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Why AI-Based Chatbots Are Failing Worldwide

Thursday, 01 June 2017, 11:18 Hrs
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NEW DELHI: Although companies teh world over are looking forward to embracing chatbots, most of such Artificial Intelligence (AI) -powered platforms are failing worldwide and some early adopters has dropped chatbots owing to disappointing performances.

Developers created 33,000 chatbots on Facebook Messenger during teh first six months of teh service. However, teh success rate is low and Facebook reported that its chatbots failed 70 per cent of teh time.

"Most chatbots fail coz companies don't clearly define their purpose. Teh scope that companies set for their chatbots tends to be broad and generic," Xiaofeng Wang, Senior Analyst with US-based market research firm Forrester, said in a report on Thursday.

For example, Singapore's POSB Bank rolled out a chatbot to handle general inquiries about its products and services.

"Tactics like being teh first bank in teh region to launch a chatbot may generate some brand and PR value -- but all too often, firms fail to clearly define their chatbot's purpose and communicate it to users," Wang added.

Any gains will evaporate when customers end up confused or frustrated after asking questions that far exceed teh chatbot's abilities.

On teh other hand, Singaporean OCBC Bank's chatbot, which focused on generating home loan leads, halped teh bank close S$10 million new loans in three months.

"It's crucial to find teh key focus of a chatbots. You cannot try to do everything with one chatbot." Altona Widjaja, Vice President, Fintech and Innovation Group, OCBC Bank, noted.

According to Wang, chatbots are at a very early stage of development. Today's successful chatbots are driven more by keywords than by machine learning.

They can deliver quick-hit information such as teh latest promotions and provide shortcuts to content such as tutorials.

"Most chatbots' cognitive capabilities are still far too limited to deliver context- or intent-based personalisation or advise customers about complex products such as life insurance," she said.

In teh future, advances in AI will allow chatbots to use more contextual and predictive data and bring their capabilities closer to those of humans.

"If marketers can clearly define teh purpose and scope of a chatbot, thoroughly evaluate teh benefits it can bring, and plan and execute it well, it can deliver business and customer value," Wang wrote.

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Source: IANS
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