Advancement of Chatbot Creation Fuels Business Expansion Narrative
A leading travel website recently implemented a chatbot for booking and customer service, as more businesses increasingly embrace the technology. The user's mother, who booked a flight through the site, received her PNR number via a WhatsApp message from the chatbot.
As an employee of a company specializing in chatbot development, the user has witnessed the growing fascination with the technology, which mirrors the industry trend. The adoption of chatbots is no longer novel, with companies across various sectors investing in the technology after analyzing its pros and cons.
The development of chatbots using natural language processing (NLP) has revolutionized customer engagement, particularly in the service sector and other industries. This development propelled chatbots from a rising trend in 2017 to mainstream technology in 2019 and beyond.
A chatbot is a computer program that simulates human conversation via text chats, voice commands, or both. It can either be integrated into existing applications or work as a standalone app like Siri.
According to a report by Grand View Research, the international chatbot market is expected to reach $1.25 billion by 2025, growing at a compound annual growth rate (CAGR) of 24.3%. Large enterprises have emerged as the largest end-user segment, with the marketing domain experiencing the most growth. The Asia Pacific region is anticipated to witness significant growth due to technological advancements in prime economies, with the local market projected to grow at a CAGR of 24.7% from 2017 to 2025.
Notable participants in the bot industry include Poncho, WeChat, Baidu, Kik, Babylon Health, Varo Money Inc., SRI International, and ReplyYes, which provide extensive applications in large enterprises by adapting machine learning.
The growing demand for chatbot development can be attributed to its numerous uses in traditional industries, capitalizing on the benefits of a well-planned chatbot design strategy. Messaging apps have transformed industries by making them readily accessible, solving the issue of timely response. However, these apps had limitations, such as customer care representatives not being available 24/7. Chatbots have now alleviated this problem by offering automated responses, excelling in various key performance indicators associated with excellent customer service.
Four industries capitalizing on chatbot development include education, customer service, psychological health, and assistance. In education, chatbots remind students to complete tasks, grade essays, and help upgrade the education system. In customer service, they handle routine queries, enabling faster response times and cost savings for businesses. For psychological health, chatbots prove empathetic and efficient in handling mental health issues by responding to emotion triggers. Assistance chatbots, like Siri and Google Assistant, perform various functions, such as playing music, making phone calls, and booking tickets. Other industries, such as banking, travel, healthcare, and news & publishing, are also adopting chatbot development to remain competitive.
In realized the importance of investing in chatbot development, businesses are now focusing on integrating them into their mobile applications. Companies can opt for readymade platforms or develop their own chatbots using tools like wit.ai, api.ai, textit.in, IBM's Watson, and conversae.ai. These chatbots can handle specific commands or use machine learning, understanding human language as they communicate with users and learning from previous interactions. Machine learning algorithms play a crucial role in making chatbots an integral part of various industries' future, offering programs that learn from previous experiences and patterns. With their versatile applications, chatbots are set to transform the way businesses engage with their customers, automate routine tasks, and enhance operational efficiency.
- In the financial sector, companies are now recognizing the value of integrating chatbots into their businesses, as these AI-powered tools can handle routine queries, offer faster response times, and bring about cost savings.
- When it comes to artificial intelligence, the use of machine learning algorithms in chatbot development is crucial, as they enable these tools to understand human language, learn from previous interactions, and make them an integral part of various industries' futures.
