You’ve heard it over and over again: customers want nothing more than a high-quality customer service experience.
In fact, they crave it.
Did you know that 1 in 3 customers will leave a brand they love after just one bad experience? 92% would completely abandon a company after two or three negative interactions. It’s clear that customers are only going to stick around if they can get their needs met efficiently and in a timely manner.
What tool to best help meet those needs?
Conversational AI refers to the process that enables intelligent conversation between machines and people. Conversational AI is a step above a traditional chatbot. It uses machine learning, natural language processing, and natural language understanding to understand the intent and sentiment behind a customer query. Conversational AI learns from company data and removes the need for manual configuration with if/then decision trees.
In this article we want to highlight some of the latest conversational AI statistics and the impact they’re having on customer support.
Conversational AI Market Growth
The use of AI is projected to grow substantially in the coming years. The global use of chatbots within banking, financial services, and insurance markets was valued at ~586M in 2019 and is expected to reach ~7B by 2030.
If you’re wondering what type of world AI will lead us into, think of this–by 2025 more than 95% of customer interactions will be taken over by artificial intelligence.
Conversational AI uses state-of-the-art speech recognition and cognitive response systems to offer natural conversations between humans and computer systems. It can be integrated into a multitude of customer service capabilities we have today including:
- Mobile Apps
- Social Media
Through these advancement, we’ve been able to transform customer support and help meet customer needs even better than before.
Meeting Customer Needs
According to Juniper Research, e-commerce sales have risen 44% from 2019 to the end of 2021. Many of these sales have been conducted online, often with the assistance of some kind of digital or virtual assistant. As AI adoption grows, so do customer expectations.
In fact, over 60% of eCommerce shoppers will leave a site if they can’t quickly find what they’re looking for or access help. For this reason, Juniper predicts that by next year, 70% of all chatbots accessed will be retail-based.
Meeting customer needs isn’t always easy, especially when over 50% of customers expect a business to be available 24/7 and then get upset when things don’t go their way. It’s important to understand that things aren’t happening as we’d hope, it’s actually the opposite and 54% of customers report companies need to transform how they engage with them.
Chatbots have the power to do a lot for companies, reports say they actually deliver $11B in annual cost savings each year by saving businesses over 2.5 billion customer service hours.
Customer support AI helps meet customer needs and makes it easier for agents to help meet those needs.
AI doesn’t just help your customers, it actually benefits your agents a lot too.
If agents are doing repetitive tasks every day it means there’s room for automation and areas they could be focusing their time and attention on.
Agents also actually agree they should be using AI in their jobs. According to The State of Service Research report prepared by Salesforce, 77% of agents believe that automating routine tasks will help them complete more complex tasks. And with agents spending up to 3 hours every day on easily automatable jobs, it makes sense AI could be used here.
Conversational AI chatbots could make all the difference in automating these tasks and in improving CX. Many times agents are siloed into answering tickets for different topics or products or are split up by time zones or customer tier. Whichever the categorization being used, support orgs can’t always have every agent ready to respond to every query. This is where conversational AI chatbots can make all the difference.
Plus, by being able to instantly address user questions, conversational AI proves to be instrumental in nurturing potential leads. According to HBR, the likelihood of converting a lead decreases by 400% if their queries are not addressed in under 5 minutes–remove the friction and a chabot can prevent the loss of potential customers.
Another instance where conversational AI helps agent efficiency is in being able to assist in responding to customer questions. 60% of employees report that it is difficult, very difficult, or nearly impossible to obtain information from their colleagues needed to do their job. With AI, this can be done easily because AI can pull up past ticket answers and macros or knowledge base articles to send a customer, making agent work empowering.
Statistics By Industry
Check out these statistics by industry to get a more detailed look into what is driving the AI tech change.
- The need for AI online is stronger than ever; 2021 saw global e-commerce sales reach $4.2 trillion, and 2022 predictions are to surpass $5.5 trillion.
