Over the past few years, there has been exponential growth in the usage of intelligent chatbots due to changing demands from both consumers and businesses. In 2023, the chatbot trends are significantly getting updated with the latest innovations and technologies.
Chatbots that used to perform simple tasks like sending text messages, flight status, getting directions, etc., have evolved into sophisticated tools today. The advancement in AI and NLP has taken chatbots to a whole new level. It has bridged the gap between robotic and human conversation, making chatbots emotionally sensitive and autonomous.
Since consumers no longer seek only round-the-clock service, but also quick resolutions, conversational AI combined with automation has been able to create personalized customer experience at scale. The blog will walk you through some of the statistics of chatbots and some of the common chatbot trends we are going to witness in the coming years.
Chatbot Trends and Statistics for 2023
The research-based statistics below will provide valuable insights related to AI chatbot trends.
- The global chatbot market size which was USD 2.9 billion in 2022, is estimated to reach USD 10.5 billion by 2026. (marketsandmarkets)
- The worldwide chatbot market revenue is predicted to amount to USD 454.8 million in 2027, which was USD 40.9 million in 2018. (Statistics)
- By 2027, around one-fourth of organizations will use chatbots as the primary customer service channel. (Gartner)
- Instead of traditional mobile application development, more than 50% of enterprises will spend more per annum on chatbot creation. (Gartner)
- It is estimated that chatbots will handle 70-90% of queries by 2024 (CNBC)
- As per Invespcro, the chatbot helps businesses save up to 30% of customer support costs by answering 80% of repetitive questions. (Invespcro.com)
- A Google trends report shows that, in the past 5 years, the interest in AI has increased nearly 3 times. (Google trends)
- While 60% of millennials are found using chatbots, out of which 70% of them have had a positive experience. (Forbes)
- 47% of consumers are ready to make purchases using a chatbot. (Hubspot)
- As per the report, insurance companies are likely to save $1.3 billion globally by 2023 by using chatbots. (Juniper Research)
- The most common uses of chatbots are sales 41%, customer support 37%, and marketing 17%. (Intercom)
- After using chatbots, 90% of businesses encountered quicker complaint resolution. (MIT Technology Review)
- When it comes to customer support, 64% of businesses trust conversational AI for a more customized support experience for customers. (Statistica)
- In an online retail situation, 34% of customers are more comfortable interacting with AI chatbots rather than talking to live agents. (Statistica)
- 58% of customers’ expectations towards business have increased due to Emerging technologies like chatbots and Voice Assistants. (Salesforce)
- Chatbot with higher audience engagement generates a response rate as high as 80-90%. (Matthew Barby)
- The greatest customer acceptance of AI chatbots in online retail stores is 34%, followed by banking at 20% and the insurance industry at 15%. (Invespcro.com)
- As per Juniper Research, the insurance sector will save up to 1.3 billion dollars in coming years by deploying Chatbot for customer support. (Juniper Research)
- 70% of white-collar employees use a chatbot to smoothly carry out daily repetitive tasks. (Gartner)
- A survey conducted by Facebook showed that, 79% of users felt confident talking directly to live support agents instead of chatbots. (Meta)
The future outlook for chatbots in 2023
Each day more businesses are embracing chatbots as a crucial part of customer service. As per Reports and Data, by 2026, the worth of the chatbot market will be $10.08 billion.
Therefore the future holds a lot for AI chatbots. Yet it doesn’t mean that we’ll be introduced to a whole new technology. But we’ll see that chatbot will become even more mature and capable of anticipating potential users’ needs and increasing efficiency.
Therefore here are a few trends that you’ll be experiencing in the coming years.
1. Chatbots will be more human-like
AI-based chatbots are expected to be more human-like in the upcoming years. Businesses will concentrate more on creating and utilizing chatbots that are indistinguishable from humans. And that can be achieved with an improvement in the field of sentiment analysis, NLP, etc.
NLP chatbots enables computers to understand text and spoken words just like human beings can. Technologies like machine learning and deep learning help computers to process human language, understand it, and figure out the speaker or writer’s intent and sentiment.
