What do Mattel, Apple, and Facebook have in common? They’re all exploring the latest AI trend, transforming weak AI chatbots into cutting-edge, conversation-based interfaces. Mattel has Hello, Barbie!; Apple has Siri; and Facebook, which has Facebook M (similar to Siri) is also turning its Messenger app into a complete platform that supports chatbots created by partnering companies.
Chatbots aren’t new technology. One of the earliest chatbots, ELIZA, was published in 1966 and used the same pattern-matching foundation that many modern chatbots currently rely on to deliver human-like responses. What’s new, however, is the recent uptick in chatbot development across messenger-based platforms. As more companies invest in strong AI systems, such as neural nets, deep learning, and real-world human trainers, chatbots represent a real digital disruption that could revolutionize major industries, individual departments, and consumer interactions.
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On the surface, chatbots may not seem very progressive. In fact, they rarely pass as human conversationalists. However, the technology is moving faster underneath the surface and behind the curtains. Simply having chatbots interacting in the marketplace is an incredible opportunity for companies to learn and grow in real-world environments.
While Facebook expands its chatbot services, Google is also reportedly working on a chatbot messaging service that can offer assistant-like support via a messaging platform. Other major players in the chatbot arena include Kik, WeChat, and Microsoft. Microsoft CEO Satya Nadella referred to the development of chatbots as a way to create “conversation as a platform.”
The technology could permanently change the way humans interact with the digital world. Instead of opening a search engine, clicking on a weather site, and looking up your location, a well-designed chatbot would give you an instantaneous, geographically accurate update from a simple verbal or textual query. Imagine if looking up documents for a legal case, scheduling your team’s monthly meetings, or providing accurate feedback to a customer was that easy.
The ultimate goal of chatbots is to replace the most common interfaces we use on computers and in connected devices. While nobody can predict exactly how or when chatbots will transform communications, here are some of the potential business benefits:
Fully scalable customer service. Developed chatbots may completely disrupt the customer service department. Instead of interacting directly with consumers, customer service representatives may work to optimize the chatbot experience and provide human interaction only when necessary. This could be particularly useful for smaller companies with limited human capital, which could use chatbots to engage with more consumers without allocating additional personnel.
Improved customer intelligence. In addition to reaching more customers, chatbots can log and store key data points, which companies can then use to personalize the purchasing experience and optimize product development.
More competitive small businesses. Cloud computing and remote services give small businesses access to the same competitive resources large companies have used for years, such as video conferencing and big data analytics. Likewise, chatbots that undertake routine tasks become “extra employees,” thus freeing up SMB personnel to work on strategic business functions, which can contribute to accelerated growth rates.
A different navigational experience. Instead of finding information via a search tab or drop down menu, chatbots may open the door for conversation-based interfaces. And, companies can use the resulting feedback to optimize websites more quickly. The effect may be similar to the shift away from “like” buttons to more granular emoji-based reactions. We’re entering the age of context—a simple thumbs-up won’t cut it when we expect digital interaction to be more human and less text-based.
More personalized marketing and sales. Conversation-based engagement creates a feeling of connectivity and can improve customer relationships with a brand. Marketing and sales departments can capitalize not only on the data collected via chatbots but from the ability to create highly effective campaigns that improve customer loyalty and edge out competition.
Imagine a world where interacting with a business is similar to how you connect with a friend or family member online. Ultimately, chatbot development will pave the way for other AI developments. They could optimize the autonomous vehicle experience, change the way individuals apply for jobs, and become part of a new, more connected and human-like digital ecosystem.
As the Microsoft chatbot Twitter debacle proves (Tay was corrupted within 24 hours of social interactions), we’re miles away from using chatbots to seamlessly connect with the world around us. Current chatbots are still vulnerable to internet trolls, limited prompts, and inconsistent feedback. Although the current iterations are far from passable, technology is progressing fast enough for businesses and individuals to take notice. Before too long, you may find yourself discussing the merits of a local weather report with a chatbot as if it were an old friend.
