What is Chatbot?
Want to know why chatbot technology is becoming quite popular these days? Then we will let you know a few things about chatbot technology. Many of us love to convey things in our mind to someone else. Getting a solution by making a conversation is more interesting than by searching for it.
Chatbots are based on this concept. They offer the most interactive way of talking to audiences and converting them. As per the report of Grand View Research at a CAGR, the estimated market size of Chatbot technology by 2025 is going to be $1.25 Billion. Here in this article, we will be providing you with the ultimate guide to Chatbots and how can you use them to enhance your business. People are really confused about Chatbot and a number of questions pop-up in their head like what is Chatbot? How does it work? And so on. so, let’s first understand what do we actually mean by bots?
What are bots?
The software which is powered by artificial intelligence to perform certain tasks without the help of humans is known as a bot. This software can actually perform several operations on their own which means, they don’t require human interference. Chatbots are the most frequent models of bots and these can make conversations with users and they are versatile at the same time.
What is Chatbot Technology?
The Internet has evolved a lot in recent years and it is making things easier for users with the passage of time. Messaging platforms are also working in the same direction. A Chatbot is an application of artificial intelligence that you can interact with either by your voice or text. Now how the bot will behave, completely depends on the level of complexity in that bot. They can tell you weather reports and solve your internet issues as well. These can be used with any messaging platform like Facebook messenger, Telegram and so on. These chatbots can be used for humour as well as to provide any valuable information.
For Example, Suppose if you are looking for any product on any website, you will have to do research on that website and then you will be able to purchase it. If that website makes a bot and sets it up on Facebook messenger so that you can message it. You simply tell it what you are looking for and it will provide you with the options. There are a number of such examples of Chatbots like Newsbot, Weather bot, Banking, and Finance bot, Customer Service bot, etc. The list goes on and on. Bots can be created according to your imagination hence possibilities are endless.
How does Chatbot work?
You must have thought about the role of artificial intelligence behind chatbots. But basically, there are two types of chatbot; one is a very basic one which is based on certain rules and the second one is more advanced which is based on machine learning.
Basic chatbots are very limited when it comes to their functions. They are meant to answer basic questions and respond to basic commands and in case you make a wrong input they won’t be able to answer you. The smartness of these bots depends on how they are programmed.
Whereas Advanced chatbots use artificial intelligence and they are not limited to specific commands only rather they can understand your language as well. Such bots keep learning from the conversation that they make with users.
What is a Chatbot Development?
First of all, you will have to set up your mind, by that we mean you will have to figure out what type of problems are you going to solve using your chatbot and on which platform (Facebook, telegram, etc.) your bot will run. You will have to figure out the server from where your bot will operate and what type of service will be used to build your bot. Chatbots can be created on a number of platforms like Facebook messenger, telegram, slack, Kik, etc. It all depends on how you think and how creative you are. You will have to plan everything and implement it while building your chatbot.
Experts believe that creating a successful chatbot doesn’t depend on how technical you are rather how creative you are. A successful chatbot is the one where users would love to come back and chat. In the last few years, artificial intelligence has witnessed an evolution through which if anyone who is well versed with programming can actually introduce a basic level of artificial intelligence in their products.
Chatbots for Business Enhancement
Smartphone users are investing the major portion of their day on messaging platforms rather than browsing on the internet. A business can only propel if it is made to reach the right audience and these days most of the internet users are highly active on different messaging apps. Hence chatbot is a great opportunity if you are looking to take your business to the next level. Let us have a look upon some of the most important benefits of Chatbots that all kinds of businesses should pay attention to-
- Chatbots are highly effective in meeting the expectations of the customers, so with them, you can expect better open rate, engagement and personalized experience.
- Chatbots excite your customers and increase your conversion rates.
- Chatbots would never replace humans to function instead they will make human interactions more productive and convenient.
- Chatbots will cut down the operational costs.
- You can expect progressive avenues for marketing and sales with the help of chatbot technology.
- Sales and customer services are positively impacted by Chatbots.
- You can use Chatbots to showcase new products and services.
- Nature of marketing can be positively and conveniently influenced by Chatbots.
- Customers can purchase products via Chatbots.
- Businesses can use Chatbots for sending notifications to customers.
Chatbots can be most commonly be used as –
- Virtual Assistant: This is the most commonly used feature of chatbots. Businesses are using this at a great extent. When it comes to customer service a lot of businesses these days rely upon chatbots and they are really exceptional at this. Since a lot of users come with basic questions on the different business website hence answering them is not difficult for software powered by artificial intelligence. Booking services, buying the product and so on is nothing difficult for chatbots. With the introduction of chatbots as a virtual assistant, human resource can be better used in other serious areas. With the introduction of chatbots, it has become easier for businesses to ensure 24/7 customer service which is one of the most important factors behind building a great customer base.
- Idea generation: One of the best features of artificial intelligence is that it can learn on its own. Data analysis is always one of the most important factors behind the success of any business hence businesses keep their data analysts. With the introduction of this artificial intelligence software, the data can be better analyzed. Chatbots can learn from the data available in the database of any business through which a better analysis report can be prepared and businesses can operate well. Chatbots can better adapt according to the condition with their smart learning.
- Automation process: Whenever we talk about artificial intelligence the first and foremost thing that strikes our mind is that they perform automated tasks, Yes, they are really good at this. Chatbots can automate different processes depending upon the situation. This feature can be well used by businesses in collecting data which is further used to prepare analysis reports.
- Working on unstructured data: 4/5 of the digital data is not structured which is the major reason behind the poor analysis of digital data. Chatbots which are powered by artificial intelligence can organize and structure this data in a comprehensive manner. This structured and well-organized data can be better comprehended hence better analysis report can be prepared which is extremely important behind the success of any business.
Future of chatbot
One can surely say that in future we are going to witness the messaging platforms and artificial intelligence working together. Since the interest of internet users is increasing in messaging apps, the opportunities of chatbots are increasing as well. In order to run the chatbots in the best way we need to train it like that and for that we need to feed it with a huge set of data.
Artificial Intelligence will first learn from the conversation and then it will work accordingly. Business owners have understood if they want to make their business successful then they will have to do exactly what the users want. Chatbots can be created according to one’s requirement. You can actually customize it according to your need.
Artificial Intelligence is definitely going to mark its presence in future and chatbots will surely be loved by users. Chatbots are still in the initial phase and they are being improved in various areas. One thing is certain that we will see an improved version of chatbots in the future.
Author: Ramya Swetha Bandaru – HR Manager