Written by, Sandeep Kumar
Updated June, 5, 2021
Most websites are putting into use chatbots now more than ever before.
I’m sure you’ve noticed that most websites are putting into use chatbots now more than ever before.
This is why it is time to end the many questions you have concerning chatbots in general. Questions like how are chatbots helping us and the economy, or are customer care representatives getting replaced by chatbots for good, etc.
Before we get into more details, let me give you an overall view of what will be elaborated on in this article. In other words, this article’s focus is on chatbots, the trends among them, numbers: how many companies are using chatbots nowadays, how chatbots are implemented into the customer service and business communication world, and lots more.
According to research by Insider Intelligence, retail spend using chatbots is expected to hit $142 billion by 2024. There are many applications of chatbots, so in the following lines, we will find out just how valuable these chatbots are within the business context.
This section of the article is dedicated to some of the chatbot trends out here that you should be aware of, especially if you plan to harness the power of chatbots for your own business.
Sources: Invespcro, Medium, REVE Chat, linchpin SEO, Intellectyx
Artificial Intelligence or AI has proven to be a vital element in the business sector, even more now in 2021.
Let us rely on Intellectyx’s information that chatbots worldwide will drive business communication by the year 2024, with a market size of around $1.3 bn.
The most recent analysis on the business market indicated that almost 90% of small businesses, enterprises as well, are accepting the digital-first business strategy. This is also the year when the chatbot implementation is predicted to be spread in more than 80% of businesses across the world.
Furthermore, by answering up to 80% of routine questions, chatbots automate the communication process. Thus, allowing companies to save on their customer service costs by rushing the response times and giving your in-house agents more free time to focus on more challenging tasks.
Sources: HubSpot, Sprout Social
As already mentioned, chatbots are becoming more common in businesses, and it’s easy to see why. Industries such as healthcare, education, real estate, banking, and healthcare have all benefited from chatbots.
The latest study by HubSpot stated that around 50% of consumers wouldn’t mind communicating with a business via messaging apps and chatbots. Why would they? After all, chatbots are at your disposal 24 hours, every day, and the response waiting time is reduced to the minimum.
Take a look at the following chatbot stats that support the growth businesses are receiving by incorporating them in their daily business interaction:
Sources: Invespcro, Acquire, HappyFox, SmallBiz Genius
Chatbots have the advantage of taking on an unlimited amount of customer queries all at once. On the contrary, a human customer support executive can only tend to one customer at a time.
Therefore, recent reports back up this statement by indicating that chatbots saved aside from up to 30-50 percent of the company’s costs related to customer service. Further data revealed more than a billion people worldwide are taking advantage of chatbots, and over 30 percent of them are drawn to chatbots because of their quick-to-react interaction.
Sources: Medium, Singularika, Acquire
By adding a price and a ‘buy button, a chatbot can be programmed to accept payments, as simple as that.
For example, Telegram chatbots payments are very popular and available in over two hundred countries. This has proven to be a quick and efficient way to allow customers to get their payments processed without having them wait for too long. In addition to this IBM’s report comes in handy—it revealed over 55 percent of their customers use chatbots options when deciding what’s the best plan for them. On the other hand, 77 percent use this option to pay their bills.
Or let’s look at the chatbots practical usage in the Insurance branch:
These are just a tiny portion of the many excellent examples that gladly take advantage of the chatbot’s effectiveness and speed.
Sources: V-Soft Consulting, AI Business
What gives chatbots an edge in maintaining a one-to-one relationship with potential candidates and carrying out follow-ups without being told.
A study on AI chatbots unveils that over 90% of HR teams agree chatbots will be incredibly important for going forward—when it comes to directing employees and helping them find the information they’re looking for.
Consequently, two-thirds of the respondents declared their employees are comfortable while using chatbots, which comes in handy while conducting their daily tasks.
In addition to those mentioned above, a Jacob Morgan research on employee’s experience stated that companies who invest more in their employees also appear almost thirty times more than others on the Fast Company’s List.
Sources: TalentLyft, Glassdoor
Following numerous research on today’s employee onboarding, it is estimated that more than 70 percent of Millenials (worldwide) occupy the future workforce.
A research carried out by Glassdoor indicated how every new job opening attracts an average of no less than 250 resumes. That’s a significant number for an in-house HR team to handle. Therefore, chatbots provide a unique way to streamline the entire process—from employee recruitment to employee onboarding. Over 55 percent of job-seekers felt comfortable interacting with chatbots during the recruitment and employee onboarding process. This is opposed to slightly over 40 percent of potential employees who preferred a live person to guide them through the recruitment process.
Sources: IBM Watson Blog, The Financial Express
Chatbots are great for helping new employees find information on various topics, such as answering queries related to policies, annual leaves, government holidays, tax benefits, and payroll.
As we mentioned in one of the previous sections, chatbots can help save time by handling as many as 80 percent of the most frequently asked questions within a matter of minutes.
