Chatbots are software applications that use AI technology and natural language processing (NLP)to understand people's requirements and help them get the desired outcome. A properly designed & built chatbot would use the prevailing conversation data to comprehend the type of questions people request. It analyses correct answers to the questions through a training period. Via machine learning and NLP, chatbots understand the context and gradually improve at responding to the queries in the future.
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The first chatbot was developed in the 1960s by MIT professor Joseph Weizenbaum and was named ELIZA. In 2009, Chinese company WeChat created an advanced chatbot. In 2016, the chatbot implementation speeded up when Facebook started up its developer platform & revealed the possibilities with chatbots via their Messenger app. Soon Google also adopted this technology with Google Assistant. After that, there have been many chatbot apps created on the website, social media, various applications, customer support, and many more.
There are multiple ways in which a chatbot can be built. In the present times, there are three types of chatbots which see commonly. These are:
As the name suggests, a rule-based chatbot follows a pre-designed rule. These chatbots are designed using a graphical user interface, and the bot builder designs the path with the help of a decision tree.
AI chatbots automatically understand after an early training period by a bot developer. In AI Chatbot, the user raises a query on the chatbot. Once a query is raised, the AI chatbot analyses the user request. It then identifies intent and entities. The bot then composes a reply and provides it to the user.
Live chats are used by the sales and development teams. These are the simplest form of chat options that answers the query raised by the user in real-time.
In the present times, the people involved in generating sales and marketing activities have to go through a lot of pressure not only in terms of the revenue numbers but also in improving the customer experience. We see a lot of increasing demand and expectation of the customers. The customers expect a quick and accurate response to their queries. At a certain level, a human can respond to these queries. However, after a certain point, the job has to be taken over by the technology. Because of these requirements, businesses started adopting chatbots.
Below are some of the advantages of using chatbots:
Chatbot helps to collect data from the customers by communicating with them. These comprise of getting insights about the activities, likings, problems etc. Through these queries, it is possible to look for the most common queries raised by the customers and the related answers which the customer is looking for. Based on these data, the company's trying to include them on the website to assist them.
Chatbot plays a vital role in increasing sales. Chatbot makes it possible to offer instant support to the customer. Once their query gets resolved, it is possible that they might take the required action as well. Hence, in turn, it increases the chance of lead generation and helps in generating more sales.
Through chatbots, it is also possible to market new offering to the customers.
Chatbots do not get tired like humans. These are available 24/7 to the customers. These chatbots respond to the users instantly.
Chatbots have made it possible to save a lot of money earlier distributed to the customer support teams in salary. During the initial phase of the development of chatbots, there is a need for a considerable investment. However, in the long run, it helps to automate customer support operations.
The repeated and simple queries can now be taken care of by these chatbots, and the bigger queries can be dealt with by the customer support team.
There is no doubt that the introduction of chatbots has played an essential role in reducing the pain to respond to the users' everyday rising basic queries. But one cannot ignore that these have disadvantages as well. Let us look at some of them:
Chatbots are mechanical, and thus they lack emotions. They respond to the user as per the pre-programmed answers. On the other hand, the customer support agent listens and understands the customers' emotions and responds to the query accordingly.
As highlighted above, chatbots are pre-programmed; there could be chances where the chatbot could not understand the customer's query and could not provide an answer accordingly.
Chatbots are developed to answer simple and common questions that the customers raise with facts. As they are pre-programmed, they cannot sometimes answer that requires decision making. There are occasions where the chatbot models do not fit a particular business model.
Chatbots indeed reduces payroll expenses. However, one cannot deny the fact that installing a complex chatbot can be pretty expensive. Gradually as you keep upgrading your chatbots, the cost also increases.
Chatbots need regular maintenance so that they provide the most updated and relevant response to the customers. With the change in customer preference and business priorities, the chatbot is required to get updated frequently. If these things are not taken care of, then the impact could be seen on the customer satisfaction level.
