Chatbot

A chatbot is a software application companies use to converse with users online. Chatbots utilize artificial intelligence (AI) to respond to any given prompt. Chatbots can aid with customer service and direct a customer toward the appropriate support worker after narrowing down the topic of their concern/inquiry. This allows for a faster response and streamlines customers to get them in the proper queue for the appropriate support. Chatbot provides businesses with many benefits and is a great implementation given society's fast technological pace regarding using AI to promote productivity.

Chatbots are a tool for businesses and a program that allows customers more access to information through their websites. There are many advantages businesses acquire when implementing a chatbot within their business, which include the following:

• Availability: Chatbots can provide assistance 24/7, allowing customers to receive assistance outside regular business hours.
• Instant Response: Chatbots quickly respond to the customer’s inquiries, which enhances customer satisfaction by having a reduced wait time between responses.
• Cost-Effective: Chatbots reduce the need for a large customer service team; this can save money for businesses and allow them to focus on a minor team where the chatbot can direct the customer to the appropriate help.
• Consistency: With the use of AI, chatbots provide consistent responses to questions which ensure that all customers receive the same quality of service.
• Improved User Engagement: Chatbots can manage multiple conversations at a given time, improvising efficiency compared to human support help who can only handle one customer at a time. Chatbots provide an interactive experience for users navigating the website while promoting engagement on websites and apps.

Types of Chatbots

There are many uses and benefits chatbots can provide for business. Chatbots can be used in customer service, entertainment, and information retrieval. The two main types of chatbots are:

• Rule-based Chatbots: These are programmed to follow a defined set of rules and respond to specific keywords. These chatbots are more simple and can only handle straightforward questions.
• AI-powered Chatbots: These chatbots use natural language processing (NLP) and AI to understand context and provide more dynamic responses. They can also learn from previous interactions and improve over time.

Rising in Popularity

Chatbots are commonly found on websites and messaging apps and are used as virtual assistants. Chatbots are rising in popularity due to advancements in AI and NLP, as chatbots are more sophisticated than ever and can provide real-time responses to dynamic interactions. Their rise in popularity is due to further integration with chatbots within websites and messaging platforms like Instagram, making chatbots more accessible and convenient for users. It is important to note that the COVID-19 pandemic has been a huge turning point for adopting AI technologies, and businesses are implementing more ways to provide remote support. As AI and technology continue to evolve and advance, the popularity and usage of chatbots are only expected to grow across various industries.

Examples of Chatbots

Chatbots are customizable and can come in varying styles. Examples of virtual assistant chatbots include Siri and Alexa. These are voice assistants with personas that can interact and engage with users. Other examples include websites like Sephora and Domino's, where chatbots are used to enhance customer experience by assisting with promotions and product information. Chatbots are able to inform the customer about available products and assistance with checking out. Customers are able to insert any question they have and the chatbot will provide a curated response to assist with any queries.

Advantages of Chatbot

• Chatbot is able to get through more customers than a human as their response time is significantly quicker and they can handle multiple customers at once.
• Chatbot can sift through many users, disregarding any spammers or unserious customers, allowing human support workers not to have to spend their time with spammers.
• Usually with chatbots there are options for the customer to narrow down their issues/questions, this allows the chatbot to quickly organize their topic of discussion and direct them to someone qualified to help.
• Chatbots are cost-efficient as businesses can handle increased customer interaction without increasing staffing.
• Due to a chatbot's 24/7 availability, businesses can reach users worldwide in different time zones.
• Chatbots are more consistent than humans, minimizing the risk of human error, especially with repetitive tasks. Chatbots provide the same consistent answers to FAQs, which ensures that customers receive consistent answers and the same level of information.

Uses and Capabilities

Chatbots provide many services for both the customer and the business as they have a wide range of uses and capabilities, including:

Customer Service –Chatbots assist customers at any time, meaning customers can handle their issues regardless of the time of day. Chatbot reduces the workload for human support agents as they can answer frequently asked questions. This allows human support agents to spend time handling issues beyond the chatbot's capabilities. Chatbots may assist customers with tracking their orders and provide shipping updates.

Sales and Marketing –Chatbots can offer personalized product recommendations based on the user’s preferences and inform customers about different promotions and special offers that cater to their interests. Chatbots engage potential customers by gathering and delivering information to increase customer satisfaction.

E-Commerce –Chatbots are used to assist customers when placing orders or checking out. Chatbots are also able to provide additional information about products such as reviews and comparisons. Reminders can be sent to customers to have abandoned their shopping carts online.

Education –Chatbots can be a source of information where they offer custom advice or guidance to different individuals. Chatbots are a great way for new users to learn new information.