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2021/09/06

What is AI chatbot? Detailed explanation from basic knowledge to business utilization effects and introduction

When browsing Internet sites, we often see small screens pop up and chatbots answer our questions. Chatbots are capable of answering questions in place of humans, and the evolution of artificial intelligence (AI) has played a major role in their widespread use. However, not all chatbots are powered by AI. Here we will provide you with knowledge about AI chatbots and information that will help you introduce them.

Table of Contents

    What is AI Chatbot?

    First, let me explain the basics of chatbots.

    1) Are there chatbots that do not use AI?

    Chatbots are robots (programs) that automatically conduct short conversations (chats) in real time. Chatbots can be broadly classified into two types: AI-equipped (artificial intelligence type) and artificial incompetent (scenario type). In other words, chatbots and AI are not the same thing. A scenario-type chatbot responds to questions according to predefined rules. AI chatbots, on the other hand, utilize machine learning to automatically analogize questions and responses based on keywords in a conversation.

    2) Advantages of AI chatbots

    Scenario-based chatbots cannot respond to unanticipated questions. However, AI chatbots can respond in many more ways than scenario-type chatbots, and can handle a wide range of expressions.

    AI chatbots allow AI to self-learn based on given data and accumulated logs, and can respond with increased accuracy. The probability of understanding the intent of human spoken language (natural language) and responding accurately in response to notational quirks is improved. This allows for a wide range of conversational content and flexibility in dealing with different modes of expression, resulting in a natural dialogue as if you were talking to a human being. Since there are no fixed answers in a standardized format, it is also possible to respond to chit-chat.

    The Latest Trends in AI Chatbots

    For general companies, a chatbot help desk function is provided in the starter pack service for telework, for which demand has spread with the Corona disaster. AI chatbots are also being used in everyday life, for example, as an "AI-based worry counseling service" and "AI-powered pet-like robot that recognizes back-and-forth conversations.

    Furthermore, chatbots that support multiple languages have been adopted by international airports, train stations, central ministries and agencies, famous hotels, and local governments nationwide. At airports, AI chatbots can guide users to secondary transportation, flights, gates, etc., according to their situation, with only a connection to Wi-Fi and as much information as an information counter.

    Chatbots are attracting renewed attention at Corona as a contactless technology that can be used to reduce congestion and prevent traffic congestion, and their use is expanding. In addition to answering users' questions, they can quickly provide emergency information and even guide users to uncrowded spots and routes based on their location.

    Learn more about AI chatbots

    We take a closer look at the effectiveness and mechanics of AI chatbots.

    (1) Effects of introducing AI chatbots

    ▶Reduce the burden of customer support and helpdesk

    They can operate 24 hours a day, 365 days a year, and even when a person in charge is not available The system does not cause any frustration even when the person in charge is not available. When inquiries become more personalized, they can be directed to a manned chat room.

    In addition, AI chatbots can handle both routine and more complex questions. The "human-like" response through natural conversation has the advantage of not making the customer feel cold.

    ▶More contact with customers.

    There is no hesitation in making a call, which prevents questions from being missed. This reduces the frustration of disconnected or slow replies that are common in support services, and contributes to increased confidence in the company. The same effect can be achieved at the internal help desk.

    Since customers can easily consult with the help desk, it is possible to surface the previously overlooked and insignificant inquiries, and to keep data on the opinions of a minority of customers. It will also increase the possibility of collecting personal information that is difficult for human operators to extract directly from customers.

    ▶Use in Marketing

    AI chatbots can concretize vague wishes that are latent in conversations, such as "I want to go somewhere," "I want to eat something," or "I want to look for something 00," and make proposals tailored to those wishes. By proposing plans to meet inherent needs, it is possible to turn an inquiry into a project.

    As you can see, AI chatbots can be used in a wide variety of situations. Therefore, it is necessary to determine whether AI chatbots are suitable for your company. In addition, since operability as well as response accuracy is important in operation, it is also important for the person in charge of operation to actually try the product. To confirm the suitability of the product, it is recommended to try it out on a trial basis before full-scale introduction of the service.