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What is Artificial Intelligence? A popular and widely used technology, Artificial Intelligence (AI), in simple terms, provides abilities to machines to perform a particular task that helps in reducing human effort. This is made possible via specific programming languages, tools & techniques, or codes, that are implemented into the machine so that it can perform tasks with minimal or no human intervention. History of AI and how it came into existence? The scope of Artificial Intelligence is massive, and it continues to grow each day. Though Artificial Intelligence has gained prominence lately, it may sound fascinating to know that scientists started to think about this technology in the early parts of the twentieth century. Alan Turing is considered amongst the most extraordinary scientist of the 20th century who created history by laying a strong theoretical foundation of computer science. He was a mathematician, cryptanalyst, logician, and a philosopher. In 1936, Alan Turing, in an article, introduced a theoretical device that was based on the notion that a machine can imitate any other machine (known as the Turing machine). AI Timeline: What exactly do we mean by AI? As highlighted above, Artificial Intelligence was coined in the year 1956 by John McCathy. He defined AI as science and engineering to make intelligent machines. It refers to the development of a computer system that has the potential to perform a task that usually needs human intelligence like speech identification, decision making, visual perception and interpretation between languages. We live in an era where we see the role of Artificial Intelligence in the form of robots, a machine which has vast application in recent times. AI application can be seen in healthcare, sales and marketing, business analytics and so on. INTERESTING READ: Will Artificial Intelligence Barge Higher in Post-Pandemic Era? Some Real-world Applications of AI: Google’s Predictive Search Engine: One of the most common examples of AI is the Google predictive search engine. We have observed that when we start typing anything on Google, a set of recommendation start showing from where we can choose. This is one of the simplest examples of Artificial Intelligence in action. Legal Document Analysis: A well-recognized Investment Banking company uses its contract Intelligence platform to access its legal document. Through the use of this AI platform, the time to access the legal document was reduced drastically. Although AI does not have the reasoning power, however, with the advancement in the technology now, Artificial Intelligence can solve the most complex tasks easily. Social Media/Networking Platforms: Popular website Facebook is where we can see the implementation of AI. Facebook uses machine learning and deep learning to identify the facial features of a person, and based on that, people can tag their friends. The auto-tagging feature which we see on Facebook is an example of AI. Voice-activated Personal Assistants such as Google Alexa and Apple are popular examples of AI. Self-driven cars: Artificial Intelligence plays a crucial role in self-driven vehicles with the best example being that of Tesla. Through the tech, the cars are capable of detecting any obstacle coming on its way. Email Applications: In Gmail, Artificial Intelligence helps to sort those mails which are spam based on specific keywords by using machine learning and natural language processing. Online Streaming Services: Netflix is yet another example of AI implementation, where movie recommendations are provided based on the type of search and studying the pattern of movies preferred by the user. What are the Different Types of Artificial Intelligence? There are three types of Artificial Intelligence: Artificial Narrow Intelligence: Artificial Narrow Intelligence is also known as weak AI, where artificial intelligence is applied to a specific task. A typical example of an Artificial Narrow Intelligence would be Alexa, which operates within a specified range. All the AI applications we see at present are Artificial Narrow Intelligence. Artificial General Intelligence: Artificial General Intelligence is known as strong AI, and it involves a machine that is capable of performing any intellectual task just like a human being. Till now, we have not reached this stage as there is no machine in the present times that have reasoning ability like human beings. Artificial Super Intelligence Artificial Super Intelligence refers to that point of time when the capability of the computer surpasses the capacity of a human being. Advantages and disadvantages of Artificial Intelligence After having a fair understanding of AI, let us look into the advantages and disadvantages of artificial intelligence. Advantages of using Artificial Intelligence Zero human error With the usage of Artificial intelligence, we would be able to nullify human error completely. The accuracy of the final results would increase. The only thing required here is that the machine is programmed correctly. Once this is done, the devices are able to make accurate decisions according to the previous information that they collect over time based on their past experience based on specific algorithm sets. Thus, it reduces the chances of error and improves efficiency. Zero risks Through AI, the task which could be dangerous to humans can be eliminated, and the results obtained through machines would yield good results. For example, through a machine it would be possible to identify any earthquake quickly and faster action could be taken. 