INNOVATION & TECHNOLOGY
INNOVATION & TECHNOLOGY
or perform simple tasks. Essentially
they are computer programs that you
can chat with to achieve a result.
Apple’s virtual assistant Siri is probably
the best well-known example of a
mainstream chatbot.
Traditionally, AI programs have had a
lot of hype associated with them and
expectations always exceeded delivered
capability. As a result, mainstream AI
was ignored for many years and only
left to the technically competent
‘boffins’ to pursue.
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Chatbots are appearing more frequently online, but are they an
annoying fad or a strategic opportunity in disguise?
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$19.95 incl. GST. Issue 65, January, 2017
As featured in
The CEO Magazine
WORDS
AJ KULATUNGA
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“S
oooo bored!” exclaims my new match on Tinder. “Have
you tried pulling the fire alarm?” I suggest. “Soooo
bored!” she repeats without acknowledging my
response. I suddenly realise that like millions of other
poor saps around the globe, I have just matched with a
chatbot. Time to revisit the arranged marriage option. Then again, with
my luck I’ll probably get matched with a bot for that too.
WHAT ARE CHATBOTS AND HOW DO THEY WORK?
Chatbots are Artificial Intelligence (AI) software programs that are
designed to simulate human conversation. In basic form, they take
written or spoken text and match it with the program’s database in
order to provide an intelligent response and engage in conversation
And pursue it they did, through the
ImageNet Challenge. The competition
tests AI capability, where a computer is
assessed on its ability to recognise and
label images accordingly.
The closest a computer got in 2010 was
72 per cent, compared with a human
score of 95 per cent. Then in 2012 a
computer managed 85 per cent by using
an AI process called ‘Deep Learning’.
Finally, in 2015 the accuracy went up to
96 per cent when a computer beat a
human. The results showed the world
what AI was capable of and suddenly
people started paying attention.
WHY ARE CHATBOTS IMPORTANT?
A recent study from BI Intelligence
reveals that the use of messaging apps
has surpassed the use of social
networks. This means more people are
having conversations rather than
spending time broadcasting and
consuming information on social
networks. Remember, attention is the
most coveted asset online, so those who
invest in appearing where their
customers already are will be miles
ahead of those who try to attract them
to new platforms like apps.
The Chinese application WeChat is a
great example of this. Outside of China
the value proposition is negligible,
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Attention is the most coveted asset online, so those who invest in
appearing where their customers already are will be miles ahead of
those who try to attract them to new platforms like apps.
however within China, given its strict
rules and regulations, WeChat is
essential to daily existence. Locals in
China use the app to shop, order
transport through Didi Chuxing
(the local equivalent of Uber) and
even book travel. This is known as
‘conversational consumerism’ and
presents an incredible opportunity
for switched-on brands to leverage
the concept.
Digibank in India is another example of
taking chatbots to the next level. The
bank is staffed entirely by highly
intelligent chatbots capable of allowing
customers to perform banking services
and responding to customer service
inquiries. Digibank is powered by the
KAI artificial intelligence platform
made by Kasisto, the same company
responsible for Siri.
WHAT COULD GO WRONG
WITH BOTS?
Earlier this year, Microsoft introduced
‘Tay’, a bot designed to engage with
Twitter users to learn the secret
language of millennials. Unfortunately
the bot was exposed to undesirable
influences and ended up learning
nasty phrases that transformed it into
an anti-feminist who actively
supported Nazism. Microsoft soon shut
down the project. It seems that, who
your bot learns from is quite important
in the grand scheme of things.
The other issue to think about is
transparency. I hate thinking I’m talking
to a human when it’s a bot instead.
If there was a notification upfront that
the person on the other end is a bot,
then that would make authenticity a
lot easier. Remember, trust is still the
number one currency of the new
social economy that we live in and
despite clever technology, you still
have to respect people.
WHAT IS THE FUTURE
OF CHATBOTS?
The future is quite promising for
chatbots, as smart companies will
begin investing in communicating
their value propositions through
messaging apps. With advances in AI
every day this means better quality
conversations that create additional
customer journeys.
There is plenty of information
available online on how to set
up your own bot, but successful
implementation really comes down
to two questions:
1. Where can a conversation add
real, tangible value to the
customer experience?
2. How can we train the bot to ensure
it provides the best customer
experience possible?
Answer these two questions correctly
and you will win the hearts, minds
and wallets of your customers. In this
highly competitive environment, can
you afford not to?
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