Sentiment analysis comes under ML and NLP, which enables the chatbot to determine a user’s emotion via text or voice data. AI chatbot uses sentiment analysis to tailor responses in tune with customers’ moods and provide relevant solutions.
2. More use of AI in contact centers.
Since deploying an AI chatbot improves efficiency and reduces service costs, we will see more contact centers reaping benefits from it. The advanced automation improves customer experience as it offers a self-service tool without having to connect with human representatives.
At the same time, a chatbot can also transfer the call to the live Assistant if the problem is complicated. The conversational AI integrates CRM and offers personalized customer interactions. It keeps track of past conversations and makes it easier to fetch the data immediately when required.
It also schedules customer meetings and performs follow-ups when service representatives are unavailable.
With so much impressive power, there will undoubtedly be more use cases of AI in customer service.
3. Payment Automation
Instant payment will make the customer journey more accessible in the future, and chatbots will allow businesses to automate simple payments. Customers will be able to make the payment over live chats or apps They no longer will have to leave the app or chat for payment.
Thereby selling directly inside your automated messenger by the bot can be quickly done.
Not just that, bots can answer queries related to account balance, send payment alerts to customers, and collect payments.
4. Most social media platforms will adopt AI
Well, social media is no longer just a platform for connecting with friends and family. Today, social media has a wide range of use cases. And businesses have been making the most out of it.
Be it getting in touch with customers, taking care of leads, or nurturing potential clients. Social media plays a vital role.
And amidst making these processes smoother, businesses are employing chatbots.
Integrating AI chatbot with social media helps you study and evaluate various aspects of customer behaviors and allows you to analyze substantial user-generated data like:
- How much time your customers have spent researching the product.
- Which is the most preferred platform.
- The intent behind using the particular social media platform.
5. Rise of voice bots
Voice-based assistants have been rapidly finding their way into our daily lives. Unsurprisingly, there will be more voice-driven customer interactions and research in the upcoming days.
For that matter, leading corporations (Google and Amazon) are ahead in the race to deploy voice-driven bots.
Voice bots make it easier for users to get the work done without having to lift a finger. People of any age group can enjoy technology. The bots provide a multilingual solution removing language barriers and offering a personalized solution.
It provides reliable information to customers in real time.
You can enjoy the benefits of both text assistance as well as voice.
6. Better security
Cyber security is a prime concern at this time. The world has experienced massive cyberattacks in past years, mainly ransomware and phishing. AI chatbots have not been spared from the threat of these attacks.
While Consumer dependency and expectations towards AI are increasing, improving defense has become fundamental.
The AI keeps a record of customers’ personal information like contacts and payment details in customer service functions. Protection of these credentials is crucial.
Therefore better security for these bots will be a top priority in the coming years. More importance will be given to voice chatbots so that customers can trust them with their sensitive information.
7. New applications
Customer service is where we’ve mostly seen the use of AI chatbots. Over the next decade, innovations and technology will give birth to many more applications.
Businesses in particular, will rejoice a lot from these advancements. For instance, a new AI chatbot with translation capabilities will help companies expand worldwide and offer better customer service internationally.
While we have already seen a glimpse of advanced translation AI over the years, this specific innovation could go mainstream shortly.
Likewise, AI chatbots are more likely to find their way into human resource departments worldwide. We’ll be experiencing a shift from customer service to employee service bots. Human resource versions will probably become more popular, assisting training employees, IT helpdesk, and administrative assistance functions.
8. Intent recognition will determine the quality of bots.
If businesses offer personalized customer service, people are always willing to pay more. Chatbots should be capable of grasping the intent of conversation at a high level to provide personalized support.
However, deploying a simple rule-based chatbot will not bring significant competitive advantage, as they are only designed to answer frequently asked questions.
The organization should integrate AI-driven chatbots that can:
Understand the intention behind the conversation, ask questions to customers for better understanding and provide useful information to the customers when they ask for it.
Wrap-up
AI technology is only growing. The increased investment and technical innovation will give us more secure, capable, and versatile chatbots in years to come. Thereby, Organisations and users of every industry will trust this communication tool. After looking at 2023, chatbot trends will bring more job opportunities for coders, designers, and data science professionals.
Overall, advanced AI chatbots will generate billions of retail sales and offer delightful customer support.