Evolving Journey of Chatbots: Insights into Business Decisions

Rapid digitization and the emergence of the internet and mobile devices have altered how individuals communicate with businesses. Chatbots are specially designed and developed computer programs that interact with humans by simulating a conversation. Chatbots engage with humans using a variety of frameworks, ranging from a simple text interface to speech recognition capabilities. Conversational Agents are an evolved version of chatbots, where Natural Language Processing (N.L.P.) makes the interaction between the bot and humans much more realistic. This paper answers frequently asked questions about chatbots, bringing out the differences in mundane versus the complex tasks and business intelligence performance of chatbots, discussing the historical backdrop and background for chatbots and conversational agents, two types of dialogue systems. A timeline has been drawn to comprehend their advancement better. Next, a deep dive into how small and medium-sized businesses can reap the benefits of A.I. Chatbots by looking at various ways that chatbots can add value to businesses is carried out, along with linguistic differentiation and how it affects service and customer satisfaction. Finally, we analyse how companies in various industries use Chatbots for conversational marketing. The methodology followed starts with looking into the evolution of chatbots and the core decision-making changes with each step. Next, two types of chatbots have been defined based on technology and use and discover the complexity of these technologies. A deep dive into how businesses can reap the benefits of A.I., followed by the various ways that chatbots add value to businesses, is investigated, followed by reviewing the areas of applications in different industries. Lastly, analysis into how companies use chatbots for conversational marketing is done.