Chatbots have become smarter and more intuitive as AI advances. They can now carry on intelligent discussions, automate activities, make judgments, and take actions. Chatbots are software applications that attempt to simulate human dialogues to conduct a conversation with a customer. Since ELIZA, the first chatbot, was created in 1966, chatbots came a long way.

Conversational AI is increasingly gaining traction among companies looking to improve customer happiness and are the future of customer service. Chatbots are useful technologies that help businesses run more efficiently by automating monotonous chores. With nearly 1.4 billion people and businesses currently utilising chatbots on their websites, an AI chatbot is unquestionably a must-have.

Have you ever thought about how these bots work? App layers, APIs, databases, and interactive user interfaces are all included in chatbots. These work together to enable the AI chatbot to recognise and relate to the customer’s questions. Let’s first understand what is the difference between AI and rule-based Chatbots.

AI and Rule-Based Chatbots

Rule-Based Chatbots: These chatbots identify specific keywords in the question and react based on those keywords. These are mostly used to provide answers to frequently asked questions. The answers are known ahead of time and have been written down. Only inquiries already in the database can be answered by these retail chatbots.

AI-Powered Chatbots: These are cutting-edge AI chatbots that answer client concerns by combining the best rule-based and neural network chatbots. ML, AI, and NLP are combined to generate conversational artificial intelligence in these customer care chatbots. It can recall prior talks and comprehend user preferences to provide a better context for each enquiry.

Ways in which Chatbots Beats Business Competition

Customer satisfaction is essential in today’s environment of fierce competition to maintain existing customers and attract new ones. Conversational AI can provide your company with the edge it needs to stay ahead of the competition. Are you curious as to how? Here are a few suggestions on how AI Chatbots for Business beat competitions.

Market Research

It assists you in determining what your clients want, current trends, and what your competitors are doing, among other things. This data can help you plan your business strategy.

Gathering this data, on the other hand, is a time-consuming operation that consumes a significant amount of manpower. Chatbots with artificial intelligence can perform surveys and look up information on the internet at regular intervals. Chatbot customer surveys do not make customers feel as if they are completing a lengthy online form. You might make it feel more like a dialogue instead. Conversational AI chatbots can be used on Facebook Messenger, Twitter, Whatsapp, and Slack, to name a few platforms. Because the majority of your consumers will be spending so much time on these platforms, you may collect information from them without asking them to log in to another site or even open a new window.

Website Feedback

Your website is frequently the first impression a potential customer has of your company. A well-designed website with attractive pictures, plenty of information, and an easy-to-navigate interface shows people that you care about their experience and strive to make it as frictionless as possible.

A slow-loading or difficult-to-navigate website, on the other hand, conveys the opposite message. AI chatbots can assist you in obtaining feedback on your website. It may inquire whether visitors had any trouble discovering what they were seeking or if they had any other concerns with the website.

If you’ve just launched a new design or website, eCommerce chatbots can help you collect data on how your clients are reacting to the new format.

Human-Like Interaction

Smart AI-based chatbots can closely replicate human conversations, and many users are unable to detect the difference. These chatbots learn from previous customer service logs and customer chats. They are continually developing their conversational skills, and many can hold intelligent discussions with consumers that are extremely similar to real-life human talks.

It’s now easier to construct an AI chatbot that can carry on a conversation that’s nearly unnoticeable from a real human, thanks to technologies and platforms like IBM Watson and Google Dialogflow. Both employ natural language processing to grasp the grammar and context of human speech.

While some clients may be wary about receiving assistance from a conversational AI tool, AI chatbots will be imperceptible to them. It calms their nerves while simultaneously guaranteeing that they receive the help they require.

Cost-Effective

One of the most notable benefits of AI chatbots is that they drastically cut the costs of customer assistance and retention. Chatbots can save you nearly 30% on service costs. It does it in a variety of ways. Because chatbots can handle a huge volume of simple consumer questions, customer service representatives may concentrate on more complex issues. It lowers the number of customer service representatives required by a company.

AI chatbots can improve customer satisfaction and reduce attrition by automating numerous procedures and lowering the time it takes to react to a consumer enquiry. Chatbots are also inexpensive to construct, and they provide several cost savings that more than compensate for their expenditures in the long term.

Conclusion

The future of customer support will be conversational AI. Businesses can save 2.5 billion customer care hours by 2023 if they switch to AI chatbots, according to predictions. AI chatbots’ skills are growing every day. It’s also critical to pick the correct AI chatbot to reap all of the above benefits.

If you are looking for an AI-based Chatbot for your business, O-Chat by ONPASSIVE is an ideal tool. O-Chat is an integrated chat tool that improves customer’s satisfaction rate.