For instance, let’s have a look at the results Autodesk (empowered by The Watson Conversation platform) gained on productivity and efficiency:
Sources: Marketing Dive
According to some estimates, chatbots are expected to drive retail sales to a whopping $112 billion by 2023. That means an increase of 2x more, from around $7.5 in 2021. Further data also indicates a jump in chatbot interactions to more than 20 bn by 2023. That itself is off the charts since this year is expected to hit only 2.6 bn.
However, the good news doesn’t stop there either. Retailers are expected to enjoy cost cuts of up to $439 bn by the same time. Compared to the seven million dollars for 2021.
Sources: Linked in/Artificial Solutions, MarketsandMarkets
As per Markets and Markets, the global market size for conversational AI is predicted to reach around $16 bn by 2024, at a Compound Annual Growth Rate (CAGR) of 30 percent. Whereas the size of the same was a bit over four bn in 2019.
However, an essential piece of information is the mere fact that artificial intelligence as such is reckoned to redefine what we knew to be a user interface until now. Hence, more than half (fifty percent) of user touches will be extended by speech, language, and computer vision.
Source: SmallBizGenius, Salesforce, verloop.io
The implementation of chatbots in service organizations worldwide is at a constant but high-speed pace, no doubt.
Statistics on customer service and chatbots revealed over 50 percent of service organizations have intentions of using chatbots for customer service in their businesses in the following eighteen months. This data implicates an astonishing 136 percent increase in the rate that augurs quite a role in the sphere of technology (looking into the near future).
Another very important reason why chatbots are a perfect addition to the customer service department is instant assistance. In other words, statistics showed almost 65 percent of customer agents who work with chatbots to be more successful at their work. These agents have time to dedicate to more complicated work-related problems. On the contrary, around 50 percent of agents can’t say the same about themselves (those working without chatbots).
Sources: Boomtown, BACKLINKO, AI Multiple
Chatbots are to be found (almost) everywhere: from ordering food online to listening to your favorite music. Most probably, you’ve come across a chatbot by now while using various online services. B2B and B2C businesses are the ones who take the biggest advantage of chatbots overall. Also, companies that employ fewer than 250 people usually make use of chatbots. On the other hand, 40 percent of companies whose number of staff ranges from one to ten employees aren’t using chatbots as frequently.
With that being said, let us have a look at the fifteen biggest sellers for avant-garde solutions:
A new feature is always greeted with some dose of doubt or with an exciting smile.
Fortunately, the chatbot services were greeted with a smile from nearly 60% of users—whose chatbot experience went beyond what they were expecting to get.
By the look of things, this number is only expected to grow.
Sources: Invespcro, Live Person
The latest reports on chatbot usage as a support system denoted the following data:
Sources: Invespcro, Arabot, Experience Matters
Most companies are quick to replace humans with chatbots for the mere reason that the latter can perform their tasks 24/7, 365 days a year.
On the other side, a somewhat recent survey on chatbots usage and channels (2019), indicated the following:
Sources: Help Scout, Quick Sprout, Business Wire
Even though both support systems are efficient and work to meet customers’ needs, there’s still a certain disbalance in preference. Therefore, let us take a better look at both sides, thus make a comparison:
Among the majority of things, people feel uncomfortable using chatbots for the following matters:
Sources: Comm100, Retail Dive, Forbes
Millennials are considered to be more accepting of chatbots for online shopping or finding out information they need.
For that matter, Forbes reports 60 percent of Millennials have had the chance to use chatbots’ assistance so far. That being said, another Forbes report declared 70 percent of them acquired positive chatbot experiences.
Further data also revealed that Millennials’ preferences for chatbot usage are well-integrated in the food ordering feature, with Millennials occupying over 30 percent.
Chatbot’s presence and implementation are primarily seen in IT companies. In addition to that, chatbots can often be found in B2B industries, opposed to the notable number of sites that are using B2C. And with this being said, also worthy of mention is the fact the United States has the leading role when speaking of chatbot acceptance.
For instance, let’s take companies with no more than 250 employees. These companies tend to use chatbots much more than, let’s say, companies with barely 10 employees. Consequently, companies whose employee numbers range between one and ten occupy around 40% of the total number of companies using chatbots (worldwide).
On the contrary, the number of B2B sites that use a chatbot makes up barely 1 percent.
Sources: SmallBizGenius, MediaRoom, Sharpen, L.inchpin
According to a report, nearly 40 percent of major companies have plans to integrate chatbots into their business.
Hence, a Temkin Group study on customer preferences came to an incredible revelation. The revelation pointed to large businesses having a revenue Increase of more than $820 million in the next three years with the sole integration of chatbots into their current business model—this is closely connected with businesses that have reached a minimum of $1 billion in yearly revenue.
