AI Chatbots in 2024 – A Business Guide to Its Functionality and Benefits

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AI Chatbots in 2024 - A Business Guide

We are living in the ever-evolving landscape of communication technology, where consumers are steering the direction of engagement preferences. With the emergence of technological advancements, customers now prefer to reach out to a business through multiple communication channels.

AI chatbots have emerged as a powerful tool to address these evolving preferences. They have brought an evolution in the way businesses interact with their customers. Chatbots provide businesses with an opportunity to provide a personalised experience to their customers, the latest being multilingual chatbots. A multilingual chatbot can be a progressive solution catering to diverse linguistic landscapes. This is particularly beneficial in a linguistically diverse market like India. 

In this blog, we explore the crucial role AI chatbots will play in driving business growth and enhancing customer experience in 2024, with a focus on its functionality and a myriad of advantages. Let’s dive in!

Getting Familiar With AI Chatbots

Unless you are living under a rock, you must be familiar with Alexa, Siri, and Google Assistant. All three of them are examples of AI chatbots. In fact, chatbots are everywhere; they have become a part of our everyday lives. Whether you want to order a pizza or book a movie ticket, there is a chatbot to assist you. But what exactly is an AI chatbot?

An AI chatbot is a computer software program designed to utilise advanced algorithms and stimulate human-like conversations with users. These chatbots leverage machine learning(ML), natural language processing (NLP), and artificial intelligence(AI) to understand and respond to user queries. 

Today, an increasing number of businesses are integrating AI chatbots into their websites and other systems to enhance their customer service. 

You must have seen an icon discreetly placed at the bottom of your screen when you visit a website. That small icon is the dependable chatbot. Most of these chatbots even welcome you on the website with a friendly “hello” or a casual question, like “How may I help you?” It provides you with instant assistance and solves your problems, enhancing your overall experience on the website.

Additionally, AI chatbots can continuously adapt and improve their understanding as they gather more data through user engagement and feedback. Businesses can even provide solutions to their customers in their native languages with the help of multilingual AI chatbots.

Understanding the Functionalities of Chatbots

In the last few years, AI chatbots have been revolutionising the way businesses interact with their customers online. They provide a wide range of functionalities that streamline business processes and enhance customer experience. Let’s take a look at some of the key functionalities.

Workflow Automation

One of the key functionalities chatbots bring to the table is the ability to automate workflows, like customer support, order processing, and more. They can streamline tasks and processes by performing repetitive tasks while also making them more efficient. This helps businesses save their human resources for more complex tasks.

In some sense, AI chatbots are productivity enhancers that can automate repetitive tasks and lower the risks associated with human errors. 

Omnichannel System

AI chatbots play a vital role in maintaining conversations with users across multiple digital channels. They have the ability to analyse user data and retain context to enhance an omnichannel experience. 

In fact, a 2022 survey showed that 60% of marketing leaders use AI to enhance customer experience by predicting their behaviour and needs. AI chatbots can even route the information of a user to a live agent when required. This enhances the overall customer experience. 

You must have used Zomato or Swiggy to order food online. These platforms also use the chatbot functionality to answer user queries related to order issues. These chatbots can further route the chat or call to a human agent if required.

AI chatbots can be integrated with various platforms, including Slack, Zoom, and social media apps, such as X, WhatsApp, Facebook and more. This way businesses can provide a smooth and seamless customer experience across all platforms.

NLP-Enabled System

NLP is the backbone of AI chatbots, empowering them to comprehend and respond effectively. It enables them to get a better understanding of human queries and provide valuable assistance to users, enhancing their overall experience. 

Businesses can enhance language comprehension and facilitate contextually relevant interactions with their customers. NLP-equipped chatbots play a major role in understanding anad addressing diverse needs of users. 

Multilingual Support

The ability to interact with customers in their native language can be a game-changer for businesses across the globe. That is why many leading companies are using multilingual chatbots to engage with their customers.

