By Imtiaz Bellary
With the Indian artificial intelligence market projected to reach $3,935.5 million, with a compound annual growth rate (CAGR) of 33.28%, according to IMARC Group, the growing demand and game-changing role of this cutting-edge technology for businesses cannot be disputed. From chatbots to picture recognition, modern organizations are increasingly leveraging AI to enhance operations, automate jobs, and create more personalized consumer experiences. However, amongst other unparalleled benefits of AI, chatbots have certainly shown to be an invaluable tool for businesses.
AI-enabled chatbots have provided organizations seeking to boost sales and service productivity with an efficient way to customize customer experiences, automate monotonous processes, and increase operational effectiveness. According to IMARC Group, the global chatbot market size reached $4.6 billion in 2022 and is predicted to reach $17.2 billion by 2028, growing at a CAGR of 24.8% between 2023 and 2028, with APAC regions leading the way. This data clearly shows that the use of AI-powered chatbots is set to increase in the future, unleashing productivity for organizations.
Dominance of artificial intelligence & rise of chatbots
As a result of rising internet usage, increased technological investment, and improved digital infrastructure, artificial intelligence has outpaced other technologies in the market today. Presently, businesses can be seen largely leveraging AI to better streamline their functioning and target improved operational efficiency.
The emergence of chatbots, among AI’s other significant contributions, has undoubtedly been a blessing for organizations. Chatbots, according to Deloitte, can cut handling time by as much as 77%. Contributing to increased corporate productivity, AI-based chatbots are not only saving time and speeding up procedures but also eliminating human error and increasing operational efficiency.
Role of AI-powered chatbots: Transforming businesses
Enhanced customer support: AI-enabled chatbots assist organizations in handling a large number of customers while delivering improved customer assistance and eliminating the need for human support. 80% of typical customer inquiries can be handled by AI chatbots, according to an IBM study. Every business strives to provide excellent customer service since doing so increases customer satisfaction and fosters strong brand loyalty. AI-powered chatbots aid businesses achieve this aim by delivering prompt resolutions to customer concerns.
Individualized consumer experience: AI-backed chatbots have advanced significantly from being confined to scripted or rule-based dialogues to now using machine learning and natural language processing to deliver personalized responses. This, as a result, has provided businesses with an enhanced way to offer individualized experiences to customers, thereby making them feel heard and valued.
Optimizing operational effectiveness: In addition to fostering pleasant interactions with consumers, AI-powered chatbots automate the majority of tasks, improving operational efficiency. Time-consuming monotonous, and repetitive chores discourage vital staff members from focusing on more important duties that require extra attention. By reducing delays, speeding up processes, minimizing human error, and enhancing operational efficiency, chatbots contribute to greater business productivity.
AI-enabled chatbots: Reshaping the future of industries
AI-enabled chatbots have emerged as an excellent tool transforming businesses as new-age technologies take over every significant industry. The days of manually processing every client interaction, which was undeniably time-consuming and liable to error, are long gone. Businesses can now offer effective customer service with speedy resolutions thanks to AI-powered chatbots. Furthermore, by eliminating mundane tasks, chatbots have also allowed crucial employees to concentrate on other essential jobs. As a result, companies can save costs while also increasing lead quality and expanding their customer base. Considering the current growth traction of chatbots, it is safe to say that these AI-focused chatbots are anticipated to get more advanced with technological developments, providing organizations with a multitude of novel opportunities to pursue higher growth.
The author is managing director, Engati