If you need conclusive proof on the (bright) future of conversational AI, a.k.a, chatbots, consider what the World Health Organization (WHO) did to combat COVID-19 'misinformation'—it launched a Whatsapp chatbot to give prompt, reliable, and official information 24x7, on a global scale:
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Clearly, enterprises are beginning to grasp the full potential of conversational AI. In fact, a recent Markets and Markets report claims that the global conversational AI market size is pegged to reach USD 13.9 billion by 2025. Before we jump into the top trends of conversational AI that will dominate 2021, let's understand what it means.
A Deloitte report summarizes it as: "A programmatic and intelligent way of offering a conversational experience to mimic conversations with real people, through digital and telecommunication technologies."
Now that we've understood what it means, let's deep dive into the top-5 trends of conversational AI for 2021.
Top-5 Chatbot Trends To Look Out For In 2021
1. COVID-19 has accelerated the demand for conversational AI.
An IDC report (April 2020) claims that conversational AI has been the 'natural choice' for government agencies, healthcare organizations, and businesses during the pandemic for:
Disseminating health information such as the Memora Health COVID-19 chatbot:
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Empowering businesses and employees to stay agile by offering real-time data:
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Transforming the customer experience by responding to a huge influx of customer calls with relative ease and increased efficiency:
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Enriching the business insights with real-time data analysis and predictions:
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In fact, research indicates that a staggering 80% of insurance companies in the US have fully deployed AI solutions in place, including the use of conversational AI. In the retail sector, around 47% of online shoppers are willing to make purchases by using the services of a virtual agent. Even in the Telecom sector, 40% of telecom executives agree to witnessing substantial benefits from cognitive technologies like conversational AI, with 25% having invested $10 million or more.
This trend will continue to gain traction even in 2021. However, the scope and functionalities of chatbots will need to become more advanced to tackle the increasing issues of customer-service--one of the hardest-hit sectors during COVID-19 as per the Harvard Business Review.
The study further reveals that there has been "A dramatic increase in customer anxiety and frustrations," with customer agents struggling to respond effectively. This is where conversational AI can reduce customer stress, optimize the customer experience, and take off some of the workloads of your already-overwhelmed CX team.
2. Conversational AI vendors will need to step up their game.
The era of one-dimensional, simplistic bots is over. The ability to address FAQ-type questions is no longer a coveted demand for conversational bots. Customers want to interact with chatbots that exude a certain personality, can offer quick and accurate solutions to complex queries, can mimic human interactions, and literally read between the lines (as shown below):
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Additionally, bots that can offer personalized support at scale will emerge as the frontrunners for driving an exceptional customer experience:
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3. Self-learning AI will be key in 2021
Owing to COVID-19, pharmaceutical companies are cutting down the typical vaccine development time from more than a decade to a record 12 months. Even in the conversational UI space, the deadline for project deployment is going to be yesterday. In other words, drawn-out pilot projects will take a backseat, and self-learning AI will lead to shorter development cycles, improved business performance, and increased ROI for every investment made from the very beginning.
Long story short, chatbots are beginning to mature and offer more sophisticated functionalities that are empowered by futuristic technologies such as machine learning, voice search, natural language processing, etc.
4. Data will lead the way for conversational AI designs.
According to Gartner, "By 2022, 70% of white-collar workers will interact with conversational platforms on a daily basis." For businesses, this means relying on data-driven insights to enhance the customer experience. From the design perspective, "one-size-fits-all" chatbots will no longer cut it. By extension, they will need to undergo a sea change to accommodate for the increased customer expectations. Key design elements that will come under the spotlight include:
Personality, tone, and avatar: Along with technical prowess, the focus for conversational AI will shift to softer features such as the tone, emotion, and personality of the bot. National Geographic's bot for its television show on Einstein called "Genius" is an interesting case in point:
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Placement on the brand's website: Conversational AI that is strategically placed will boost the conversion rates and improve the customer experience manifold.
Layout, content, and messaging: Vendors will need to focus on creating industry-specific, pre-defined content that has the ability to carry out nuanced conversations with seamless ease. Take a look at the chatbots shown below:
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Low code or no code functionality: Vendors will need to think of ways to develop enterprise-grade conversational AI that's easy-to-use and comprehend, requiring little to no technical expertise.
All in all, conversational AI vendors will need to offer deep analytics tools as well as build best practices and resource guides to empower brands to self-serve and get more bang for their buck.
Undoubtedly, chatbots are driving greater efficiency and collaboration in today's workspace that values instant gratification above all else. According to Forbes, 62% of US customers, belonging to the Millennial and Gen Z demographics, attribute online chat and direct messaging as the leading methods of customer contact. Take a look at the DNB bank, which has managed to automate 51% of its online chat traffic across platforms (think: website, app, phone, etc.) and automated over 10,000 customer inquiries per day via its virtual agent:5. AI will find increased applications in customer service, knowledge management, and user support.
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Furthermore, Gartner's illustration demonstrates how chatbots are allowing organizations to save time and effort through a singular, centralized request:
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Another study by MIT reveals that nearly 90% of businesses reported measurable improvements in the speed of complaint resolution thanks to conversational AI, and over 80% noted enhanced call volume processing.
To wrap up, conversational AI vendors will need to keep customer-centricity at its core while designing and developing the core functionalities.
Closing Thoughts: Direct Messaging CX Is The Future Of Conversational AI
With the global pandemic discouraging in-person customer experience, AI investments continue to rise, with 30% of organizations planning to boost investments , according to a Gartner poll. Clearly, this technology has proven time and again that its flexibility and deliverability is a forced to be reckoned with.
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