How AI chatbots are dominating and reshaping customer services

  • By Megha Mittal
  • Published on 24 May 2018

Elevating the customer experience to new highs, Artificial Intelligence has transformed businesses across all industries. The chatbot system brings the new industrial revolution.

The prediction by Gartner says that by 2020 customers will manage 85% of their relationship with the enterprise without interacting with a human.

The pace companies are switching to bot system, that day is not away when every service delivered today by website or app, will be delivered by bots.

The chatbots are the biggest disruption to customer service. Soon there will be an urge for every business to adopt or build a bot system.

Banking AI chatbots is becoming more popular. People like the reliability and consistency that chatbots brings to a conversation. To stand out from the crowd, every industry needs to provide an excellent customer service and AI bots are helping them.

Every business is focused on customer needs and experience. Using Machine Learning and Natural Processing Language, AI bots are successful in creating a more human-like response that’s in line with the customer queries. They are meant to function more like real conversationalist.

According to a report by Grand View Research, the global chatbot market can reach $1.23 billion by 2025, an annual growth rate of 24.3 percent. Approximately 45 percent of users in the market prefer chatbots as the primary mode of communication for customer service related inquiries.

Why are Chatbots so popular?

Data shows, people prefer chatting than having a call and there are around 2 billion of the users with messaging app. This shows that messaging is becoming more popular for customers and creates a demand for AI chatbots in the customer care industry. There are already more than 10,000 active chatbots which encourage more development of AI chatbots.

Here are the top advantages of using AI bots for customer services:

1. Chatbots work 24*7

Chatbots are replaced with live chats or call, now people don’t have to wait to speak any customer executive. They can chat with bot anytime without any waiting time and complexity. They are available 24*7 as chatbots don’t need rest and they can work at night too without extra pay.

2. Chatbots reduce cost

Chatbots is a one-time investment which results in a reduction of staff requirement. Chatbots reduce the cost of customer service by up to 29%. A report from BI intelligence says that significant saving can be done in a business when chatbots are deployed. For a high volume of customers, increased rate of automated routine interaction can save millions of dollars per year.

3. Chatbots are fast and accurate

Chatbots doesn’t need time to think and answer, they provide quick and relevant answers. This boosts the communication speed and helps customers with a better experience. Reported by Booking.com, that most issues are handled in less than 5 minutes, via their chat agents.

4. Handling capacity

A human can handle only 3-4 customers at a time. Exceeding their capacity can result in errors. AI bots can simultaneously handle many customers. They can handle thousands of customers at any point in time, without any delay in reply.

Chatbots are still at an early stage and need a lot more improvements. Companies are already aware of the chatbot limitation and there are working to improve their intelligence and language. But with the moving trend, it will not take much time for bots to take over customer care services of every industry.