The chatbot is an Artificial Intelligence which conducts a conversation with a human being. Recently, Chatbots have become so popular due to the advancement of technologies and machine learning. Chatbots help in creating business brands and giving the best customer services. There is a noticeable change from conventional mobile app development to Intelligent Chatbots. Proper analysis will help to make Chatbots better and here in this blog, we have mentioned about the latest Chatbot trends to keep an eye on in 2018.
AI isn’t just for Fortune 500 companies anymore. As a matter of fact, thanks to a number of innovations in the last few years, small businesses now can leverage AI technology to improve their operations, connect with their customers on a deeper level and ultimately, boost their sales.
What is a Chatbot Exactly?
There’s no need for overly-complicated phrases or ten-dollar words to explain this: A Chatbot is simply a program that automates certain tasks by chatting with a user through chatting interface.
Simple as that,
Today, some of the more advanced Chatbots are powered by AI, which helps them to solve problems, to send personalize messages and to improve interaction over time. The technology might still be in its infancy, but more than a few people use Chatbots on a daily basis without even realizing it.
According to eMarketer research, “more than 35 million American use voice-activated, personal assistants at least once a month”.
While some people initially thought Chatbots were just a novelty, they’ve officially passed the stage of hype and started to mature. But the matter of the fact is – possibilities of Chatbots are just beginning to be mined and space still has room for growth. Although they are not going to replace human or apps anytime soon, a number of companies are experimenting with different approaches to take Chatbots to the mainstream.
The Current State of the Chatbots Market
And just how close are Chatbots to hitting the mainstream? We can take a look at some market numbers and see. According to a recent Grand View Research report, the Chatbot market is expected to reach roughly $1.2 billion on a global scale, in less than ten years. What’s more, experts are predicting that the market will grow at a compounded annual growth rate of more than 24%.
In 2019, the chatbot has taken over traditional conversational service due to advancement in artificial intelligence (AI). Chatbots have become more AI-driven and are now capable of handling complex human interaction with ease.
Chatbots are capable of working in areas such as processing, payments, and marketing. However, if we are looking at revenue, Chatbot services have the majority of the market share. As Grand View research shows, around 45% of end users prefer them as the primary mode of communication for questions regarding customer service.
In just a few years, more and more companies are going to adopt the technology. If so many organizations are already aware of the use of Chatbots, they’re now starting to feel the pressure to integrate the latest technology in order to improve their business operations.
Chatbots had an amazing year in 2017- it was the year that chatbot was adopted by most of the tech companies. Chatbots helped in improving business processes and giving the best customer service and helped in improving brand image. It's 2019 now and we have decided to make a deep analysis of chatbot trends. The good news is chatbots isn't weakening. Users are more and more keen to know much more about chatbots.
How to fully leverage on chatbots?
Here there is a list of top 10 chatbot trends for 2019
1. Steady Adaptation of Chatbots
We, as humans, are always looking for the next big thing. After all, this is how we managed to prosper as long as a species. And from the looks of things, Chatbots are poised to be the next big platform, which connects customers to businesses.
According to IBM - Per year 265 Billion Customer Requests are recorded. Businesses spent nearly $1.3 trillion to service these requests. Using Chatbots can help them save up to 30% of this.
A few months ago, Oracle surveyed more than 800 marketing professionals on the adaptation of Chatbots. According to the results of the survey, 80% of brands plan on using Chatbots for their customer service efforts in the next 36 months.
At the moment, more than a third of the surveyed marketers – 36% to be exact – said that they are using Chatbots to provide customer service. Since the big dogs are already adopting the technology, it’s just a matter of time before it spreads through the all business sector.
2. Chatbots Becoming More Human-like
As we’ve established, Chatbots are starting to invade numerous business sectors. In addition to native bots – think Apple’s Siri – 3rd-party companies are now helping companies interact with their customers. For instance, you can now order an Uber ride through your Facebook Messenger app.
The main problem with Chatbots is that it feels too “unnatural” to some consumers. The data on the matter suggests that a vast majority of people would still rather talk to a real-life sales rep than talk to a machine because they feel it will be unable to answer their questions properly.
But while older consumers still have trouble identifying the true value of Chatbots, millennials have fewer concerns about the technology.
“ According to Mobile Marketer research, around 40% of millennials say they chat with Chatbots on a daily basis.”
3. Chatbots are more AI-driven now
An AI-powered chatbot is now capable of delivering a personalized experience to clients and customers. One of the finest examples is given by the chatbot magazine is of Bank of America’s, their chatbot is capable of handling any customer query, with predictive analytics the bot can anticipate customers needs and guide them through complex banking procedures - it can help customers to make payments, check balances, save money, etc.
Insurance companies are also some of the early adopters of AI-based chat bot services. A recent Accenture study noted that over half of customers are interested in relevant, real-time offers from insurers.
Insurance companies are employing location-based technology to initiate the claims process automatically, they use chatbots, along with visual tools like live chat to educate the customer on submission, inspections, and documentation claims adjustments and updates them on claim status.
4. Business and Chatbots
“80% of business to customer communication is going to be done through bot messengers within the next three to five years. “ – Mikael Yang
In today’s technology world, Chatbots have become so popular. Large or small scale businesses configure Chatbots to provide assistance to the customers. Market reports show after making an insightful analysis that Chatbots made tremendous growth in 2017 and the year was called “the year of Chatbots” & the good news is it is still continuously growing and helping the businesses to grow more and to give best services to customers using Chatbots. This will help to connect with the consumers in the real-time world.
