Chatbots are creeping slowly into even the most boring of business interactions. They already started to rule over the low stakes mass market, over simplifying your everyday tasks. From ordering food or query your laptop service to even your credit card queries. At 25% CAGR, it’s becoming a platform of its own, amazingly fast. But a technology’s true potential is known with the seriousness of Enterprises because that’s where the real money lies.
What exactly is a Chatbot?
A chatbot is an artificial intelligence (AI) software that can simulate a conversation (or a chat) with a user in natural language through messaging applications, websites, mobile apps or through the telephone.
Projected to $ 3 Billion by 2023 from $ 0.8 Billion in 2017, AI driven conversations are no more just interesting for startups. Alexa, Google now along with chatbots used by Swiggy or Uber are funneling billions. Enterprises are much interested in replacing the expensive human capital for repetitive tasks (or ‘Automation’) of their sales and customer support and interactions. In an industry with $ 1.5 Trillion loss due to delayed and in compassionate responses, they can change the landscape.
Most Promising Expression of Interaction
A chatbot is often described as one of the most advanced and promising expressions of interaction between humans and machines. However, from a technological point of view, a chatbot only represents the natural evolution of a Question Answering system leveraging Natural Language Processing (NLP). Formulating responses to questions in natural language is one of the most typical examples of Natural Language Processing applied in various enterprises’ end-use applications.
Chatbots soon might prove to be Gold for enterprises. The sheer multitude of advantages of chatbots are not just automation. With ever-shrinking attention span of humans, chatbots have already proven to retain attention much better than any other channel. This is going to create a much valuable space for a powerful digital advertising market as good as Instagram also with better customer engagement and product recommendation.
With automation, WeChat (Chinese) bots are already on whole new level with booking several appointments including medical, service and government, flight booking related queries. This gradual rise is reducing the financial burden of Human support, owing to which roughly 30% of financial firms in US have engaged bots in their user experience. Who knows better about financial benefits than financiers?
Chatbots do have scope in every corner where mass conversations exist. There are companies emerging with business processes and business models around chatbots. Daimler is one such giant which has inducted Whatsapp in its internal conversations. Of course, automation of every conversation is not possible, but things can run more efficient and smoother with chatbots. Basic conversations and information exchange could be optimized quite well. Recruitment is one such industry with lot of conversations involved. For instance, Talkpush is one such company reporting 65% efficiency in costs, 10 times faster processing and 35% candidate satisfaction for its clients. A pool of ticketing and support chatbots have reported 57% retention rate, 77% with internal navigation functionalities and 92% faster responses. (compared to humans, which affects retention).
Chatbots in Recruitment:
The human resource industry is on the verge of a long-awaited transformation and chatbots are the latest addition to the already groovy genus of artificial intelligence and machine.
During the recruitment or interview process, a chatbot works by analyzing an applicant’s sentences and identifying common patterns to come up with a decision or response. How a chatbot operates is somewhat like the way recruiters narrow down prospective employees before they get closer to the final stage of hiring.
Just imagine for a moment: A chatbot reaches out to a recruiter and provides a list of 300 applicants that it has recently interviewed. The recruiter can review these applicants. However, the chatbot also offers a specific list of 10 very good candidates that are worth looking into.
These automated candidate-matching capabilities of chatbots can take the burden of scoring and ranking applicants off a recruiter’s shoulders. Now, recruiters can benefit from having more quality time to converse with outstanding candidates that have been pre-selected by chatbots.
The fact that chatbots operate 24/7 and are designed to talk to multiple applicants at once with high accuracy allows companies to enjoy shorter recruitment cycles. This advantage of speed and precision helps businesses avoid wasting time and money on unqualified talent.
How Chatbot works:
The ability to identify the user’s intent and extract data and relevant entities contained in the user’s request is the first condition and the most relevant step at the core of a chatbot. If you are not able to correctly understand the user’s request, you won’t be able to provide the correct answer.
Returning the response: once the user’s intent has been identified, the chatbot must provide the most appropriate response for the user’s request. The answer may be:
- a generic and predefined text
- a text retrieved from a knowledge base that contains different answers
- a contextualized piece of information based on data the user has provided
- data stored in enterprise systems
- the result of an action that the chatbot performed by interacting with one or more backend application
- a disambiguating question that helps the chatbot to correctly understand the user’s request
- Understanding the chatbots and how they are revolutionizing the market, the AI software capable of formulating responses in natural language.
- How chatbots have won the market and able to generate billions of dollar as revenue.
- Example of some established bots capable to handle a lot are wechat(china) can book appointment, resolve queries related to airlines.
- Almost 3% of US financial firms are using bot services.
- Chat for recruitment has been extremely effective
- Talkpush is able to achieved 65% efficiency in cost and 35% spike in overall candidate satisfaction.
- Being operational 24/7 ensures no website visitor is left unattended and all the relevant information is collected.
- In the end few steps to help us understand how exactly do they work.
- It’s capable to identify user intend and extract data and relevant information and in-turn responding back to user.