industries these days are striving to establish their place in the market. They expect to consistently improve customer-experiences with changing market trends. Chatbots helps boost customer interaction and analyse market trends. Bots take up the repetitive questions and provide a solution in real-time with lesser errors.
Myth 1- Chatbots will replace humans and reduce employment opportunities
Chatbots and AI are faced with insecurities. A belief that they would reduce jobs and replace people has been looming over for a long time. Humans are irreplaceable and technologies like AI work alongside humans to improve business outcomes. Chatbots take up mundane and repetitive tasks that need less skill. This helps people invest their time and energy in more skill-based tasks. Chatbots are cost-effective and time-saving. It will create a space for increased innovation and productivity.
Myth 2- Chatbots will takeover mobile apps
The truth is, chatbots and mobile applications can co-exist. Chatbots and applications have different features. Mobile apps serve a visual experience while chatbots are usually conversational. Chatbots use messenger platforms like Slack whereas apps need storage space. They are distinct and they complement each other.
Myth 3- Customer interaction is the only use
The capabilities of chatbots are not limited to customer services. They analyse data and derive insights to boost sales and identify trends. Chatbots are used to schedule meetings, predict risks, improve cybersecurity, etc. Their capabilities are explored in the field of education, where chatbots can be used as virtual tutors. Chatbots can be applied in a variety of industries like finance, marketing, banking, consumer services, and education.
Shifting towards conversational AI
Customer experience is the power key for any business. Chatbots with conversational AI make optimum use of the technology to provide the best outcomes. Conversation AI uses voice-based interactions apart from textual chats. They enable a personalised experience with interactivity and instant response. Conversational AI makes users feel that they are interacting with a person and not a machine. The AI algorithms understand the user’s context, location, and system to provide the best solutions.
The two-way intuitive interaction engages the users and delivers accurate responses within a short time-span. Since conversational AI holistically interprets the end-user, it becomes easier to understand consumers and improve business strategies according to the market trends.