As per the recent survey, more than 25% of interactions with tech will be conversation based. More and more companies small or large will be seen adapting voice assisted bot for their businesses. Many retailers are creating voice-assisted bots which will help them in checking orders, making purchases and this will ultimately help in delivering good products or services to consumers and creating a good brand image.
5. Deep Customer Insights
Chatbots easily store customer data as per request which can be easily retrieved to make a proper analysis. Though we have witnessed a steady growth of chatbot adaptation in 2018 there are reports that 80–85% of businesses will be deploying more customized result-driven chatbots by 2020.
Artificial Intelligence helps to automate data collection and performs proper analysis to get proper solutions to the queries. Chatbot basically gives answers to the questions of consumers. Chatbot requires proper analyzing marketing team, which can focus where improvement is needed and optimizing it for minimizing the errors and improving the success rate. Advanced and best Chatbots are so intelligent that they improve themselves by learning and give more answers to the questions.
6. Voice Experiences Becoming Mainstream
This year, we saw industry giants like Google and Amazon pushing the “smart speakers” market. For instance, as Geek Wire reports, Amazon has already sold more than 20 million Echo devices. Furthermore, there are over 20 thousand skills on the Alexa Store at the moment.
On the other hand, Google is trying to make voice-activated assistants available on all Android-powered devices, including smartphones, wearables, and even smart TVs. And from what it seems, this trend will probably continue in 2019.
Plus, a number of voice-powered but builders, such as PullString have emerged in recent years. These companies are trying to help smaller organizations build their own voice-based Chatbots. There are still challenges; developers are working hard on bringing Voice UI to the mainstream.
7. The Rise of Conversational Bots
While this may sound harsh to some people – we need to start learning how to communicate more effectively, especially with our customers. At times, it feels like people aren’t really listening when customers are trying to tell them something really important.
So the area some of us are most excited about is conversational interfaces. Since Natural Language Processing is still not where it needs to be – more on the state of NLP later – companies have started experiment with interface-based Chatbots. This year, we saw a ton of new use-cases for CI.
Companies such as Acquire have started to work on “conversational marketing” in order to help small businesses get rid of frustrating forms with conversations. What’s more, companies have started working on personalized user-experience by leveraging so-called conversational websites.
8. Natural Language Understanding
One of the main selling points Facebook used to promote their own Chatbot is that it uses Natural Language Processing technology, which helps it to better understand users’ inquiries. But if you’re one of the people who’ve actually tried interacting with their Chatbot, you know that this is far from reality.
In an effort to get one step, some companies have started working on Natural Language Understanding. Unlike NLO, NLP refers to a number of systems, which work together to handle end-to-end interactions between humans and machines.
Simply put, this technology will allow users and machines to interact more naturally. Therefore, companies are pouring money into the development of technologies like AI negotiation capabilities and reinforced learning to help machines get a better understanding of the human language and user requests.
9. Automated Call Centers with AI technology
With the advancement done in NLO as mentioned above-automated call centers will soon come into existence. Combining NLO, AI voice generation and ‘serverless’ technology will allow automated call centers. Automated call centers will have deep domain knowledge and this will help to have a conversation with the customers. They will be available 24/7 and the major advantage is they will never get sick nor they will take any leaves and will always work.
“Chatbots Will Be Indistinguishable From Humans by 2029” - Ray Kurzweil
10. The Sudden and Powerful Rise in Messaging Apps
As per statista, “Facebook recorded more than 2 billion monthly active users in the first quarter of 2018” On the other hand “Whatsapp acquired 1.3 billion monthly active users”, Messaging apps have surpassed social networks.
As people are using more messaging apps, these messaging apps make it easy for brands to create a long-lasting relationship with the targeted audience and to get the best conversions. Chatbots are entering messaging mainstream for having one-one conversions and to give the best customer service and will be able to solve all queries of customers at any time.
- E-mail campaigns see a maximum of 40% open rates and 2% CTR. Chatbots get over 75% opens and over 50% CTR.
- Statistics show that more than 85% of users prefer to communicate and get information through bots than a website.
11. The virtual assistant takes place of Apps
App usage has been declining these days adversely affecting the economy of the app market. Users are uninstalling the apps which they do not use ad keep only that app which they truly use. Users are using Chatbots to interact with the bank or to read the news.
The best part of the Chatbot is it can combine multiple apps into one. Chatbot automates business tasks and boosts customer experience.
The Future of Chatbots
In 2019, a ton of major companies – including Starbucks, LinkedIn, and British Airways – have announced their support for the development of Chatbots and expressed an interest in implementing them into their operations.
The key players we mentioned before, like Microsoft and Apple have been investing in this technology for years at this point, so we can naturally assume that they will continue to spend more money on the development of Chatbots.
Chatbots for business will definitely evolve in the following years – the design and architecture can possibly improve to a point where interactive bots become the standard for customer service. Still, there are different apps for Chatbots across a variety of sectors.
If you want to stay in touch with the recent developments, you have to follow the industry closely. And what’s the final verdict on small businesses? Will they be able to adopt Chatbots anytime soon?
In the end, the adaptation of a new technology largely depends on these factors:
- Lower costs
- Growing demand
- Improved technology
Just think about this: a decade or so ago, it was almost unimaginable for a small business to have its own custom application. However, as large enterprises started pushing out their apps, low-cost app creation services started popping up.
These days, your average customer expects to have an app as a part of the customer service process.
Therefore, you should keep a close eye on Chatbots in 2018 if you want to get your hands on your own bot in the next couple of years. But be careful – you shouldn’t jump in before the big corporations have it all figured out.