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Artificial intelligence, commonly referred to as AI, is a branch of computer science related to building intelligent machines capable of performing tasks that would otherwise require human intelligence. Technology has been on an upward trajectory with the potential for India’s technology services industry to reach $300-350 billion in annual revenue by 2025, if it can harness the rapidly emerging business potential in the cloud, the AI, cybersecurity and other emerging technologies, according to a McKinsey report.
AI is not limited to the world of science fiction. As a technology, AI-powered chatbots are revolutionizing business processes across many industries, while impacting multiple aspects of people’s lives. Various markets are embracing AI to be smart in today’s always-on world. Humans aren’t the only ones wooing buyers and providing after-sales service in modern commerce. AI-backed chatbots are becoming ubiquitous. Human psychological attributes are used to program realistic chatbots that align with the human empathy spectrum. Futuristic chatbots can provide expert customer support and effectively market products. Human behavioral imprints are used to evolve artificial chatbots and machine learning modalities enable chatbots to exhibit almost human-level interaction.
“We believe that while technology is being upgraded, even with the current technology stack and models, a lot can be achieved. The majority is not about ‘what’s available’ but ‘how to use it’. At Rezo. ai , we have a healthy split between first-level queries, complex use cases as well as end-to-end resolutions. A big catalyst for us has been our focus on data engineering and not just modeling Our USP is how we use data, KPIs we review, and business insights we generate,” said Rashi Gupta, co-founder of Rezo.ai.
The global chatbot market size was valued at USD 525.7 million in 2021 and is projected to grow at a compound annual growth rate of 25.7% from 2022 to 2030. The market is expected to be driven by increasing adoption of customer service activities by companies to reduce operating costs, according to several analysts.
The impact of 5G
Prime Minister Narendra Modi gave the green light to the advent of 5G in early October. Reliance Jio and Bharti Airtel would soon make the next-generation telecommunications service available in four towns and eight cities, respectively. 5G would not only affect network coverage area or high-speed internet, but also conversational AI.
5G would enable widespread access to video content allowing brands to engage with users in a more interactive way. It would also provide the bandwidth needed for metaverse success while spreading the adoption of human-like 3D digital avatars, enabling immersive customer experiences, from shopping to gaming to virtual learning. Conversational AI-powered digital avatars would act as personal shopping assistants or stylists for customers, helping them through a quick and seamless virtual shopping journey, due to 5G’s lower latency. The technology would also give way to greater penetration of augmented reality and virtual reality, which can enable providers to connect with customers and deliver immersive experiences.
“5G will accelerate the pace of digitization, contributing significantly to service and product innovation across all industries. It will be a game-changer by creating enhanced user experiences across all industries, from immersive mobile gaming to photorealistic virtual trial to increased adoption of applications such as contactless payments and mobile wallets.Customer expectations for accessibility, personalization and faster resolutions will only increase with the continued rollout of 5G,” said Rashid Khan, CPO and co-founder of Yellow.ai.
There have been new developments in space. However, people want to turn away from IVRs and chatbots in an attempt to find alternatives. Industry-wide popular opinion is a strong testament to the failure of technology to meet market expectations. The core problem statement is still fundamentally strong: people love personalization. There has been a shift in the perception of conversational AI not just as a way to cut costs, but more as an engine for growth.
“This popular opinion has become fashionable because things keep changing and so is technology. 2-3 years ago chatbots were all the rage and IVRs were the fastest way to innovative way to handle phone queries. When people adapt to a hectic life, where they want their queries answered instantly, businesses need proactive measures to approach their customers due to neck and neck competition,” said Sarvagya Mishra, co-founder of Superbot.
SLU, NLP and ASR are technologies and are bound to evolve continuously as they form the backbone of conversational AI. Technologies need to be upgraded to upgrade conversational AI agents. The technology is provided by a third party and upgrading it is a never-ending process, helping to get the most out of the technology.
About 88% of Indian companies plan to increase their investment in artificial intelligence in 2022 compared to last year, according to a Deloitte survey.
“The applications and potential value added with SLU, NLP and ASR are increasing. Existing applications will be upgraded, but the main difference will be new opportunities that will arise based on upgraded capabilities that will solve more difficult problems and provide faster results.” said Nikhil Gupta, co-founder of LimeChat.
Chatbots are impacting all industries and operational areas, from optimizing manufacturing operations to inventory and supply chain management. The greatest impact was made in the customer service segment, which conversational AI has completely transformed. Technological development is driving the industry in a new direction and new use cases. Conversational AI has transformed modern commerce and with the onset of 5G, conversational AI would explore new avenues.
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