- Conversational AI increases engagement and support and can boost e-commerce sales by 67 percent.
- Improving CX and providing exceptional customer service increases consumers’ brand loyalty and trust by 38 percent.
- AI helps boost sales; 97% of consumers look for deals when they shop —virtual assistants can provide referrals, coupons, discounts, and rewards to loyal customers and boost companies’ loyalty programs.
- AI within education is making a great impact; Georgia Institute of Technology used a chatbot named Jill Watson where “Ms. Watson” was able to answer ~10k messages a semester with a 97% success rate.
- Artificial intelligence in education is being widely adopted, growing at an annual rate of around 48%.
- Students and their parents often visit the website of the educational institution before enrolling in order to learn more about the institution; 69% of customers prefer to use chatbots because of quick answers to simple questions, leaving lasting impressions on users.
- AI and automation could save the travel industry; with the industry being the most impacted one with an estimated loss of $2.4 trillion in 2020.
- Customers want support fast. 83% of customers have a goal to complete a support interaction as quickly and as easily as possible, regardless of whether they do so by talking to an agent or using an automated system; customers are more likely to book trips with companies who offer chatbots.
- Chatbots are useful in the travel industry! 66% of respondents claim they find travel chatbots ‘useful’ when organizing business and leisure travel arrangements.
- Artificial intelligence could disrupt the insurance landscape, InsurTech startups are already presenting use cases and traditional insurance players are being forced to follow suit. A 2015 study conducted by IBM showed that 95% of insurance executives intended to start or continue investing in AI capabilities in the future.
- The disruptive impact of conversational AI in the insurance world is expected to grow exponentially, leading to cost savings to the tune of $1.3 billion by 2023–a steep rise from $300 million a few years ago.
- Every retailer has seen a massive surge in digital interactions over the last 18 months. OnePoll revealed that 58 percent of consumers say they’ll continue to have more digital interactions with brands than before the pandemic.
- By 2023, over 70% of all chatbots accessed will be retail-based.
- Chatbot ecommerce transactions will reach $112 billion annually.
- Speed, convenience, engagement, and automation are the four most important parts of providing great customer experience in our tech-driven world; All possible through conversation AI, a report published by Juniper states that by 2023, retail sales from chatbot communication will double every year.
- 60% of people have engaged with a chatbot in the last 12 months.
- Saas is projected to grow at an annual rate of 18%, making for more interactions as the years progress.
- Business Insider estimates that the potential for AI-driven cost savings for banks will reach $447 billion by 2023.
- The banking, retail, and healthcare industries stand to save more than $11 billion a year if they employ AI.
- Chatbots are projected to handle 75-90% of healthcare & banking queries by 2023.
- Banks save an average amount of $0.60 per chatbot interaction.
- JP Morgan saved more than 360,000 hours of labor using its COIN chatbot to quickly analyze complex back-end contracts.
- 43% of digital banking users in the US prefer to use a live chat or chatbot to address issues.
Frequently Asked Questions About Conversational AI Statistics
In an industry that is forecasted to reach a worth of 15.7B at 30.2% CAGR in the next few years, there may be a few things you’re still unsure of. Here are a few of the most frequently asked questions about conversational AI statistics.
What Companies Use Chatbots?
Only the most customer-focused companies are utilizing chatbots and conversational AI to assist their customers. According to a study, chatbots are used by about 19% of businesses. This number, as we’ve mentioned, is expected to grow tremendously in coming years.
Is Conversational AI Growing?
Traditional chatbots are dead. That’s why conversational AI has made its way into the limelight and is growing like crazy. We’re utilizing this advanced form of technology to improve customer self service, leverage knowledge bases to their fullest potential, assist agents in delivering consistently high customer experiences, and so much more.
Who Uses Conversational AI?
Companies in all industries utilize conversational AI and many more will join soon. These industries include: SaaS, FinTech, Financial Services, Insurance, Banking, EdTech, Education, Investing, and more!