Despite the hype around AI, machine learning and chatbots, we are a long, long way from developing a genuine artificial intelligence, like HAL 9000 from 2001: A Space Odyssey, that ‘thinks’ and understands context and intent like humans do.
On the other hand, we are at the beginning of an AI revolution that will forever change the way businesses interact with their customers. And the excitement around this, is why chatbots, and the AI technologies that power them, are near the top of the Hype Cycle today.
With the right expectations and a good understanding of the current capabilities and limitations of today’s chatbot technology businesses can use AI to solve a number of customer contact challenges.
Intelligence in modern chatbots
The chatbots that businesses are starting to deploy today come in two flavours. Those that are based on machine learning try to understand the context of and intent behind an input before formulating a corresponding response to it. This relies on training a neural network to ‘think’ for itself by providing it with thousands or millions of examples of whatever it is you want it to be able to do.
The second approach we call rules-based. This type of AI, simply takes an input from the customer, checks the rules that have been defined, and gives the pre-programmed response.
The reality is that machine learning chatbots are not yet advanced enough to be deployed on a mass scale by businesses, with a chatbot solving multiple use cases and engaging customers at will. In fact, unless it’s for a very niche purpose, machine learning chatbots can do more harm than good for a business because they cannot guarantee the experience they will deliver.
Gresham House Strategic PLC (LON:GHS) has a 12.1% ownership of IMImobile PLC, correct as of 29 September 2017 month end NAV announcement, released 02 October 2017
