Conversational AI: Indispensable way to attract and retain customers

Abstract

Conversational AI is a technology that allows artificial intelligence (AI) systems such as Chatbots to engage with people in a human like manner. It enables communication between humans and computers easy and natural by bridging the gap between human and computer language. Recent industry reports indicate that more than 80% of all businesses are considering integrating chatbots within the next five years. Many service providers are already using chatbots, but most applications have focused on cost saving and automation to partially replace human service encounters. However, little is known about the mechanisms and the process of value co-creation enabled by AI. While scholars agree that AI technology significantly changes human activities and human resources, currently we do not have an adequate understanding of how humans and AI technology interact in value co-creation. Thus, the study was conducted to understand the interface between AI and customers, and to analyze the various factors which play pivotal role in better customer satisfaction. Therefore to do this, we used exploratory factor analysis by taking in 11 variables which could possible made an impact on the customers. We devised a structured questionnaire from those 11 variables and responses were taken in 5 point scales. Out of the responses we were able to analyse underlying constructs and analyse the factors which contributes to this cause.