Rising Trend in Organizations Towards Chat-Bots for Customer Service

In this modern era of information and technology. Use of electronic gadgets has become a norm. Now a day’s often organizations prefer a machine over human to perform various tasks. Among various operations of a company. One vital task is its customer relationship service. Which is helpful for an organization to maintain and generate customers. So, whether you are a manufacturing or service base organization. You should be mindful of the fact that customer service can be a core competitive advantage of you over your competitors. Therefore, keeping in mind the importance of customer services. Organizations have strived to adopt various technologies to satisfy their customers. One such a technology. Which is commonly used by organizations is chat-bots for customer service.

Rising Trend of Organizations in Chat-Bots for Customer Service

Chat-Bots for Customer Relationship Services

Basically, chat-bot is an application. Which interact with humans using text messages via different platforms. Essentially, organizations are using chat-bots in its operations. Like, customer support, online assistance with ordering and maintaining schedules. This trend of using chat-bots by the organization in different customer related matters are on the rise.

As per a recent press release by global Newswire. It was reported that in 2018. The market value of chat-bots was $1.17 billion. In 2026, it is expected to reach $10.08 billion. Likewise, an oracle survey has indicated. Almost 80% of businesses are planning to use chat-bot service in next one year. This inclination of business shows. Chat-bots have positives. Which is availed by certain organizations and several other are planning to reap it.

Rising Trend of Organizations in Chat-Bots for Customer Service

Pros of Chat-Bots for Customer Service

Chat-bot is a time effective technology. If, it is used correctly. Usually for customer service. Human agents spent 75% of time in manual research. Whereas, only 25% of the time is spent resolving the issue of a customer. Moreover, for chat-bot user organizations. There is no wait time for their customers to connect with service agent. Unlike, human a chat-bot at one point in time can handle several incoming queries of customers. Therefore, in this way an organization can act swiftly to handle customer issues. Also, it can channel its human capital for other operational activities of the organization. Notably, it has been indicated in a report. Published in United Kingdom on 9th May, 2017 that healthcare, e-commerce, banking and retail industry will be able to save $8 billion per annum by 2022.

Rising Trend of Organizations in Chat-Bots for Customer Service

Cons of Chat-Bots for Customer Service

In contrast to benefits of chat-bots for customer service. There are some disadvantages which an organization should consider before employing this technology. Organizations should carefully choose among various chat-bot applications. It means that. The purpose of chat-bot must be well understood before allowing it to interact with customers. Because every chat-bot service has not advanced artificial intelligence and natural language system. These advance level technologies enable chat-bots to respond to customer queries. After taking the context into consideration. Moreover, chat-bots with advance artificial intelligence and language technology are able to condition themselves based on prior data. However, there are other bots in market. Who are simple path-based bots. These bolts, neither have the capacity to give context specific reactions to customer’s queries. Nor they can condition themselves based on prior data.

Chat-Bots for Customer Service adoption in Organizations

Chat-Bot Organization Fit

So, an organization must first understand its purpose of using bolts. Because if, a purpose of an organization is to make sale and look for new leads. Than advanced technology bots are an appropriate way forward. Primary path based bots are good for initial phase of greeting and guiding customers about core services of the organization. If there is a misfit between bot and organizational goal. Then, instead of retaining or satisfying customers. You might start to lose your customers.

  A reporter at Media Post Agency. Larissa Faw has reported.

Three-quarters of Americans (73%) reveal. They would likely not use a company’s Chat-bot again. After having a bad experience with it”.

Reliance on Technology

Given the rising trend of chat-bot usage in corporations. It would be naive decision to majorly rely on bolts for vital operations of organization. Such as customer services. Because it is a point. Where you can generate customer loyalty and additional sales. So, instead of substituting/replacing humans with chat-bots. It is rational to use a combination of both. Especially, in matters where product functioning are complex.

Moreover, there should always be an option for customers during their interaction with bots to switch to an agent. Because it is almost impossible for bolts to access the tipping point of customers. Which means chat-bots, as compare to human cannot properly judge. When does a customer get annoyed or frustrated. Exactly, when to pitch new offering to customers. Moreover, there will be a certain niche in your target market. Who does not want to interact with chat-bots. In fact, they prefer to wait for few minutes for a human based customer service.

Trend in Chat-Bots for Customer Service

Economic Ramification

In nut shell, it would not be witty decision to heavily rely on technology. Although, at present organizations are planning to do so. For example, Cambridge Industries Group, a Chine’s top supplier of telecoms equipment is planning to automate 90% of its workforce operation in near future. Such transformation, though have some benefits. But overall, we believe it could prove catastrophic. Especially because heavy reliance on technology will make the most of human capital redundant. As various reports and leaders have envisioned.

Organization employing chat-bots for customer service

A report by Oxford University and Deloitte:

“For customer services occupations. There is a 91% likelihood of automation, putting it in the top 50 jobs most likely to be lost. For call and contact center workers, the likelihood is 75%”.

A democratic presidential candidate. Andrew Yang stated:

“Automation might make workers obsolete in the future. It certainly has displaced many of them since the start of the Industrial Revolution”.

Chief Economist at Bank of England warned:

“The UK requires a skills revolution to avoid AI leaving vast swathes of people technologically unemployed”.


It is inferred here, the corporation should most rely on skilled humans for their customer services. Human capital has greater potential for understanding the needs of customers. Especially because of their ability of empathy. Importantly, well trained human agents have a higher probability of generating new business. Because of their ability to judge a customer’s need context better than a chat-bot. Moreover, this humanistic philosophy will bring more fruitful results for the overall economy. As compare to pure rational productivity base school of thought.

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