In today’s fast evolving world, one technology is making a resounding statement: generative AI. A recent analysis by Bloomberg Intelligence predicts that enterprise investments in consumer-facing generative AI tools will skyrocket from $40 billion in 2023 to an astounding $1.3 trillion by 2032.
The burning question on everyone’s mind is, “Where will this colossal sum be invested?” Surprisingly, more than 80% of business leaders have a clear answer. According to a survey conducted by Capgemini across 13 countries, they believe that the most promising return on their generative AI investments lies in chatbots.
These digital assistants are set to revolutionize customer service and knowledge management. While chatbots have been part of our daily lives since Siri’s debut in 2011, they have often left customers frustrated with their clumsy responses and awkward phrasing.
Despite improvements in technology for understanding and analyzing human language and emotions, a Zendesk CX Trends report from 2022 found that 3 out of 5 consumers were still frequently unsatisfied with their interactions with chatbots.
However, there is hope for change through generative AI. In November 2022, when ChatGPT was introduced, 100 million users experienced the potential of chatbots powered by large language models. These chatbots can quickly process a lot of information, provide intelligent responses in context, and communicate in a way that feels natural, much like human conversation.
This advancement has the potential to revolutionize customer and employee experiences across various industries. Currently, over 1.4 billion people, including more than 60% of Millennials, use chatbots, and this number continues to grow.
It’s worth noting that you might already be using chatbots without realizing it—Siri and Alexa are essentially advanced chatbots designed for entertainment and personal assistance.
In the following sections, we will explore how chatbots are being used in different industries. You can discover how to make the most of chatbot technology in your own industry.
Chatbot Technology in Healthcare
Physician billing can be costly, but healthcare facilities must find a balance between managing expenses and ensuring patients receive quality one-on-one time with their doctors. The use of chatbots in the medical field can be a valuable solution.
Chatbots can handle various tasks, such as appointment scheduling and addressing simple, repetitive inquiries, without consuming excessive time or leading to overcharging patients.
In 2022, the global market for healthcare chatbots was valued at $212 million. It is projected to grow significantly, reaching $647 million by 2030, as indicated by Vantage Market Research. This growth can be attributed to chatbots being utilized in both patient-facing interactions and behind-the-scenes administrative operations.
According to reports from Insider Intelligence, AI-powered digital assistants could automate up to 73% of tasks for administrative staff in healthcare facilities, contributing to this growth. In direct interactions with patients, the next generation of AI-powered chatbots is expected to enhance care for both healthcare providers and patients.
These chatbots are already delivering real-time responses to patient enquiries, offering guidance on diagnoses, treatment options, and medications based on the latest medical research, and streamlining the documentation of health records. This efficiency allows doctors and nurses to have more time to dedicate to patient care.
Generative AI-powered Chatbot in Banking
Similar to healthcare, the banking sector is on track to significantly increase its investment in chatbots by 2030. According to Verified Market Research, this investment is expected to nearly triple, rising from $2.45 billion in 2022 to $6.9 billion. Already, banking customers are increasingly incorporating chatbots into their daily transactions.
Research by Bain & Company shows that from 2021 to 2022, the number of U.S. banking customers using chatbots for online interactions related to checking and savings accounts doubled.
With the integration of generative AI, banking chatbots will not only engage in more natural conversations but will also be able to access and analyze data and insights more rapidly. McKinsey predicts that the primary value of next-generation chatbots in the banking sector will be in responding to customer emergencies. They will partially automate, expedite, and enhance the resolution of customer crises, such as dealing with lost cards and stolen identities.
Furthermore, there are several other promising applications for generative AI-powered banking chatbots. These include guiding customers through the process of applying for loans, suggesting new financial products, providing advice on mortgage and debt repayment, and assisting credit analysts by offering recommendations for loan underwriting.
Generative AI Technology in Retail
In 2023, consumers worldwide are already spending a substantial $12 billion on retail transactions through chatbots. However, Juniper Research anticipates a massive surge, projecting that customers will be spending a remarkable $72 billion using retail chatbots by 2028, marking a fivefold increase in just five years.
There is a drawback, though. When customers encounter issues with their purchases, only 25% of them feel understood by traditional retail chatbots online, according to a recent Capterra survey. In contrast, when interacting with ChatGPT, a significant 67% of consumers feel understood, as revealed by the same survey. When you connect the dots, it becomes evident that generative AI has the potential to revolutionize the retail chatbot experience on a significant scale.
McKinsey’s analysis estimates that the value of tailored shopping interactions and personalized marketing outreach in the retail sector could range from $400 billion to $660 billion annually. Generative AI chatbots in retail have the ability to enhance customer engagement through conversations that feel human-like. These chatbots, armed with insights from customer behaviour and market trends, can offer personalized product recommendations to encourage cross-selling and upselling.
Retailers are already exploring the possibilities of using generative AI for improved customer engagement. For example, online retailer Stitch Fix is employing Dall-E 2’s text-to-image capability to visualize a customer’s desired clothing item. This technology translates text descriptions into matching items from Stitch Fix’s inventory, allowing customization of color, fabric, and style to meet each customer’s preferences.
Enhancing Insurance Industry with AI Technology
In 2022, the global insurance industry invested $467 million in chatbot technology. According to Allied Market Research, this investment is expected to soar to $4.5 billion by 2032. This substantial growth is not surprising, especially when you consider the remarkable annual value that generative AI is set to contribute to the insurance sector: a staggering $1.1 trillion, as estimated by McKinsey.
Within that astounding figure, McKinsey predicts that insurers stand to gain $300 billion through the use of customer service chatbots and personalized product offerings.
However, there’s a significant challenge to overcome. Recent data from a Duck Creek Technologies survey in May 2023 reveals that 44% of policyholders still prefer speaking with a human when discussing insurance claims. Even more concerning, this preference has increased by nearly 10% compared to 2022.
In response, insurance companies are turning to generative AI to infuse a human touch into their customer service. According to a survey by Aite Novarica, 23% of insurers are currently testing new chatbot technologies, and 20% have already deployed them, especially since the introduction of ChatGPT.
Elevating Foodtech with Chatbot Technology
The food technology industry is undeniably one of the most demanding sectors globally. It operates with some of the fastest-moving products (SKUs) that have extremely short shelf lives and require high-stakes support. To meet its unique challenges and achieve scalability, the food technology sector relies on cutting-edge technology.
Moreover, there was a remarkable uptick in the demand for food delivery services over the past year. This surge in demand has attracted substantial investments from both domestic and international investors, totaling an impressive $10.8 billion.
In a Nutshell
Generative AI technology investment is teeming with potential. From enhancing customer service in businesses to streamlining e-commerce experiences, and even revolutionizing education, chatbots offer a versatile toolkit for industries of all kinds. Their adaptability and groundbreaking capabilities are reshaping the way we interact with technology and each other.
As we stand at the cusp of a $1.3 trillion generative AI revolution, it’s clear that chatbots are here to stay and will continue to play an important role in shaping the future of industries.