Ever since the discovery of the first MIT-created chatbot software – Eliza proved that computers were capable of interacting with humans, and the artificial intelligence space has advanced by leaps and bounds. The expansion of algorithmic tools and funds not only boosted AI research but also enabled computers to cultivate deep learning techniques for intelligent communication through data.
Conversational AI also gave birth to systems that can perform the critical human-thinking process that embarked on the unwrapping of more trends like voice recognition along with Apple’s Siri, Google Home, and Amazon’s Alexa. Moreover, conversational AI has also integrated into our daily lives with digital banking, online services, and e-commerce.
In addition, the global conversational AI market is predicted to surpass $13,291.3 million and grow at a stable 21.4% CAGR during the 2021-2028 forecast period. Considering this immense growth, it’s evident that conversational AI will bring in further advancements and trends that one should watch out for this year.
Now let’s explore the meaning of conversational AI, some benefits of this technology, and the potential challenges it might face.
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What is Conversational AI and How is it Beneficial?
Conversational AI is a set of technologies like virtual assistants and chatbots that help speech-enabled and automated messaging applications in providing human-like interactions between computers and humans. Conversational AI uses machine learning and natural language processing for mimicking human interactions, recognizing text inputs and speech, and translating sentences into various languages.
This technology is used by several businesses for routine tasks so that they can focus more on core operations and run more efficiently. Here are a few benefits of using conversational AI:
- Increased Customer Engagement
The growing utilization of mobile devices in our daily lives can help businesses in providing real-time information about their products by adopting conversational AI tools. Compared to human workforces, these tools can be easily accessed by customers and eliminate the need for long call center wait times. Since conversational AI tools prove to be immediate support, businesses can enhance their customer experience and overall company sales. Moreover, personalization features like chatbots also provide recommendations to customers which is another strategic move to cross-sell those products that are generally ignored by customers initially.
- Cost-efficiency
Staffing a customer support department is a costly task and becomes an ineffective solution in case of providing customer assistance beyond regular office hours. Incorporating conversational AI tools like chatbots and virtual assistants not only reduces business costs around training and salaries but also provides 24/7 availability to potential clients.
- Scalability
Conversational AI is a scalable option for businesses since adding more infrastructure to support conversational AI is cost-efficient and faster than hiring new employees. This is more helpful when products expand their horizon to new geographical markets or during unexpected spikes in demand, like during holiday seasons.
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Possible Challenges of Conversational AI
Despite technological advancements, conversational AI is still in its budding stages and many businesses are yet to adopt it. Here are a few possible challenges for conversational AI:
- Privacy Concerns
Since conversational AI is highly dependent on the collected data to answer queries, it is equally vulnerable to security and privacy breaches. Including conversational AI applications with high-security standards can help build trust among customers and increase chatbot utilization.
- Client Apprehension
Customers get very apprehensive about sharing their personal information, especially after realizing that they are communicating with a machine. Since not every user will be an active and early adopter, businesses should educate their clientele about the safety and benefits of such technologies for improved customer experiences.
- Changing Communication
Languages, accents, dialects, slang, and even sarcasm change constantly that greatly influence the communication between machines and humans. Conversational AI applications need to keep up with the ‘new normal’ communication terms for a user-friendly and advanced customer experience.
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Final Word
Despite the possible challenges, conversational AI technology is a lucrative solution for businesses since it has problem-solving skills, is cost-efficient, reduces time, and carries out repetitive tasks with improved customer experience. Incorporating conversational AI applications in enterprises also helps to focus on the core operations and free up from routine tasks that chatbots and virtual assistants can perform better.
About Research Dive
Research Dive is a market research firm based in Pune, India. Maintaining the integrity and authenticity of the services, the firm provides the services that are solely based on its exclusive data model, compelled by the 360-degree research methodology, which guarantees comprehensive and accurate analysis. With an unprecedented access to several paid data resources, team of expert researchers, and strict work ethic, the firm offers insights that are extremely precise and reliable. Scrutinizing relevant news releases, government publications, decades of trade data, and technical & white papers, Research dive deliver the required services to its clients well within the required timeframe. Its expertise is focused on examining niche markets, targeting its major driving factors, and spotting threatening hindrances. Complementarily, it also has a seamless collaboration with the major industry aficionado that further offers its research an edge.
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