    2) How AI chatbots work and their features

    AI chatbots use AI's ability to statistically select answers that are most likely to be correct. It can automatically learn from conversation logs to improve the rate of correct answers and the accuracy of conversations.

    AI chatbots utilize natural language processing (NLP) and machine learning (ML) technologies. AI chatbots utilize natural language processing (NLP) and machine learning (ML) techniques to sift through the results from the AI engine through conversational logic to select the correct answer.

    The structure of an AI chatbot requires prior data learning. To make the conversation more natural, a vast amount of data must be inputted. In addition, it must discover and eliminate erroneous data from time to time in order to sustain appropriate conversations. In the past, problems have occurred when AI chatbots learned incorrect data and developed inappropriate conversations, so post-operational adjustments are critical.

    Background of the birth of AI chatbots

    Advances in AI have also had a significant impact on chatbot development, from the use of open source AI to its relatively low cost and universal availability. The availability of relatively inexpensive, universally accessible AI has brought about a change. Development costs have been contained, and the development of chatbots with advanced functionality, which was previously difficult, has progressed.

    The major catalyst for the spread of AI chatbots was the introduction of Siri and IBM Watson in 2011. Furthermore, in 2016, Microsoft, Facebook, and Google announced services and products for chatbots at events.

    In 2017, Amazon (Amazon Echo), Google (Google Home), and other smart began selling speakers. Since then, AI chatbots have made their way into ordinary homes.

    The rapid penetration of AI chatbots is due to social challenges. Chronic staffing shortages, further concerns about the declining labor force due to falling birthrates, and an aging demographic structure and increase in the number of people living alone. In addition, the fragmentation and sophistication of customer needs and demands in the marketplace and the need for companies to improve their operational efficiency. There is an urgent need to use the power of new technologies to solve these numerous issues that did not exist in the past.

    One solution is AI-powered chatbots, which are expected to expand the range of areas that can be solved by AI-powered chatbots.

    To introduce AI chatbots

    The following preparations are required to implement AI chatbots in a real business environment.

    ▶Details of the business you want to apply AI chatbots

    We will identify and analyze your company's issues and current situation, and consider what can be gained from AI chatbots.

    ▶Choosing a Platform

    We will choose a platform to introduce AI chatbots. Generally, there are "websites," "SNS," "applications," etc.

    ▶Budget and plan for the chatbot you want to introduce

    We will formulate a plan for the introduction timing and cost.

    ▶Documents for running a guided AI chatbot

    We will prepare data such as FAQs and unique dictionaries, assumed queries, industry and internal terminology, and documents that show synonyms and paraphrased expressions, according to your company's business.

    ▶Appointment of a person in charge of the AI chatbot

    We will select an employee who will play a central role in its operation and management, based on his/her skills and abilities.

    AI chatbots improve business efficiency through natural conversation

    AI chatbots, which add automatic thinking through AI machine learning to chatbots, contribute to resolving various inquiries and questions through more natural conversations. AI chatbots can help solve problems in a variety of corporate situations, such as when inquiry operations are slow due to a lack of personnel or when a large burden is placed on internal support desk personnel. When considering the introduction of AI chatbots, it is important to proceed while clearly determining the guidelines in which areas and which tasks can be entrusted to AI chatbots.

    AI chatbots can be used in a wide range of applications. That is why it is necessary to clarify the challenges to be overcome and the desired effects. Also, as we mentioned in the article, in order to effectively utilize AI chatbots, materials such as FAQs and a glossary of industry and internal terminology must be properly prepared.

    Trials are effective for identifying them. Please contact us from " Chatbot Inquiry " for the trial of AI chatbot "HUE Chatbot".
    We also have introductory materials for your reference.

     Click here to consult with us about Chatbot and request a proposal.

    Click here to consult with us about Chatbot and request a proposal.

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