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TechTalk#103: Things about Chat & AI that C-Levels Must Know

The world is changing. New technologies are being discovered all the time. Such as Artificial Intelligence (AI);which has become one of the foremost future investment opportunities, along with Internet of Things (IoT), Clouds, Security, and Blockchain.

Whatis.techtarget.com describes Artificial Intelligence as the simulation of human intelligence by machines. The concept was first raised in the 1950’s, but its current popularity often misled and sometimes brought fear to the people. As mentioned by Juan Hasang the Cloud Technical Leader of IBM Indonesia, some people afraid that this new technology will replicate the human mind, while in fact, this is not the case.

Thus, even a giant technology company such as IBM prefers to use terms such as “augmented intelligence” or “cognitive”, over “artificial intelligence”. These terms indicate a relationship between human and machine, with an assistive role to help people create better decisions in a data-driven environment.

Leveraging AI in This Changing Technology

People use AI for many reasons. In terms of business and industry, some utilize it to gain more customers and engage with them better. AI is also used to create better recommendations and analysis, without replacing humanity’s function. In sum, it helps to improve effectiveness in business activities, both in terms of cost and time. (Read how AI helps people in various field here).

However, the reliability of AI depends on the quantity and the quality of the data. The more data that is submitted, the better generalization that can be provided by AI’s algorithm. Nevertheless, to prevent bias, the data should be customized according to the needs of the project and updated every time, to reach maximum accuracy of 95%.

Hikmat Rizal Co-Founder EVA.id gave some tips on TechTalk #103. To create an efficient and appropriate algorithm for AI, the theoretical background, statistical data, and so on must be strong. The beginner developer can re-implement the presence algorithm, to make it familiar to them. Then, the data should be shifted to a data set and machine learning system must be tried in-house, to guarantee its effectivity. If the process is done, a developer can leverage AI’s ability by combining current algorithm with other cases.

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Chatbot, A Smaller Implementation of AI

Discussing wide concept such as AI can be confusing. Now, let’s dig deeper into the smaller implementation of AI, through one of its specific products: chatbot. Whatis.techtarget.com explained, a chatbot is a computer program that attempt to stimulate the conversation of a human being via text or voice interactions. However, the implementation of chatbot technology is still in the early stages in Indonesia said Ahmad Rizqi M, Co-Founder Kata.ai.

Nowadays, in terms of business and industry, some companies have utilized chatbot to empower their own web and mobile-based apps. However, the effectivity should be evaluated because few of them use chatbot so they will not feel outdated.

Chatbot has three main functionalities:

  • Customer Service

In terms of business and industry, chatbot can be used to reduce the cost and effort in organizing a customer service or call center. To date, it can not 100% replace the function of customer service, but if the function of customer service and chatbot is combined, up to 94% of business needs can be solved through chatbot. This has been experienced by Kata.ai, which developed Veronika, as a virtual assistant.

  • Productivity Bot

A chatbot that functions as knowledge discovery will help the user to receive information faster. It leads to a better and faster decision-making, which automatically improves the productivity. Perhaps the most sophisticated example of this function is shown by Alexa, a virtual assistant owned and developed by Google.

  • Engagement Bot

As an engagement support, chatbot can be used by an organization to interact personally with user. In terms of business and industry, IBM Indonesia predicted that what is exciting about future chatbot is its potential to be leveraged into a conversational advertising.

Leveraging Chatbot Technology in Customer Service

In terms of business and industry, C-Level companies and small-medium business enterprises (SMBE) may not see chatbot as an urgent need. Nevertheless, they also do not want to be left behind in using this popular technology. In that case, customer service chatbot could be a solution for organizations looking for applicable technology, but also bring a tangible return on investment (ROI) at the same time.

Here some tips on what to do  before C-Levels company and SMBE decide to implement Chat and AI technology:

  • Know Your Business Need

A better understanding of business needs will help to plan the concept of your chatbot. Whether it is used to engage customers or to discover knowledge will require a different approach.

Also read: “TechTalk: Improving Digital Literacy in Indonesia

To engage the customer, a customer chatbot surely needs to have a personal touch. Give the bot character, make the user interface (UI) as interesting as possible and update chatbot’s intelligence to understand human’s language, through Natural Language Processing (NLP).

  • Focus on User Experience (UX)

Creating a customer service chatbot requires cost and effort. Thus, it will be worthless if that chatbot can not  stand out among its fellows. Worse, it can not bring a better experience to the user and solve their problem.

So it’s a good idea to conduct research into what the user needs and research some case studies from other companies. This will help to formulate the user’s preferences into an interesting, not annoying chatbot that help user experience better.

  • Design The Right Concept

The person who knows the most about what the user needs, what kind of concept, which technology to use, is you (a company). Including whether to use a chatbot solely or combine it with other products of AI (such as video, photo and voice recognition) to engage and scale business. Any third party can only prepare the tools.

  • Start Tracking Data

For C-Levels who are considering to implement chatbots, they need to ensure that the basics of data tracking are established. Chatbots are only as good as the data available in the company. While this is indeed true, chatbots can also be an effective tool to collect data. Deploying chatbots will enable companies to automate simple processes (that can be facilitated using a straightforward decision tree model) and in doing so, data can be gathered from users easily.

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Having said all the above, one key thing that C-Level needs to understand is, the ROI of customer service bot, a productivity bot, and engagement bot all differs. For companies who are new to chatbot and want to try implementing chatbot, it is advisable to start with implementing a customer service chatbot first (instead of the productivity and engagement chatbots). This is because, the ROI of a customer service chatbot is easier to measure – reduce cost and increasing revenue potential due to the ability to engage customers at scale.

The last but not the least, based on the predictions of technology research firm Gartner, in 2020 the public will tend to have more conversations using chatbots. Meanwhile,  Accenture, a global management consulting, chatbots will boost economic growth by twice the current growth and 40% increase in labor productivity by 2035. Deploying chatbots will enable companies to automate simple processes up to 94% of business needs can be solved through chatbot and be an effective tool to collect data.

As per how Juan Hasang, the Cloud Technical Leader of IBM Indonesia said “AI helps companies to open bigger opportunities in different ways, channels, and places that can be achieved.”

What Can Qiscus Do for You?

Chatbots enable business to engage customers at scale, hence increasing revenue potential, but at the same time, reduce the need for manpower. This is what Qiscus, in partnership with Kata.ai, aims to help businesses with.

Through this partnership, Qiscus, as a Software Developer Kit (SDK) service provider will collaborate with Kata.ai as a platform for chatbot development that can be used in various chat platforms. Our collaboration will revolutionize the way businesses in Indonesia interact with consumers. Read our stories in here or drop your inquiries at [email protected].

 

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