The future of chatbots is transforming the way businesses interact with their customers. From handling customer inquiries and offering real-time support to providing personalized product recommendations, chatbots are becoming increasingly important for all types of businesses in the digital age.
With continued advancements in AI and machine learning technology, it’s clear that chatbot usage is only going to continue to increase across industries.
At Onix, we have more than 20 years of experience investigating and developing chatbot technology for our clients, so we have decided to share our view on top trends.
In this blog post, we'll look at 10 key trends surrounding chatbots and offer insights into the size of this rapidly growing market segment from a global perspective.
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The chatbot industry is projected to reach a market size of $3.62 billion by 2030, with an annual growth rate of 23.9%. This speaks to the increasing popularity of chatbots and their potential as powerful customer service tools. This trend has been primarily driven by the advancements in artificial intelligence (AI) and machine learning (ML) technologies, which have allowed for more sophisticated chatbot solutions. As a result, businesses increasingly leverage AI-driven chatbots as part of their customer service operations.
Currently, the industry that is one of the leaders in the adoption of chatbots is healthcare, with 43% of companies using them for customer service. Additionally, 33% of businesses in the manufacturing industry and 28% of companies in the retail sector are leveraging chatbots as a tool for customer support. Furthermore, research from Oracle also found that 29% of banking and finance-related organizations were deploying artificial intelligence-powered chatbots to improve user experience. For other industries such as media, e-commerce, hospitality, and travel, there wasbetween a 13-15% usage rate.
As we can see, more and more companies are adopting chatbot technology and making use of it. Let’s now dive deeper into the chatbot industry trends we might expect in this sphere for 2023 and beyond.
In the future, chatbots will serve as versatile assistants across various industries, facilitating seamless interactions between businesses and customers through personalized, efficient, and AI-driven conversations. They'll evolve to offer advanced problem-solving capabilities, adaptability, and emotional intelligence, becoming indispensable tools for enhancing customer experiences and streamlining operations.
With a variety of ‘conversational marketing’ techniques being used, such as the voice-assisted Amazon Alexa and chatbots in Messenger, it will be interesting to see how this technology will develop. Let’s look at what is the future of chatbots that may likely take the stage soon and how chatbots will be used.
Better use of Machine Learning
Modern chatbots are evolving into what scientists initially wanted them to be: they actually learn over time. This learning occurs mainly through human interaction, but that’s not the only option. Chatbots also collect so-called training data and can be connected to open-source data (like WikiQA Corpus or Ubuntu Dialogue Corpus) to create a fuller picture. Chatbots use this during a live chat as a reference. The more data that comes in, the more capable chatbots can process and understand. They work smoothly and efficiently, their reactions become increasingly personalized, and operational time becomes shorter. It is quite likely that AI chatbots will become fully capable of assisting with the user’s needs at nearly every stage of the customer experience. This means much less generic and useless information is communicated.
As technology advances, it has become increasingly commonplace to see chatbot utilization not just in customer service industries but in various businesses. By 2023, market analysts expect chatbots to be integral to every industry as consumers continue to expect 24/7 customer service. But instead of simple bots offering pre-programmed answers or scripts, these modern chatbots are expected to use natural language processing and hold conversations that closely mimic human interaction. With the expected growth of AI-driven digital assistants, rise in consumer expectations and need for automation efficiency, businesses' average conversational AI investment is set to reach $18.4 billion by 2026. It's clear that this trend is only likely to grow and develop in the coming years and, with continued advancements in technology, could offer incredible potential for businesses and consumers alike.
Advantageous virtual assistance
Chatbots are revolutionizing how businesses assist their customers. They offer a convenient and user-friendly way of interacting with customers and provide businesses with the potential to automate specific customer service tasks and integrate multiple applications for a more efficient workflow.
By combining different functions into one system, chatbots can give businesses a great advantage in productivity, cost-effectiveness, and speed. With these benefits being made easily accessible, it is no wonder that many companies are now investing in adopting virtual assistant technology to take their customer service to the next level.
AI-powered chatbots are becoming more intelligent
AI-powered chatbots are becoming more and more intelligent these days as technology continues to advance. To bridge the gap between humans and computers, chatbots need to interact naturally with people through conversation seemingly - something made possible by artificial intelligence. Through natural language processing, AI makes it easier for machines to understand what is being said and respond accordingly.
What was once a technology limited to simple dialogue now allows greater depth in conversations between bots and their users. While some may worry that AI-powered chatbots are erasing the need for human customer service agents, advancements in this technology should be celebrated as providing more efficient communication capabilities than ever before.
