Over the past few years, major advancements in artificial intelligence (AI) have led to some incredible technology. And one of the most exciting developments has been chatbots. These AI-powered applications allow customers to interact with businesses through natural language conversations on messaging platforms like Facebook Messenger, Skype, Slack, and more.

Here’s what you need to know about this huge trend and why it’s the future of customer service.

What is artificial intelligence?

It is a type of intelligence demonstrated by machines, rather than humans. The best-known example is computer software that can defeat a chess champion or beat grandmasters at Jeopardy! But things like Siri, Google Now, Alexa, Cortana, IBM Watson, and Microsoft’s new HoloLens could all be considered manifestations of artificial intelligence. And these machines are getting smarter all the time.  

In short: Artificial intelligence refers to intelligent machines that mimic human performance. As opposed to robots, which are essentially physical machines that perform specific tasks without any thinking required.

What will chatbots do for businesses?

Automation tools—and especially chatbots—will save companies a lot of money. If a company has an average volume of 1,000 customer service inquiries per month, employing one full-time representative would cost around $50,000 per year.

That number drops significantly if you use automation tools like chatbots instead. This isn’t just about saving money; it also makes it easier for customers to get their questions answered more quickly and efficiently.

How will chatbots change our lives?

Chatbots have been making headlines recently because they represent a massive shift in how we interact with technology. We’re moving from having to interface with technology through touchscreens and keyboards (which have become second nature) to interacting with technology through natural language conversations. Instead of memorizing commands, we simply ask what we want directly.

How does that impact our daily lives? Well, imagine being able to ask your virtual assistant (like Amazon Echo’s Alexa) where your keys are. Or asking your fridge when you need milk. Or asking your thermostat when you should leave for work so as not to be late. These interactions may seem trivial now, but they represent a massive shift in how we relate to computers and other forms of technology.

Will there be privacy concerns?

There already are. Some people worry that chatbots will take over jobs and replace workers in call centers. Others fear that users won’t know who is on the other end of a conversation, even though many chatbot platforms require people to identify themselves before starting a conversation.

Chatbot advocates argue that these concerns aren’t unique to chatbots—they apply equally well to every form of communication technology, including email and text messaging. They point out that chatbots, like all automated systems, are less likely to make mistakes than humans. They also say that every new technology brings with it a period of adjustment and anxiety. And, eventually, familiarity and acceptance.   

How to interact with Chatbots?   

The next step is implementing your plan, but that’s a topic for another day. The best way to start off is by learning how to interact with chatbots. We’ve already talked about available platforms (Facebook Messenger, Slack, etc.) and now we’ll delve into how to handle interacting with bots on those platforms. There are several approaches you can take:

1) Test out every platform you can find and build experience;

2) Create mock-ups or wireframes of all possible conversation paths;

3) Do keyword research and try searching specific topics.

What are chatbots?

Let’s begin by defining what exactly a chatbot is. A chatbot is essentially an automated program designed to simulate human interaction via conversational commands. It can perform simple tasks, like giving you today’s weather report or helping you schedule a meeting with your boss, or it can handle more complex tasks, like recommending restaurants or answering questions about your bank account balance.

Benefit from Artificial Intelligence!

The best part? They don’t take breaks, they don’t get sick, and they never complain about having too much work to do. In short: They make customer service easier for everyone involved—customers and businesses alike.

How will chatbots change business?

Businesses that use chatbots have already seen positive results. For example, fast-food chain Wendy’s has implemented a virtual drive-thru window on Facebook Messenger that lets customers order food without leaving their homes. And as mentioned above, brands including Sephora and Comcast have begun using chatbots to answer basic customer questions. But these examples barely scratch the surface of what’s possible when it comes to bots. Companies could soon be using them for everything from ordering products to making purchases, scheduling appointments and even booking travel arrangements.

This isn’t just great news for companies; it also means that consumers will benefit from higher quality interactions with companies, which should lead to better overall experiences.

How does a chatbot work?

When you interact with a bot on any platform (Facebook Messenger, Slack, etc.), there are two main components at play:

1) Natural language processing (NLP): This refers to how well your bot understands natural language and communicates back accordingly. For example, if you ask What’s my balance? it should be able to respond correctly by telling you what’s in your bank account.

2) Artificial intelligence (AI): As we mentioned above, bots can be programmed to handle complex tasks that might otherwise require human interaction. A good example is IBM Watson—an artificial intelligence program designed to process natural language commands and answer questions like those found on Jeopardy! or other trivia games. In order to achieve these goals, Watson uses machine learning algorithms to learn from its mistakes and improve over time.

The same goes for chatbots; as they gain more experience interacting with humans, they become better equipped to do so in real-time conversations.

How will chatbots change customer service?

While companies are still figuring out exactly how best to use chatbots, one thing is clear: They could revolutionize customer service as we know it today.

The biggest benefit?  

They’re accessible 24/7, 365 days a year—which means customers can get help at any time without having to wait on hold or deal with long wait times. In fact, according to a study by Maritz Research, 78% of consumers say they would be more likely to contact a company via social media if they knew they could receive an immediate response from a bot instead of waiting for a human agent. What’s more, nearly half (45%) of those surveyed said they believe bots provide better overall experiences than humans do.

And let’s not forget about cost-savings; according to industry analysts Gartner, By 2022, 85% of customer interactions will be managed without a human involved. So what does all of this mean for businesses? If you want to stay competitive, you need to start thinking about incorporating chatbots into your customer service strategy sooner rather than later. As technology continues to advance, there’s no telling where it might take us next—but whatever happens, chances are good that chatbots will play a big role in making our lives easier along the way.

Step into the future now!

Artificial intelligence is a lucrative field that boasts far more jobs than qualified professionals, meaning now is a great time to get involved. And, who knows, you might just be part of an AI wave sweeping through businesses all over today’s digital world.

If you are looking for a change of pace or some fresh professional inspiration, it can be hard to tell where technology will take us next. In recent years we have seen virtual reality, augmented reality and chatbots emerge as technologies ready for mass adoption; what will come next?

A host of experts think artificial intelligence (AI) could revolutionize everything from online customer service to mobile payments—and it may not be long before these innovations hit our pockets.