AI Chatbot – What is it? Opportunities and Challenges You Need to Know

AI Chatbot – What is it? Opportunities and Challenges You Need to Know

An AI chatbot is the product of superior technology and human touch. According to a study, chatbots are set to drive $112 billion in retail sales by 2023. This boom has been attributed to not only the improvement in the customer support vertical but also the overall experience that chatbots provide.

So, what exactly is an AI-powered chatbot?

An AI chatbot is a program used by businesses to converse with its customers intelligently.

What’s the big deal, you ask?

A chatbot alone is a bot that answers FAQs. However, a chatbot powered by AI is no ordinary program. It can learn complex customer requests and tailor relevant responses. In addition to this, it keeps a conversation engaging, lively, and informative – without the need for human intervention.

Now that you know what’s an AI chatbot, read on to learn and understand its benefits and challenges.

Benefits of AI Chatbots

Do we stand to benefit from Chatbots? Most definitely. When implemented well, chatbots can prove to be a strong reason for ROI. Here are the benefits:

1. Convenient for Users and Marketing Professionals

AI chatbots completely change the way a user experiences a brand online. If they land on your website or app because of some reason that piqued their interest, the chatbot helps you take them to the next stage of the sales funnel.

It’s a win-win situation. The users get what they want quickly, and business is completed in a flash, hence driving sales and revenue. An AI chatbot also works round-the-clock without any human intervention and makes life easier for marketers.

2. Acts as a Useful Data Source

A huge bonus for brands employing AI chatbots is that they can use them to collect data. Brands can get a lot of valuable information about their target audience based on their queries. Additionally, chatbots can collect data like email addresses and names when someone wishes to chat with them.

This data can come in very handy in driving your business growth. You can use it to improve your products and services as well.

3. Extremely Cost-Effective and Time Efficient

Since AI chatbots require no human intervention, you can reduce the size of your customer service staff. You can divert the complex and one-of-a-kind queries to your customer service agents.

In addition to saving you money, AI chatbots can save time too. This is because you can engage with multiple customers at once and provide them with instant responses.

But chatbots have their set of disadvantages as well. Let’s take a look at them.

Limitations of AI Chatbots

While AI chatbots can perform multiple tasks like that of a human, there are a few challenges associated with this technology. Let’s dig in.

1. Data Security is a Concern

The security of customer data is of paramount importance. With astronomical data pouring in through these chatbots, there is a need for the secure transmission and storage of this data on the internet. Any data breach may leave you red-faced and might harm your brand reputation.

2. Lack of Emotional Quotient

While AI chatbots can talk like humans, they lack the emotional quotient. It can be challenging for them to figure out the mood of the customer and respond based on that. You need to program them to understand human emotions and train them to give appropriate responses. This can help in improving the quality of interaction that people can have with them.

Final Thoughts

AI chatbots can be great assets for your customer service operations. If you haven’t started leveraging this technology yet, it’s high time you begin doing so. Head to my blog to discover the best AI-powered chatbots that you can use for your brand.

AI Chatbots Infographic

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