It seems like yesterday when the idea of robots taking over the world was just a movie thing or in our imagination. Today’s reality is that chatbot market has become the most common expression in global business. Its numerous benefits rapidly enticing organizations along with the capabilities of artificial intelligence (AI).
According to research, the chatbot development market size is expected to grow up to $9.4 billion by 2024 at a compound annual growth rate of 29.7%. Looking at these statistics, if you are wondering whether it will be a wise decision to invest in chatbots then read this blog till the end.
In this ever-evolving technological world, all the marketing, sales, and customer service operations can benefit from AI-powered chatbots. How? Let’s dig in.
What are Chatbots?
In simple words, chatbots refer to a computer program designed to simulate conversations with human users, typically on the Internet. They work as an automated virtual assistant who can communicate with internet users via text messages on instant messaging platforms, forums, and onsite live chat apps.
Chatbots made by Android App development Company may have their limitations today, but AI-powered chatbots are evolving. Very soon it will be difficult to distinguish between a chatbot and human responding to the customer’s queries and concerns over the internet. Android Chatbots are very quick at learning how to talk like human beings.
With chatbots, you can automate customer communication, offering the best chat support under limited human resources.
How do chatbots work?
Chatbots use Natural Language Processing (NLP) and advanced machine learning (ML) algorithms to learn the work processes from collected data insights. NLP refers to the computer’s ability to understand and process human speech while responding in a language that the human user can understand.
Using NLP, chatbots can interact with humans like other humans. NLP includes two processes in chatbots, namely:
- Natural Language Understanding (NLU): It allows the bot to comprehend a human while converting text into structured data for the machine to understand.
- Natural Language Generation (NLG): It transforms the structured data into text, making it possible for the human to understand the chatbot conversation.
There are three types of chatbots, namely:
- Rule-based Chatbots:Using this chatbot, you can click on buttons and use predefined options. However, only limited selections can be made, as it slows down the chatbots, impacting the customer’s urge to find a satisfactory answer on time.
- Intellectually Independent Chatbots:These chatbots use machine learning to learn from users’ inputs and requests. Also, you can train bots to understand particular keywords and phrases that will trigger the replies. These chatbots can train themselves to resolve more and more queries and serve the customers in an enhanced way.
- AI-powered Chatbots: It is a combination of the two kinds of bots that use ML, AI, and NLP. AI-powered bots help understand and remember the context of the conversation and their user’s preferences. You can know the fundamentals of how chatbots work and leverage them to upscale your business prospects.