Conversational UI is more than a buzzword.
The word ‘chatbot’ is no longer in fashion among companies and the term is now better known as ‘Conversational UI’ in the industry. You can simply call it an interface that takes the form of a text message thread. Voice assistants, chatbots, live chats and so much more fall into this category. In accordance with varied reports, AI chatbot solutions will save more than $8 billion annually for the businesses by 2023 while generating $112 billion in retail sales.
Let’s see how the potential of conversational AI will advance to help brands drive engagement, deliver delightful customer experiences, unlock growth and improve conversions.
With the immense growth of the conversational AI industry in the last decade, the chatbot industry is expected to reach $454.8 million by 2027, pandemic being the growth accelerator for the digital transformation taking the center stage.
BotSociety defines conversational UI as a technology that you can physically hear or see for making decisions while engaging with a conversational chatbot. Any software that talks to you by audio or visual means falls under conversational user interface. For example – Siri by Apple, Erica by Bank of America, Google Assistant and so on. In 2023, voice assistants and chatbots are the most used type of conversational UIs that transform businesses.
With advancements in technologies like Machine Learning and Natural Language Understanding, AI chatbots are adding value to businesses by building a solid sales pipeline, enabling commerce, achieving marketing objectives, driving engagement, brand loyalty, delivering delightful customer experiences and more.
How the future of conversational AI is expanding its capabilities with tailor-made solutions to revolutionise how companies operate and shape businesses.
The global emotional AI market is expected to grow at a CAGR of 11.3% to reach $37.1 billion by 2026. Eye-tracking technology, advanced facial emotion recognition, analysing video interactions in real-time, all of these are the focal points of projecting emotions while interacting with an Al chatbot solutions. To cover the area of understanding human emotions, there’s sentiment analysis via AI chatbots to understand the tonality, mood, sentiments of the customers to deliver tailored communication. The AI chatbot solutions industry hopes to achieve this level of emotional intelligence soon.
Digital voice assistants are expected to reach 8.4 billion units by 2024. Data by Loup Ventures showcases that Google Assistant outranks all its voice assistant competitors like Siri and Cortana with the highest accuracy record of 98% in navigation. Everyday use cases for voice assistants include sending a text query, searching for answers to a query, shopping and more. Customers are using voice assistants as tools to aid them in their household chores smartly and efficiently. Companies are all set to improve the performance of voice assistants so that customers might use them for more critical operations.
According to Gartner, 52% of the telecommunication companies use chatbots to improve their overall productivity. Furthermore, there’s substantial acceleration in the adoption of AI-powered applications such as providing customised product recommendations via target advertising and consumer behaviour forecasting. This being said, AI chatbot solutions continue to prove their merit in improvising customers navigate on brand’s digital avenue, which is a time saver for them. With AI chatbots, search has become relevant for the customers with users being more engaged in the conversations and their queries being answered.
SproutSocial, a social media management tool states that Instagram offers the maximum ROI for selling products as 29% of marketers plan to invest more on Instagram than any other social media platform. As many as 41% of Gen Z and Millennials make impulse purchase decisions every 2-3 weeks on Instagram, TikTok and Snapchat. According to an article by Meta, 59% of the global shoppers directly connect with brands via messaging services for orders and purchases. Sales through social platforms are expected to value around $605 billion by 2027.
To be inclined towards delightful customer solutions, brands can’t work without technical effort from their end. Brands look forward to the most conversational AI platforms that offer pre-designed modules, drag-and-drop experiences without the challenges of building a bot from scratch. This trend continues to improve while reducing intricacies involved in building a bot solution. For instance – Even Google has utilised it’s AI tool called Dialogflow to initiate Bot-in-a-box business messages, no-code platform, allowing brands to deploy chatbots on Google Maps, Google Search and other business assets.
In accordance with Gartner, there’s greater acceptance of AI technology seen in specific sectors like healthcare in the coming time. 'Al governance is crucial, especially for clinical applications of technology,’ says Laura Craft, VP Anaylst at Gartner. Moreover, according to an Adobe Study, 39% of large companies have planned to invest in AI services. This suggests that 4 in 10 companies are all set to utilise AI any time sooner.
Do you know that Meta is spending heavily on building robust conversational AI techniques to humanise each element for natural flow of conversations in diverse situations? Conversational AI is the reason behind Metaverse’s success with brands flocking towards the Metaverse wave where 71% of the global executives say that it is positively impacting the organisations.
AI chatbots have successfully achieved results in terms of lead generation, customer support, commerce and have proved their worth in internal use cases within the companies for varied functions like IT, HR, product training and so on.
According to a market research store, Juniper Research, the volume of interactions handled by conversational AI increased to 250% in multiple industries globally since the pandemic. By 2030, the global conversational AI is expected to reach $32.62 billion with over 70% of chatbot conversations within retail conversational AI systems.
Gartner claims that conversational AI deployments within contact centers will reduce agent labor cost by $80billion by 2026 while chatbots will save retailers $439 million.