Chatbots are facilitating business processes
AI chatbots are helping businesses automate processes quickly and efficiently. Modern chatbots are powered by advanced natural language processing techniques, which allow them to understand human conversations, interpret user intent and respond effectively. For example, companies often require customer support agents to process orders, answer queries, resolve issues, and so on. AI-powered bots save businesses time and money as they can provide instant replies without needing manual labor. Moreover, modern chatbots can even act as personal assistant bots that help with daily tasks such as booking appointments or managing orders. The demand for business-oriented AI chatbots is proliferating, and this trend will keep increasing over time.
The growth of voice-based apps
The use of digital voice assistants is steadily on the rise and set to triple by 2023, with estimates showing that smart home devices are a major driver of this surge in growth. Smart TVs will have the most significant expansion, predicted to grow by over 100% every year for the next five years. This means that more households than ever will be able to benefit from the top-quality viewing and assistant technology that was previously only available to bigger corporate players. It shows what we can achieve when we bring cutting-edge tech directly into our homes and demonstrates how far digital voice assistants have come in such a short time. With more innovations coming soon, there's no doubt that smart homes equipped with these assistants will continue to be at the forefront of the transformative capabilities of new technologies.
Chatbots will automate payments
Chatbot technology has advanced significantly in recent times, and economists and technologists predict that chatbots will become a major part of our daily lives in the coming years. One significant way chatbots are revolutionizing the world is by automating payments. Many kinds of financial transactions can be automated through chatbot technology, such as managing accounts and banking activities or making payments for goods and services.
In addition, customers have access to 24/7 customer support and can pay faster with increased convenience. This technology is cost-effective for global businesses that need efficient payment systems but also offers an improved user experience for customers worldwide. With the rise of this trend, it's safe to say that automated payments are set to become a game-changer in the 21st-century economy.
Chatbots for HR and internal enterprise use
Chatbots are quickly becoming the norm for human resources and internal enterprise use. As companies large and small struggle with new labor laws, the need for uniformity, efficiency, and accuracy in processes is greater than ever before. Chatbots can help provide a streamlined solution to some of these challenges: for example, by helping automate employee onboarding and training processes; providing answers to commonly asked questions from employees; and tracking vacation requests, shift changes, and other necessary information quickly and accurately – something that would be difficult or impossible with a manual system.
Comparatively speaking, chatbot technology is cost-effective, popular with employees (it helps them save time and demystifies standard procedures), and relatively simple to implement. While they still may not completely replace human resources, chatbot technology can certainly improve HR’s efficiency, which is why its increasing trend in this arena makes so much sense.
Chatbots will be integrated with social media
As the popularity of chatbot technology grows, so do the trends and applications surrounding it. One such trend is the growing integration of chatbots with social media platforms such as Facebook, Twitter, and Instagram. This integration has allowed companies to leverage social media channels to create a more engaging customer experience - allowing them to provide 24/7 support, answer inquiries quickly and even collect valuable customer data they might not have had access to in the past.
For example, Instagram recently unveiled technology that allows companies to use Chatbots to interact with their customers. This is a powerful tool for businesses because it helps them to respond quickly and efficiently to customer inquiries. For example, a bot can help direct people to the correct page or provide important product information in real-time. Additionally, chatbots can also collect data from customers to inform better company decisions, such as what type of ads they should be running. Instagram's Chatbot technology is invaluable, as it allows businesses to easily and effectively interact with customers personally.
We are living in an era where it is becoming increasingly apparent that technology can be used for good. The latest trends in chatbot are an excellent example. It is possible to improve the user experience by using chatbots to make things easier, simpler, and more streamlined. Greater interoperability allows different technologies to work together smoothly and efficiently, offering users a better overall experience. The development of standards such as JSON API is paving the way for more developers to get involved with creating bots that communicate across multiple channels. By setting APIs as common building blocks between systems, new possibilities arise in terms of suggestions, alerts, and actions that virtual assistants may take on behalf of their users making use of the interoperability benefits.
From banking services to healthcare, travel booking to retail, many sectors have taken advantage of artificial intelligence-fueled technology. Some more well-known examples include chatbots being used for authentication at banks like Capital One and interactions with customers by Burger King.
