Challenges of AI and How Chatbots Overcome Them

January 30, 2019

Conversational Messaging

Thanks to Artificial Intelligence (AI), chatbots are more lifelike than ever. Natural Language Processing makes it difficult to distinguish a chatbot from a human. These advances are helping chatbots provide real value. But, chatbots are not immune to the challenges of AI.

The challenges of Artificial Intelligence can be complex. Yet, businesses that take a proactive approach to the technological and ethical questions have much to gain. Early adopters are in a better position to realize the true potential of the technology. Those that come later will fight to keep up.

Let’s take a look at the common challenges of AI, how they apply to chatbots, and how to avoid them.

The Cost of Artificial Intelligence

AI development has a price tag. Though, the benefits of AI usually outweigh the costs. Many companies use AI for lead generation and customer service, which ultimately drives revenue. As with most investments, considering the potential ROI is key.

It’s not hard to forecast the financial gains of chatbot technology. Chatbots drastically reduce operational expenses over time. Some businesses see chatbots handling up to 80% of their customer inquiries. But beyond reducing expenses, chatbots also drive revenue by increasing sales. The increased quality of customer service also results in better customer retention. This, again, means more revenue.

Some businesses see chatbots handling up to 80% of their customer inquiries.

Although there are initial costs to creating a bot, there are platforms that make building a chatbot easier for developers. These tools save time and money. They can even integrate AI software or build media-rich conversation extensions. Using Hubtype’s platform, you can customize chatbots that create incredible value.

Data acquisition and storage issues

Data collection and storage is at the core of AI technology. Through AI algorithms and computing power, it responds to future questions. This makes data handling and storage concerns especially relevant to AI.

This is a key challenge for chatbots. As chatbots get smarter, they’re trusted with more sensitive information. Chatbots service the financial, healthcare, travel, and other industries where customer care contains sensitive data. It’s important to address where this information is being stored, what it’s used for and who can access it.

Aside from the privacy issue, there’s also the challenge of data acquisition. Developers need a large amount of data to design and build the basic rules of bot operation. The more you want your bot to do, the more data it will need.

Partnering with chatbot experts helps to navigate privacy and data issues. They’ll also use data from beta users to speed up the machine learning process. Companies like Hubtype are familiar with General Data Protection Regulations (GDPR) and the data challenges facing the chatbot industry.

AI changes the scope of human jobs

Another challenge of Artificial Intelligence is the changing scope of human jobs. After automation, you’ll need staff that understand the technology and how to apply it. Also, some structural changes will be necessary. A good practice is to create cross-functional management teams to review and refine processes.

The bot/human hand-off is important for chatbots. Chatbots automate repetitive customer service tasks, passing off complex conversations to a human. This transition should be smooth and seamless for the customer.

For the customer service team, optimizing this transition is highly beneficial. It allows human agents to focus on higher value, more rewarding conversations. Because of this, companies that use chatbots actually see an increase in employee satisfaction.

The ethical challenge of Artificial Intelligence

One of the most common challenges of Artificial Intelligence is actually an ethical one. Many companies fear that AI will put their employees out of jobs. They recognize the need to keep up with technology but struggle with the thought of firing loyal employees. But, as we touched on before, chatbots actually help with employee retention.

Chatbot technology has the most success when the focus is on augmenting people, not replacing them. Businesses should think about how AI supports processes and fills service gaps.

When implemented properly, chatbots:

  • increase accuracy and brand consistency across channels
  • enhance customer experiences
  • decreases repetition in customer service
  • make customer service jobs more rewarding

Turning the challenge of AI into opportunity

While many companies are enjoying the benefits of chatbots, others are stuck on the challenges of AI. Companies that invest in a chatbot profit from being early adopters. They’ll be able to start small with their chatbot strategy, tackling specific use cases and expanding at a manageable pace.

Ready to build your own conversational chatbot? If you’re a developer, start using our platform now or alternatively, contact us for more information.