What is an AI Chatbot? Why is it important for contact centers?


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AI chatbot

Ever since AI was developed, people have been asking the question: will robots eventually take over our jobs? Well, it looks like that day may be coming a little sooner than we thought, as AI Chatbots are now being used to do everything from giving customer service to generating leads.

If we talk about the contact center the emergence of AI Chatbots in the contact center is growing rapidly. As shown through research, “customers are more satisfied with AI Chatbot interactions than traditional phone-based customer service”. This means that businesses can operate their contact centers at a higher level of efficiency while improving how they serve their customers by implementing an AI-based chatbot to handle simple tasks like information gathering and routing calls – which frees up human agents to focus on complex issues or provide proactive guidance. Keep reading this article to learn more about the chatbot and what is the importance of a contact center.

What is an AI Chatbot?
AI Chatbots are one of the most innovative and ground-breaking pieces of technology to hit the market in recent years. AI Chatbots are computer programs designed to simulate conversation with humans-they can be programmed to respond based on inputs like words or phrases typed into a text field, audio recordings, or other methods for human input

AI-based chatbot provides an engaging, human-like experience using machine learning that makes it easy for customers to find what they need and get answers to their questions. Plus, chatbots are constantly learning and getting smarter with time, so you can rely on them for continued support.

Research says “The global chatbot market is expected to grow at a compound annual growth rate of 24.9% from 2021 to 2028 and to reach USD 2,485.7 million by 2028”

Why should Contact Centers use AI Chatbots?
As the AI chatbot can interact with humans, it can provide customer service at scale. The contact center will be equipped with enough resources to handle more customers by using AI Chatbots which are responsible for handling routine inquiries. This technology has already been adopted in some industries such as banking where they have seen an increase in revenue after deploying this type of program. For example, the chatbot can collect critical information that is needed to handle those cases correctly and hand off customers to their appropriate departments or agents when necessary.

Let’s understand what are the challenges that a contact center faces and how an AI chatbot can help

Enhance Customer Experience
Contact centers are constantly under pressure to deliver a world-class customer experience. AI chatbots can work as the ultimate solution for these challenges, delivering a professional and personalized customer experience. AI-based chatbot helps the contact center to alleviate some concerns about wait times by allowing customers to connect with the AI chatbot.

24×7 Availability
Businesses can now be everywhere, all the time. As opposed to traditional customer services that are only available during work hours and on weekends-a chatbot is always ready for you! You’ll never miss out again with this helpful tool at your disposal 24/7 7 days a week whether it’s in mid-afternoon or late night when others need help most urgently.”

Reduce Cost
Chatbots are an efficient way to cut down on costs. Not only do they help businesses save money, but chatbot technology is also improving at a rapid pace which means that your business will be able to implement this new system more easily than ever before!

Agent’s productivity
As the AI chatbot market continues to grow, more and more companies are using this technology to increase their agents’ productivity. A study by Microsoft found that when a human agent is working with an AI chatbot, they make 8% fewer mistakes per hour.

The use of AI chatbots in contact centers will continue to grow. Businesses are investing in AI chatbots. This is because companies are realizing how important it is for their customer service representatives (CSRs) to be able to spend time in solving problems instead of handling basic inquiries like “How can I get help?” or “What’s your phone number?”. But there are also many other reasons why this new technology could prove invaluable in a contact center setting.

Shambhavi Sinha
Shambhavi Sinha is a technical blogger & Product Marketer and has been writing for 3 years. She is into technology and writes tech-based stuff. Her aim is to provide knowledge to users by sharing tips and tricks about new technologies, DIY, and knowledge about Customer Experience.


  1. Thanks for sharing.
    The pre-sales process, like customer service, is simplified.
    The company is able to provide answers in a short period of time, reducing the customer journey.


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