Technological advancements are taking the business world by a storm. Business owners and marketers have been taking keen interest in artificial intelligence and its diverse applications. According to a report by Tractica, AI software revenue is predicted to grow from $10.1 billion in 2018 to $126 billion by 2025.
In current times, AI chatbots are a gold mine that marketers are keen to tap into. Back in 2018, 58% of B2B companies and 42% of B2C companies used a chatbot on their website.
Fast forward to 2020, these numbers are very much on the rise. However, the question is – does your business need AI chatbots? Let’s skim through a few insights.
The Cost of Introducing Chatbots
Setting up an intelligent chatbot can be costly, but it generally proves to be worthy in the long run. According to Juniper Research, chatbots can help banks save up to $7.3 billion by 2023 with the evolution of customer service automation.
While you need to train human labor, give them monthly remuneration, and offer other perks, chatbots need none of that. Furthermore, they have the ability to converse with multiple customers at once and ease customer experience.
Investment banking company, JP Morgan, recently launched a chatbot, named “COIN.” It managed to analyze complex legal contracts in just a few seconds – something human staff spends 360,000 hours a year doing.
The Pros of Using AI Chatbots
So, how exactly can chatbots revolutionize your business? Let’s take a look.
Chatbots act as guardian angels that your customers can look up to at any time of the day, month, or year. Be it providing information about products, or pushing potential customers down the sales funnel, bots are extremely helpful.
One such example is the bot deployed by ecommerce brand, Fynd, which enables you to navigate through products, updates you about trends, and helps you place your order with ease.
Image via Facebook Messenger
Dmitriy Kachin from Chatfuel said that chatbots see response rates between 35% to 90%.
What makes chatbots so effective is the anonymity they possess. This helps customers ask questions without any hesitation or fear of being judged.
Easy Data Collection
Bots can talk to customers about anything under the sun – their age, interests, needs, feelings, etc. Think of all of the data you could possibly collate through chatbot conversations.
In the screenshot below, a bot is assisting a customer who wants to buy Polo Clothing.
Image via Medium
According to a report by PwC, 59% of executives surveyed claim that the use of AI will help improve big data at their companies.
The Cons of Using AI Chatbots
While many businesses are experimenting with this technology, some are restraining its use.
Some of the reasons could be:
Chatbots Sometimes Fail to Understand Users’ Questions
Conversing with a chatbot can often feel robotic. Moreover, there have been numerous cases where bots simply didn’t understand the user’s question.
Here’s an example:
Image via Chatbots Magazine
Problems also arise in cases where bots aren’t programmed for a particular language, or when they fail to sense emotions as a human can.
According to a report by Statista, just under 51% of adult internet users in the United States said that they dislike chatbots. This is because it keeps them from accessing an actual person.
Chatbots Aren’t Secure Enough
Since chatbots have access to so much data and sensitive customer information, security concerns come to the fore. Mitigating these risks involves a whole lot of research, investment, and effort.
Getting Started with Chatbots – The Platforms You Need
Despite the cons, there is no doubt that chatbots offer a range of benefits. However, digital marketer, Shane Barker, says that this is only true if you do your research and use the right chatbot platforms.
To learn more about the challenges and opportunities associated with using AI-powered chatbots, check out this infographic:
Infographic via ShaneBarker.com