Jhalak Sharma

2020HRLP011

Chatbot
Even if you haven’t held a conversation with Siri or Alexa, you’ve likely encountered a chatbot online. They
often appear in a chat window that pops up with a friendly greeting:

 Thank you for visiting our site. How can I help you today?
Depending on the site, you might ask about a broken appliance in your home or inquire about
investment advice. The chatbot is programmed to respond accordingly and even ask follow-up
questions. From customer service chatbots online to personal assistants in our homes, chatbots
have started to permeate our lives, and they’re often helpful

Defining Chatbot: Chatbots are a form of conversational AI designed to simplify human interaction with
computers. Using chatbots, computers can understand and respond to human input through spoken or
written language.Chatbots are programmed to simulate human conversation and exhibit intelligent
behaviour that is equivalent to that of a human.

Types of Chatbots: Scripted and Learning

 Scripted Chatbots:They specialize in responding to specific commands and answering specifically

 Learning Chatbots: Chatbots that use machine learning are chatbots that can learn and become
better over time. The technology here isn’t half as complicated as you might think, even though it
does appear quite sci-fi at first glance.What’s particular about machine learning-powered chatbots
is that they can understand natural speech. Unlike the scripted chatbots,machine-intelligent
chatbots can understand questions and commands the way real people phrase them, as opposed to
only understanding a set of predefined commands. This is beneficial if you’re looking to offer a
human-like experience. For example, Mitsuku. For example, if someone asks, "Can you eat a
house?", Mitsuku looks up the properties for "house". Finds the value of "made_from" is set to
"brick" and replies "no", as a house is not edible

How do chatbots work?

 Chatbots communicate through speech or text. Both rely on artificial intelligence technologies
like machine learning and natural language processing.
 Natural language processing is a branch of artificial intelligence that teaches machines to read,
analyse and interpret human language. This technology gives chatbots a baseline for understanding
language structure and meaning. NLP allows the computer to understand what you are asking and
how to appropriately respond.
  Chatbots are programmed to simulate human conversation and exhibit intelligent behaviour that is
equivalent to that of a human. With developments in deep learning and reinforcement learning,
chatbots can interpret more complexities in language and improve the dynamic nature of
conversation between human and machine.
 Essentially, a chatbot tries to match what you’ve asked to an intent that it understands. The more a
chatbot communicates with you, the more it understands and the more it learns to communicate
like you and others with similar questions. Your positive responses reinforce its answers, and then it
uses those answers again.

What can a chatbot do for your business and customers?

Chatbots can bring the latest news, generate leads, provide weather information, help book a flight, sell a
product, or provide customer service. The sky is the limit.HubSpot’s research shows that 47% of consumers
would buy items from a chatbot. In addition to that, according to chatbotslife.com, an e-commerce chatbot
can increase the conversion rate by up to 25%!

 Better and faster customer service : This is what customers want – they’re impatient, and they
want what they want RIGHT NOW – research shows that 82% of today’s buyers demand an instant
answer to their question (“instant” here means a response rate below 10 minutes)
 Create sales opportunities: Chatbots can boost your conversion rate by engaging 100% of a
website’s visitors. Example? Your returning customer just opens your website again – a chatbot can
“hook” a client by offering them a returning visitor’s discount…and boom! – your customer gets the
discount andbuys the product!
 Save a lot of time: Use bots to respond to simple queries. It’s a win-win situation, and it’s highly
efficient. You save time instead of answering repetitive questions, and a customer doesn’t have to
wait for a phone call or an e-mail; they just get an instant reply (e.g. about their order’s shipment
status)
 Collect leads: You ran out of stock and the customer wants to leave the website? No problem. A
chatbot can ask them for an e-mail, and you can later inform your client that the product is
available
 Virtual assistant chatbots: Personal assistants like Siri, Cortana and Alexa have risen in popularity as
their benefits have become readily available and easily embedded into the daily life of consumers.
People use them to quickly retrieve information, schedule appointments and interact with smart
home features
 Travel, hospitality and tourism:Chatbots can do a great deal for the travel, hospitality and tourism
industries. They offer 24/7 access to data, allowing customers to book trips and rooms instantly and
on the go
 On-demand services: Imagine describing your perfect pizza in a text message and then having it
appear on your doorstep. This is exactly the sort of feature a chatbot can provide for on-demand
services.Pizza Hut’s technology allows customers to place orders with a single touch of a finger. It
can answer frequently asked questions and present information about the latest promotions.
 Because the bot is so easy to access and doesn’t need to be installed separately, users don’t feel
any pressure talking to it, which results in higher retention rates and easier ordering
 Banking and Finance: A great number of global banks have already integrated chatbots with their
services: American Express, PayPal, Bank of America, Mastercard, Visa, and others. Some of the
financial assistants are Eno, HiCharlie, or Trim. A chatbot could let you know whenever unusual
activity happens on your account to determine whether it’s you. It could also remind about fees,
upcoming charges, and so on.

Are Chatbots the future?

The question whether chatbots can be considered the technology of the future is getting simpler to answer;
this tool is clearly becoming an important part of marketing and customer service strategies for business
around the world.

Markets are trending towards automation – companies want to eliminate routine tasks, speed up
processes, hire fewer people, increase revenue and conversion at the same time. It would definitely be
hard to achieve all of that without a few extra hands (or a few extra lines of code).

Research shows that customers accept chatbots as a part of customer service and e-commerce, and in
addition to that, 80% of companies are already using chatbots or plan to start using them by 2020. Both
businesses and customers accept this solution. What are chatbots to the market, then? The future.

If you want to be a part of business future, it’s worth to include chatbots in your marketing, sales, and
customer service strategies.