24 hours availability Human beings have their own working capacity. However, when machines are considered, they have the potential to work round the clock. These AI machines do not get bored or exhausted, even though they have to repeat the same task multiple times. Nowadays, we see a lot of customer care queries been taken care of via AI technology. The most common example here is chatbots. Make faster decisions AI and other technologies can help make better data-driven decisions at a much faster rate than human beings. Moreover, the machine lacks emotions, hence the output we would derive would be unbiased. On the other hand, human beings may get emotionally carried away, but this is not the case with AI machines. They are extremely efficient in result-oriented decision making. Disadvantages of Artificial Intelligence AI machines are expensive Considering the complexity of an AI-enabled machine, AI technology can be pretty expensive. Designing a machine that can mimic a human being involves a huge amount of time, patience, money, and energy, making this technology expensive. Lack of creativity AI machines lack creativity because whatever actions these machines do are pre-programmed. AI machines are capable of doing a particular task. The biggest disadvantage here is that this technology cannot think out of the box. This is because the AI machine would analyse the situation and based on the pre-fed data along with the data gathered via past experience, the machine gives the output. Possibilities of job losses As AI technology reduces human effort and improves accuracy, most of the repetitive tasks have now been automated. With these features, businesses are gradually looking to switch to these technologies. Some of these jobs include the data entry operator, talking to the customer, chat support etc. Future of AI - Glance at Robot Sophia and Robot Rashmi AI has come a long way since its inception, and there is much more to come in the future. Let us look at AI-driven robots that have gained significant attention in the last couple of years. Robot Sophia Sophia is a humanoid robot that was built by Hanson Robotics. Sophia is a blend of science, engineering, as well as creativity. She is a human-crafted science fiction personality that can be considered the hope of AI technology & robotics. Sophia is capable of catching the vision of global viewers. She is also the first robot citizen in the world and the first robot Innovation Ambassador for the UN development program. Source: © Toxawww | Megapixl.com Sophia’s underlying AI parts can be fused in different ways. Hence, her response could be unique as per any given circumstances or communication. Sophia can use machine perception to distinguish human faces, identify hand movements, and see emotional expressions. She is capable of assessing feelings during any conversation and can support finding a solution to achieve the target. She also its own emotion and can nearly mimic human evolutionary psychology & several areas of the brain. Sophia has IK solvers & path planning that controls the hands, stare, and locomotion plan. Her walking body can do dynamic balance for adaptive walking over several terrains. Robot Rashmi Robot Rashmi is an Indian version of Robot Sophia that can speak multiple languages like Hindi, Marathi, and Bhojpuri. She is the RJ at one of the popular radio stations in India. Robot Rashmi was developed by a 38-year-old Indian software engineer. Robot Rashmi is India’s first lip-syncing robot that uses artificial intelligence, linguistic interpretation, visual data, and face interpretation that supports Robot Rashmi to act and respond to any question asked. Some Other Coolest humanoid robots: Ocean One Atlas Nao Petman Robear Pepper Mitra Junko Chihira Erica Geminoid DK Nadine Jia Artificial Intelligence Outlook 2030 Artificial Intelligence has a broad scope that is beyond one’s imagination. AI has the potential to transform productivity and GDP potential of the global economy. To make this possible, there is a need for significant investment in various AI technologies. As per a research report released by PWC in 2017, 45% of the total economic gains by 2030 would be through product improvements. It would be possible with the help of Artificial Intelligence which would support in increased customization, improved attractiveness, and affordability. The report also highlighted that AI would contribute over US$15.7 trillion to the global economy. It would boost the economy by 26% in GDP. INTERESTING READ: Tech hot Space: AI and Pitch Towards a Big Industry Opportunity
What is Fintech? Our digital world is expanding, continuously evolving and enabling businesses to become customer-centric. Just until a few years back, nobody would have believed if someone said they could transfer money from their phone only within seconds. The world is participating in a revolutionary experience, and we may not even know it. With the financial institutions providing their services online, the emergence of fintech has changed the financial dealings by 360 degrees. In simple words, Fintech refers to describing a technology which is integrated into providing financial services. Whether you are paying a credit card bill or buying a coffee at a local coffee shop or applying for a loan, fintech is with us all the time. And believe or not, it is just the beginning. Technology has entered every aspect of the world. Words like EdTech, MedTech, FoodTech are now a part of our regular vocabulary. From cashless payments apps to financial institutions providing services online to even virtual currency, the financial technology sector is growing exponentially. With integrating the latest technology in financial services, fintech is making life easier for the consumers and also for the providers. The term fintech includes a varied range of products, technologies and also innovative business models. These innovations are disrupting the traditional financial systems and changing the industry. The conventional financial services and new technology companies are now crossing each other's lanes to meet the demand from the consumers and stay relevant in the developed market. Hundreds of fintech companies emerging every day and changing the way consumers pay and borrow money. Investors are also showing keen interest in fintech companies. GOOD READ: Which are the top Fintech companies in Australia? How is the global fintech market performing? The global fintech market consists of technologies driving the change in the financial ecosystem. The services offered in the sector provide applications, processes and products for money transfer and payments, savings and investments, borrowing and also insurance. According to the Mordor Intelligence global fintech market report, the fastest-growing markets in the fintech industry are the Asia Pacific, and the largest market is in North America. A big chunk of traditional global banks, insurance companies and investment management companies are planning to integrate their services with the financial technology companies in the next three to five years. 