What are Chatbots? & Why is it Important?

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What are Chatbots? & Why is it Important?

As per Forbes, it is estimated that by 2025 the chatbots market will hit $1.25 billion. In an era where an overall experience a company provides, including customer service, is deemed equally as important as its products, the valuable existence of AI chatbots is on the rise. You can sum it up to say that they have become an integral part of customer service automation. 

What are they? Why are they important? In what ways does it help your business yield? These are the frequently asked questions, which is why all answers to these questions are available in this article; just read on. 

What is a Chatbot?

Chatbots are artificial intelligence (AI) software programmed to simulate a conversation in natural language via text and calls with the customers. Moreover, little or no coding is required to integrate a chatbot into a company's services. This tool is not only efficient in making smooth conversations with the users but also helpful for effortless business operations. 

However, to develop a successful chatbot, one has to choose the natural language processing (NLP) engine very carefully. Further, it needs a speech recognition engine as it must respond to the user's voice via a call. There are various kinds of chatbots available like scripted or quick-reply bots, data-centric, keyword recognition-based, hybrid, and voice-enabled ones. 

Why Chatbots are Important?

Majority of the marketers in the industry plan to use chatbots in their business in one way or the other. AI chatbots bring cost saving to the business and help improve operational efficiency, but they also provide convenience for the customers. 

Following are some of the reasons why more and more businesses are adopting the chatbot strategy as time passes. 

  • Cost-Effectiveness:

    Think about it. It is comparatively quicker and cheaper to invest in a chatbot than programming a cross-platform app or hiring more workers.
  • Eliminating Biased Behavior:

    They certainly eliminate the threat of unprofessional and rude human-to-human interaction generally caused by the moods of both the user and the service rep.
  • Eradicating Unnecessary Labor: 

    Since Chatbots are AI technology, they can perform tasks that are meant to be completed regularly and at specific times, allowing the human agents to attend to their more critical responsibilities. 
  • Analyzing Consumer Data: 

    Company products and services can be improved by using the feedback obtained from the chatbots' interactions with the users by using it. Availability: By using chatbots, businesses can provide around-the-clock customer service. 
  • Customer Engagement:

     It's a known fact that social media plays a vital role in enhancing customer engagement. It's a nice game plan to increase this enhancement by integrating them as part of their social media plans. 

Challenges that come with using One:

One of the biggest challenges is its security. To interact with the chatbot, share their personal information, and query with them, they must trust this artificial intelligence. The design should be hack-proof and highly secure to prevent any hackers from obtaining information. 

Another challenge would come in comprehending human languages since not every human interaction is the same. Different cultures and slang make their way into our speech, so the chatbots have to cater to that as well. 

Laiba Omer

Laiba Omer

Knack for writing and reporting on latest updates and news.