A 2020 study by CSA Research shows that 75% of consumers like to purchase products from websites available in their native language. With multilingual chatbots, businesses can break the language barrier and connect with their consumers effectively.

Robust APIs

APIs (application programming interfaces) with robust functionality, provide AI chatbots with the ability to integrate seamlessly with various applications and business systems. This helps them access user information and enhance overall operational efficiency. AI chatbots that adopt APIs can help businesses deliver projects faster and more efficiently. Companies can even use language APIs, like Reverie’s NMT, to translate text from one language to another while capturing the context and meaning of the source text. This way, they can offer customer support in a language that their customers prefer.

How Can AI Chatbots Benefit Businesses?

Round-the-Clock Availability

One of the challenges that businesses face when it comes to making customer service available 24×7 is the lack of resources. Fortunately, AI chatbots can help them overcome this challenge by providing round-the-clock customer support even outside working hours. This ensures addresal of customer queries in real-time. With round-the-clock availability, AI chatbots can enhance customer satisfaction while also building trust and loyalty.

Cost Efficiency

Did you know that implementing AI chatbots in customer service processes can save businesses about 30% on their customer service budget?

It is not possible for every company to afford resources to provide 24/7 customer service. However, these digital assistants can handle large volume of customer queries at the same time. Hence, companies do not need to hire an extensive human customer support team. This leads to reduction of operational costs associated with human resources, training, and salaries. As an added benefit, companies can also expand their product offering beyond their local geography without having to establish customer service teams in each location.

Operational Efficiency

AI chatbots are known for having excellent multitasking capabilities, which streamlines workflow. They can automate routine tasks, which leads to enhanced operational efficiency. 

While chatbots handle repetitive tasks, employees can shift their focus to more complex and strategic responsibilities. This way, companies can decrease response times and operational bottlenecks. Consider AI chatbots in healthcare services. They can free up a lot of time for medical professionals by scheduling appointments, retrieving health information, and more to concentrate on patients and offer them personalised care.

Personalisation and Enhanced Customer Engagement

One of the key advantages of AI chatbots is that they excel in delivering personalised experiences to customers. They can analyse previous conversations and understand the preferences of customers. This helps them in providing tailored responses and recommendations to customers. Personalisation is not restricted to addressing the customers by their names. 

Customers feel a stronger connection with their brands when they receive personalised responses and recommendations. The prompt and personalised interaction leads to a positive customer experience, which further increases customer trust. In addition to this, AI chatbots can also engage with customers in meaningful conversations and ask follow-up questions. They can even provide recommendations, which makes the customers feel valued.

Data-Driven Insights

Every interaction with customers can provide AI chatbots with valuable data. This data can be used to get insights into the preferences and behaviour of a user. With these insights, businesses can make informed decisions and refine their services.

It also helps in personalising their marketing strategies to meet the needs of their customers. The data-driven approach of AI chatbots helps businesses empower their customer expectations.

The Future of AI Chatbots

The exciting advancements in machine learning and NLP are paving the way for AI chatbots into 2024. These technologies will continue to grow, which will make AI chatbots even more sophisticated and intuitive. So, it is the right time for businesses to get on the AI chatbot bandwagon and make the most of their functionalities and advantages.

With solutions like IndoCord, Reverie is going beyond the conventional chatbot capabilities. It allows businesses to interact with their customers seamlessly in their native language. Personalised communication can go a long way in building stronger relationships with customers, and IndoCord helps you achieve exactly that.
If you want to learn more about Reverie and how it can help you build better customer relationships, click here!

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Reverie Language Technologies Limited, a leader in Indian language localisation and user engagement technology solutions for over a decade, is working towards a vision to create Language Equality on the Internet.

Reverie’s language practice is dedicated to helping clients future-proof their rapidly expanding content by combining cutting-edge technologies like Artificial Intelligence and Neural Machine Translation (NMT) with best-practice approaches for optimizing content and business processes.

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