Similarly, London's Heathrow Airport has an AI-powered digital assistant to help travelers as they journey toward their destinations. Other notable implementations have been conducted by widely recognized companies such as Amazon and Google, who are utilizing bots for tasks ranging from communication and product recommendations to content delivery and health advice. Despite still being in its relative infancy, it appears clear to many that chatbot technology can be a valuable asset for any business looking for personalized customer service experiences.
Uber recently released its “Ride Pass” program, which was rolled out with the help of a chatbot to guide customers through their purchase process; Facebook Messenger has adopted a similar approach to conversational commerce with regard to shopping. The application OpenTable also utilizes chatbot technology to permit users to make real-time restaurant reservations, while many hotels are using similar mechanisms for booking services using natural language recognition tools. Clearly, the utilization of chatbot technologies can provide significantly enhanced customer service experiences making it an attractive solution for businesses today.
Chatbots are becoming increasingly popular and are being developed for a wide range of applications. Despite this, there are still many challenges that the industry must face to make chatbots more effective and reliable.
One of the most notable challenges is developing natural language processing (NLP) capabilities for the chatbot. This is critical for a chatbot to be able to understand requests from users and provide meaningful responses. Additionally, NLP technologies are necessary for the chatbot to be able to identify topics related to the user’s query or request.
Another major challenge faced by the chatbot industry is developing a wide range of knowledge bases. Knowledge bases are collections of information that the chatbot can access to provide answers to user questions. As the number and variety of potential inquiries grow, so must the knowledge base. This is one of the biggest hurdles for developers looking to use chatbots for more advanced tasks such as customer service and product recommendations.
Finally, developing an effective user interface is essential for a successful chatbot. Chatbots must be designed so that users can easily interact with them and understand their responses. This involves designing a chatbot with the right tone of voice and personality, as well as developing graphical user interfaces (GUIs) that make it easy for users to navigate and access information.
These are just a few of the challenges faced by the chatbot industry. While there is still a long way to go before chatbots become ubiquitous, meeting these challenges is essential for making them more reliable, effective, and user-friendly.
You may also be interested: Popular Fintech Technology Trends to Expect in 2023
As we've seen, chatbots are becoming increasingly popular and widespread. With the right strategy, they can be a valuable asset for businesses in a variety of industries. This is where the Onix expert team can help you avoid risks when building your custom chatbot and enhance your business processes by integrating it. If you need a proven technology partner to create a quality chatbot, drop us a line, and we’ll contact you as soon as possible.
Is chatbot use growing?
Chatbots are certainly gaining traction as helpful customer service tools around the globe. Used to automate conversations and answer customers' questions, they can free up human agents' time to tackle more complex tasks. We're seeing organizations of all sizes adopting chatbot technology - big businesses, small online stores, tech startups, and even local governments are increasingly getting on board. From conversational interfaces powered by natural language processing to AI-driven virtual customer assistants, advances in this technology have made it much more accessible and viable for companies of all sorts. With so much potential on offer and cost savings to be had, it's not hard to see why chatbots are gaining popularity - and why their usage is only set to grow from here on out.
What are the business benefits of using chatbots?
Chatbots are quickly becoming a must-have for businesses in the modern age. Not only do they assist customers with basic interactions, but they can also provide an unforgettable experience with their personalized responses. Chatbots offer many advantages to businesses, such as improved customer service, allowing customers to ask questions at any time of day, and getting instant results.
They also reduce response times and minimize the need for human staff. Chatbots responding to inquiries can handle incoming requests 24/7 so that companies don’t have to rely on limited office hours or team availability. Additionally, chatbots can be used to measure customer sentiment in real time, helping your business better understand customer needs and preferences. Overall, chatbots offer numerous benefits to companies, making them an invaluable tool in today's digital landscape!
How can I create a chatbot?
There are many ways to create a chatbot, but the most common method is to use a chatbot development platform. These platforms provide tools and templates that make it easy to create and deploy chatbots. Before you start creating, you need to follow the latest chatbot trends.
What are some popular chatbot development platforms?
There are many popular chatbot development platforms, including Chatfuel, Botkit, and Motion.ai. Each platform has its own strengths and weaknesses, so it's important to choose one that's right for your needs.
How much does it cost to create a chatbot?
The cost of creating a chatbot depends on the platform you use, the complexity of the chatbot, and the time and resources you have available. Generally, creating a custom chatbot can cost from $20K to $80K.
What are some tips for creating a successful chatbot?
Some tips for creating a successful chatbot include studying your target audience, making sure the chatbot's personality is appropriate for your brand and testing the chatbot before you launch it.