AI and Chatbots in Industries
The use of AI is rapidly growing across industries. A recent Juniper Research report projects that global spending on cognitive and AI systems will reach $52.2 billion by 2022, with a compound annual growth rate of 46.2% from 2016 to 2021.
In 2018, the most significant impact of AI will be on automated customer service, with investments reaching $2.4 billion. The first goal of using AI across industries is to enhance product and repair quality. Ranked the second helps customers get more value from the company’s offerings (particularly within the insurance and commerce sectors). For these reasons, companies are successfully applying machine learning approaches to develop chatbots in the field of Natural Language Processing (NLP).
In 2016, chatbots worldwide reached a market price of $703.3 million, and experts predict they will grow at a compound rate of 35.2% to reach $3,172.0 million by 2021. As people are growing more conversant in chatbots, 35% of consumers want to ascertain more companies using chatbots, consistent with HubSpot. a number of the factors that drive this rapid climb of chatbots, include the rising demand of automated customer service tools and therefore the surge in demand of intelligent customer engagement.
Business Insider stated that investments in chatbots grew 229% between 2015 and 2016. All industries are racing to embrace this technological advancement. According to a Retail Dive article, the retail industry is expected to lead in AI and chatbot spending by 2018, averaging $3.4 billion. Banking and finance industry will rank the second with $3.4 Billion. By 2022, chatbots are going to be handling a minimum of 85% of all customer service interactions. Manufacturing will spend $2 billion, followed by $1.7 billion investment in healthcare in AI-powered diagnosis and treatment systems. Almost 90% of the healthcare industry has already invested in AI and is predicted to succeed in 100% by 2020. The energy industry uses 13% of its AI in customer service as compared to almost 74% in IT.
Other industries like housing, events, governance, trade unions, accounting, construction, service desks, and development are also heavily investing in AI. However, their spending on chatbots and customer service areas is less due to spending priorities.
The benefits of using chatbots are abundant for both industries and consumers. On average, chatbots could save businesses up to £6 billion annually across industries, as per a 2016 study. Additionally, 34% of executives report that chatbots eliminate unnecessary tasks. This enables them to focus on deeper thinking and creativity, according to PWC.
When asked what motivates them to use chatbots, 69% of customers said the main reason is receiving an instant answer to their questions, as revealed in the 2017 chatbot survey. Furthermore, 48% of users prefer contacting a company through live chat over other methods of contact.
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