The Significance of Chatbots and How it Works

Have you seen a chat box popping up on almost every website which is eager to help you? Yes, it’s kind of live chat facility, chatbot which gives the human a feeling of interacting with another human. A computer would be called intelligent only if it did manage to convince humans that the computer itself is human. This is what the power of artificial intelligence is; it connects machines with customers in the most human way.

Chatbots have really become a significant part of businesses. According to a recent report, around 80% of businesses are expected to incorporate chatbots in their virtual space by the year 2020. It’s a key to drive engagement and sales. No matter if you are technically sound or not, as a user, help will be required, anytime. Quick response or instant solution to queries is always appreciated. Chatbot acts as a premium interaction channel and acts a salesperson who answers to all your question related to particular service or purchase.

The significance of chatbots:

Chatbots is a short form for chat robots which is said to be the future of customer service. The predesigned message box gives the customer a feeling of interacting with the human on the other end. The artificial intelligence speaks in the natural language of humans and not in code language which is why it is becoming popular. Communication is predominant in every kind of business, chatbots open big opportunities for any medium and large size businesses by enhancing customer support. Humans cannot offer customer support 24/7 but artificial intelligence can. Hence user issues can be resolved anytime with the help of chatbot interaction which in turn results in higher user engagement. Implementing chatbot requires minimal cost but the returns are maximum.

Personal interaction and loyal assistance together are making the customer journey more efficient. Chatbots are also an advantage for businesses in areas of cost and human resource.

How do chatbots function?

How does the customer get the right response and that too from a machine? Have you ever wondered? Well, this is all the magic of chatbot functionality. The process would look simple but behind the scenes, it is quite complex. Artificial intelligence, language handling, machine languages and set of guidelines are utilized all together for the smooth functioning of chatbots. First the chatbot analyses the user request, then extracts relevant entities to return a valid response. It is not at all that easy.  

The answer is generally:

  • A predefined text
  • A message retrieved from the database that contains a variety of answers
  • Information or contextualized reply based on user input
  • Or a question from a chatbot that shows it’s uncertainty to understand user’s request (further question may make the user request more understandable for chatbot)

Strategies, content, evaluations, modified reactions, chat logs are all blended together for an intended response at right time. This innovative technology has the ability to answer many questions at a time.

Chatbots are smart assistants but security can be an issue. There are security vulnerabilities, as it is an information gathering software, it is on the target of hackers, hence powerful network security is crucial.

Chatbots have made considerable progress in the past year. The present chatbots are smarter, increasingly responsive and more useful and we are probably going to see much a greater amount of them in the coming years. Discussing the benefits and challenges of chatbots, and how chatbots are efficient in Fintech, the 2nd Edition MarketsandMarkets AI & Fintech will take place on 16th – 17th May at San Francisco, CA.

Over the 2-days, speakers will share their use-cases and experiences. Witness the possible peer-to-peer business models and adoption of Fintech with applications of the trending technologies.

Want to know more about the conference? Click here to view the conference agenda and complete details.

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