2019 KPMG's report on the FinTech investment landscape shows that the investment reached a new record in 2018 with a whopping US$112 billion pumping into the fintech industry. In 2017 it was US$51 billion. The fintech market report by The Business Research Company states that the fintech industry market value is expected to reach US$309.98 billion through 2022. DO READ: Things You Need to Know About Fintech Financing Model: Majors in Action What are the common fintech examples that we use in everyday life? Banking: Current technology has completely changed the way conventional Financial companies use to function. Before fintech, traditional banks offered essential services such as funds transfer, loan payments, bank account overview etc. by physically visiting a bank. The fintech startups, however, have not only made the offering of these traditional services easier and faster, but the competition has led the conventional system to increase the number of services they offer. Apart from the necessary services banks these days are also offering AI chatbots, anti-money laundering systems and credit score information. These services are enhancing the user's experience. Another exciting area is Neobanks. These digital app-based banks are growing much faster than we thought. Neobanks operate online, and they do not have branches like traditional banks. They offer services in finance management by using big data and artificial intelligence. Mobile payment apps: Some of the biggest companies such as Apple, Amazon and Alibaba, have entered the mobile payment market with enormous investments. The reason is that the consumers are adopting fintech very fast. Applications such as Apple pay, Google Pay, Paypal, Amazon Pay are providing customer-friendly payment services to the consumers. They offer innovative strategies and cross-promotions with other companies, such as cashback, discounts on particular purchases etc. Insurance: Fintech has disrupted the traditional insurance market just as it has disrupted the traditional banking market. The fintech insurance startups are getting innovative and staying ahead of the traditional insurance companies. Insurtech companies are providing third party insurance, phone insurance, car insurance to home insurance to data protection. Credit monitoring platforms: Many countries, such as the United Kingdom and Australia, have complex credit score systems. Various companies offer services in order to maintain adequate credit score as for a layman building or improving credit score can get tedious and confusing. Fintech companies in this area have simplified this process. Financial technology business Clearscore provides individuals with an exact credit score, and it is also for free. There are many such startups successfully operating in this field. Robo-advisors: Robo-advising applications use technologies and algorithms to provide information on asset recommendation. These applications also help investors build and manage their portfolio and have managed to increase efficiency in the trading sector and even with lower cost. Fintech technology enables investors to manage their wealth and investment on their own. Individuals looking for investment managers to manage their assets are now often turning to fintech applications. Apart from robo-advisor services, the fintech in the trading industry has changed the way traditional trading is conducted. Investors now can buy and sell shares from their mobile phones. Virtual currencies: Cryptocurrency such as bitcoin, litecoin, and blockchain are one of the best examples of fintech. Cryptocurrency exchanges such as Coinbase and Gemini allow the users to buy and sell the cryptocurrencies on online platforms. Blockchain technology offers services such as smart contracts which utilises computer programs to automatically execute agreements between buyers and sellers or Ethereum, a distributed ledger technology (DLT) which maintains records on a network computer but has no central ledger. These technologies have practically transformed the investment world. DID YOU READ: Opportunities and Challenges for Neobanks in the Present Scenario What is the future of fintech? With fintech infiltrating every part of our financial world, it is difficult to ignore the benefits its financial technology is providing. The sector is not just helping the consumers but also putting pressure on the traditional financial system to evolve and deliver the best services to the consumers in better and faster ways. Fintech, however, like any other technology is falling prey to cybercrime. Now that fintech has proven its capabilities, the future of the industry relies heavily on providing security to its users. Most of the companies are engaged in creating awareness among consumers in order to avoid getting trapped in cybercrimes, such as financial fraud or identity theft. OTP (one-time-password), fingerprint or face recognition is trying to solve the problem. With cybercriminals staying a step ahead, financial technology companies will have to strengthen their cybersecurity to survive in the market. ALSO READ: Fintech Drives The Banking Sector: Barclays Employs Third Tech Tool