Ending Soon! Save 33% on All Access

Know All About Chatbots That Are Overtaking The Traditional Customer Services The current global market-size for chatbots is $3.5 billion and is expected to grow to $5.6 billion according to the research and advisory company, Gartner.

By Tahira Noor Khan

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

Aakrit Vaish Co-Founder and CEO of the conversational AI platform, Haptik, says that the biggest challenge that the chatbot industry faces is ignorance. "We have to keep educating people about the technology and its benefits. Like how can the technology help them to streamline operations, in cost optimization, data collection and management to inventory and supply chain management," says Vaish.

Chatbots, chatterbots or bots are computer software that simulate interaction between humans and machines. Alexa, Google Assistant or an automated banking bot are some examples of bots which are automating processes and saving human time by its services. Currently, there are two major variations of bots, they are Rule-based bots and AI bots.

Rule-based bots follow a specific flow command and are not dynamic in their interactions. Common examples of rule-based bots are customer service calls where you have to choose a specific number or command to know specific information.

AI or Artificial Intelligence backed bots are more dynamic and advanced in nature. They use NLP or Neuro-Linguistic Programming to enable a machine to be capable of having a varied and emotionally intelligent conversation with humans. Alexa is an example of the same.

Related Read: 7 Ways Chatbots Can Benefit Your Marketing Strategy

Where are bots being used?

Bots are being used in e-commerce, banking, travel, real estate and other sectors. In India, Mahindra and Mahindra, Raymonds, Axis Bank, ICICI Bank, Godrej, Tata Group, Reliance Group are some of the many companies using bots.

"The global market for chatbot by 2023 will be $ 5.6 billion and 36 per cent of it will come from India," says Himanshu Saxena, Co-Founder and CEO at Suzami Tech. According to Saxena, chatbots are currently being used for three basic functions, they are - Customer self-service, Operations assistance and Enterprise functions.

Related Read: Social Media Marketing Strategies With Chatbots

What is the future?

"Bots in various languages, audio chatbots and bots having more evolved conversational capabilities are the trends that will emerge stronger," says Ajit Deshmukh, Managing Director, Equirus Capital. Saxena believes Bert by Google is a groundbreaking achievement in chatbot technology.

"India is a huge market and SME market is largely untapped by the chatbot industry. This provides a huge growth opportunity," claims Saxena.

Deshmukh says investors are keen to place their bets on the chatbots. "Chatbot technology will become more prevalent in the coming times. Investors are keen to invest in it. The market for the chatbots is growing."

Related Read: Top 10 Best Chatbot Platform Tools to Build Chatbots for Your Business

Tahira Noor Khan

Former Junior Features Writer

Thought Leaders

Need More Confidence? These 10 Bestselling Books Will Help Improve Your Self-Esteem

Self-esteem can be hard to come by and even harder to maintain. To give yourself a boost, try these authors' words of wisdom.

Side Hustle

The Side Hustle He Started at Age 15 Led to a $4 Billion Boon for Small Businesses: 'They Would Take a Chance on Me With Their Hard-Earned Money'

Nic Beique asked his local barber, gym and more if they'd like him to build a website for their businesses.

Growth Strategies

Green Hydrogen Adoption: Where Does India Stand?

The cost disparity poses a challenge to the widespread adoption of green hydrogen, especially in sectors where cost competitiveness is crucial.

Growing a Business

Want to Expand Your Market Overseas? Here's Everything You Need to Know About Global Logistics in 2024

With rising geopolitical tensions and changing market conditions it can be hard for businesses to navigate supply chain logistics even in a post-pandemic world. Here are three tips from the CEO of an international customs brokerage.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Starting a Business

I Wish I Knew These Four Things Before Starting My Own Business

Starting a business is hard work to say the least. These are four lessons I wish someone had shared with me before going solo, so I'm here to share them with you.