Chatbots Point of View
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“By 2020, the average
person will have more
conversations a day with
bots than they do with
their spouse”
L. HEATHER PEMBERTON | GARTNER
Chatbots Point of View
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Value throughout your organization
Chatbots are key in your organization’s digital journey and in delivering next generation intelligent customer service.
Improve customer acquisition
Show your potential customers your advanced
digital capabilities and experience with cognitive
technologies.
Rapidly scale up and down, always being able to
serve new customers.
Chat interfaces are everywhere. customers are
ready for the next step: automated chatting.
Reduce churn
24/7 customer support
High degree of accuracy and high-throughput.
Provide high quality support, whenever the
customer demands it.
Increase customer satisfaction by eectively
solving their issues
Increase revenue per user
The supporting tasks will be performed by the
Chatbot. Use your people to do what they do
best; sell products and services.
Gather, analyze and act on the customer’s
preferences and irritations.
Minimize cost to serve
15 – 90% cost reduction opportunity depending
upon the characteristics of the functions selected
for automation.
Short payback period with low integration costs and
high potential ROI.
Mitigate security risks
Easily scale up and down depending on
customer’s demand.
Chatbots Point of View
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Intelligent
Advanced software learns from past
interactions, improving responses over
time
What is a Chatbot?
Chatbots oer a conversational experience
using articial intelligence and natural
language processing to mimic conversations
with real people.
Engaging
Enables human-like interaction
delivered through a channel that is
easily scalable
Eective
Let users perform tasks eciently and
accurately through conversational self-
service
Chatbots Point of View
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Rise of the Chatbot
Chatbots Point of View
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Computer power driving Enterprise Intelligence
Systems have evolved from mechanical computation & tabulation devices to intelligent systems that can emulate human cognition.
1900s
Tabulating system era
Mechanical devices assisted in
organizing data and e.g. making
calculations for employee sales
performances evaluation purposes. Ex.
Hollerith Tabulating Machine.
1950s
Programmable system era
Programmable systems enabled Space
Exploration and the development of
the internet. This era will continue
indenitely, and will underpin the era
of computing that we are in now. E.g.
Windows Desktops / ERP Systems.
2010s
Cognitive era systems
Cognitive systems are computer
systems that have capabilities to
emulate the human brain. Ex. Self-
driving cars, Chatbots, Virtual Agents...
2020s
Amplied Intelligence
Future systems will be able to mimic
human intelligence and entirely
replicate human interactions.
Welcome to the Cognitive Era!
Big data technologies in conjunction with cognitive computing enable us to
extract insight from data that was previously unused.
Key drivers
Exponential growth of Data Smarter algorithms
Faster processing speed
Chatbots Point of View
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Market forces driving Chatbot opportunities
Developments at both the side of supply and demand drive the added value of Chatbot technology.
Demand
Increasing pressure on contact centers
High turnover rates, increased need for training and
the necessity for reducing operating cost are putting
pressure on the traditional contact center.
Rising demand for self-service
Customers are demanding self-service. No longer
are they prepared to wait weeks, days, hours or even
minutes for an employee to help them. They need their
problem xed and they need it xed now!
Supply
Technological advances in AI and NLP
Chatbots are going beyond keyword matching.
Advancements in Natural Language Processing,
processing speed, machine learning models and data
availability have made this possible.
Chatbot platforms maturing
As Chatbot technology becomes more popular, their
development platforms become more mature. They
come with easy to grasp drag-and-drop interfaces,
allowing business users to build and manage Chatbots
themselves.
The Rise of the Chatbot
Chatbots Point of View
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Towards user acceptance
Due to improvements in Natural Language Processing, Chatbots are shifting from command-driven towards more intelligent, conversational driven
‘Virtual Assistants’, which are much better at determining context and user intent.
Technological advancementLow
High
User acceptance HighLow
Chatbots Point of View
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Chatbot Types
Chatbots Point of View
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Evolution of Conversational AI
Chatbots are like apps that users interact with in a conversational way, through text or speech. As technology advances, Chatbots are able to better understand
both written and spoken text.
A Chatbot may be as simple as basic pattern matching with a response, or it may be a sophisticated weaving of articial intelligence techniques with complex
conversational state tracking and integration into existing business services.
Scripted Chatbots
• Basic and scripted
• Looks for key phrases & give
pre-defined responses
Intent Recognizers
• Machine learning capabilities
• Greatly improved understanding
of user intent, relationships
between words are taken into
account to extract meaning
from a request
Virtual Agents
• Able to understand what a
human is trying to achieve
and can hold an end-to-end
conversation
• Connects to other systems to
leverage user data and insights
• Learns and improves over time
Human-like Advisor
• General AI, also known as
human-level AI or strong AI
• The type of Artificial Intelligence
that can understand and
reason its environment as a
human would
Chatbots Point of View
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Chatbots have diff erent levels of intelligence…
There is no clear separation between Chatbots and Virtual agents, as they operate within a large range of complexity in both dialog and processes. Both sides of
the spectrum have valuable applications. Below are two examples of applications of di erent complexity and intelligence.
The user’s intent is
recognized.
The user’s intent is
recognized.
The entities ‘amount’,
‘recipient’ and
‘description’ are
recognized.
The Virtual Agent
knows which
accounts exist and
asks the user from
which account the
money should be
transferred.
The chatbot
transfers money
from the user’s
checking account
using the integrated
back-end systems.
The chatbot
provides extra
information
to improve
the customer
experience.
The chatbot asks for
con rmation based
upon the recognized
entities.
In a FAQ knowledge
base, the question
is linked to a
standardized
answer.
Chatbots Point of View
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…and there is a large range of valuable solutions
Chatbots come in various degrees of intelligence and range from answering questions to having the full capabilities of a service employee. The right level of
intelligence should be picked depending on the use case.
FAQ Chatbot
FAQ Chatbots are perhaps the most simple form of
a Chatbot, which can already bring plenty of value. It
can understand questions and gives the user the most
relevant answer.
Virtual Assistant
With slightly higher intelligence we nd the Virtual
Assistant, which has more integration with enterprise
systems and therefore can perform basic actions, such
as looking up personal information.
Virtual Agent
The most intelligent Chatbots are Virtual Agents, which
can completely replace an employee. These bots can
handle the most complex dialogs, processes and
security protocols.
Self-learning Chatbots placed on a webpage can
decrease the amount of phone calls to a service
desk dramatically answering the most frequently
asked questions.
Virtual Assistants decrease service desk workload
by, for example, looking up vacation days of
an employee, or enabling an employee to buy
vacation days through the Chatbot.
Virtual Agents can handle complex processes,
such as walking a client through making a bank
transfer or making changes to their personal
information, eectively replacing an employee.
Chatbots Point of View
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Chatbot applications
Chatbots have a broad range of applications; they help users with information requests, reservations or personalized tasks like money transfer.
You are in a hurry to catch a train to bring you to the
concert of your favorite band. Quickly check if you are
going to make it!
You have just heard about an important meeting but
are not at the o ce. Use the Chatbot to quickly identify
free rooms and book it instantly.
Instantly transfer money. Use a familiar interface to
transfer money, request account information and
much more…