Furthermore, almost 40 percent of companies are already using pre-built AI chatbots. For example, research carried out by IBM pointed to almost 40 percent of companies in China, the USA, and the European Union (the UK, France, Germany, Italy, and Spain), are all using AI programs that are pre-built, including virtual assistants and chatbots.
Source: The Official Microsoft Blog, inside BIGDATA, HealthTech
The coronavirus did lead many enterprises (small, big) to incorporate AI chatbot usage fully. Especially since we don’t have a timeframe when this virus is set to leave us alone.
The COVID19 pandemic is giving a significant boost to AI— this is more than understandable since chatbots handling people’s inquiries worldwide have climbed up to more than two hundred percent in particular industries.
For instance, during the coronavirus pandemic, Microsoft’s Healthcare Bot was being used by multiple American companies to respond to their clients—the chatbot so far responded to over 1 million inquiries.
Further data showed IBM marked an increase of 40 percent in the Watson Assistant cloud service from February-April (2020). On the other hand, Google also stepped up with the Rapid Response Virtual Agent (similar to a Contact Center AI).
Sources: BACKLINKO, Chatbots Magazine
Thirty-three percent of consumers would love it if they could manage hotel/restaurant bookings through a chatbot.
Chatbots are the new kind of digital menus and waiters for people ordering from restaurants. These chatbots go as far as recommending you a wine list that goes alongside your food order.
Pizza ordering has never been manageable also. Nowadays, you can place an order by simply sending an emoji.
Sources: 99firms, Juniper Research, Chatbots.Studio
Statistics show that more than 70% of accessible chatbots will be related to retail by 2023. This number is likely to increase further in the coming years, fueled by the growing demand for online retailing.
Therefore, to maintain this statement, here’s a list of how chatbot is being implemented in the retail industry:
Sources: Chatbots Magazine, Scand, LIGHT, Medium
Automation, and more specifically, AI-powered chatbots, are the future for the banking industry. In fact, according to reports, banks can save up to 30% on customer support costs.
In addition to the above said, a Salesforce report unveiled the following:
Furthermore, by 2023 it is estimated to successfully carried out chatbot interactions via mobile banking apps to hit an incredible 79 percent.
In addition to this, here are some of the banks that have implemented and enjoy the incomparable assistance by chatbots:
Let’s talk statistics:
Sources: 99firms, Haptik
No industry has benefited more from chatbots than eCommerce. And with this being said, we ought to take Juniper’s prediction of chatbots retail transactions reaching a massive USD112 bn dollars by the not far away 2023. Whereas another set of analyses estimate the global chatbot market share will be worth almost USD10 bn dollars by 2024.
The following is a quick breakdown of the chatbot revenue being generated in the business space.
Sources: DataDrivenInvestor, Spice Works
According to new research by Juniper, chatbots are set to provide businesses help and save more than $8 bn a year (by 2022).
A mere example of how the above-mentioned achievable is what JPMorgan Chase and Co have done. This prominent financial company produced a bot equipped with challenging and complex analyses (legal analyses). Nonetheless, this very same bot made the impossible – possible. How? By doing work well worthy of more than 350.000 hours within seconds.
Apart from solving legal matters, chatbots are also pretty handy when pursuing administrative tasks. It’s no wonder why more than 20 percent of companies fully implement them around the office.
Sources: IBM, Comm100, Public Tableau, Cognizant
Many businesses are already experiencing the benefits of using chatbots for their business. Following current reports, businesses worldwide are more prosperous for twenty million dollars nowadays, and they owe this to none other but the chatbot’s invention. And it’s a number bound to rise.
Anyway, let us look better into some of the cost-saving chatbots are responsible for:
With the high level of efficiency and maintenance-free solution chatbots provide, it is easy to see why more and more business owners turn towards chatbots as a more viable alternative than traditional human staff.
The following is a quick breakdown of the industry’s stats for 2019 chatbots related to customer service.
Source: AI Multiple
The following are just some of the main advantages for businesses that want to integrate chatbots into their business and marketing strategy:
Sources: Business Wire, PR Newswire
The global chatbot market is expected to reach more than USD10 bn by 2026. This alone is reason enough for businesses to adopt a strategy that implements chatbots to deal with customers.
With the limitations surrounding humans being used as customer support staff, more and more companies worldwide use chatbots as a more efficient and cost-effective alternative to human customer service personnel.
Countries like America, the United Kingdom, Germany, Brazil, and India are currently at the forefront of using chatbots.
It is easy to conclude the obvious—The chatbot and the use and advance of Artificial Intelligence are a step further into the future. It is such an invention that creeps into every segment of the business world and positively impacts all sorts of industries (globally).
I am sure that I have managed to provide valuable and interesting data to you, like how many companies are using chatbots nowadays, the benefits of using them, etc. Now you know more about chatbots (and I am sure you have been using one at some point). And as for the smaller and bigger companies, I highly recommend you to go ahead and take advantage of this futuristic yet present software.