7 Definitive AI Chatbot Trends and Predictions for 2022

AI chatbots have the potential to offer a personalized and seamless experience that can ultimately help boost revenue. Learn more about AI trends and predictions in this article

7 Definitive AI Chatbot Trends and Predictions for 2022

“Growth in digital data, low-code development tools and artificial intelligence (AI)-assisted development are among the many factors that enable the democratization of technology development beyond IT professionals.” Rajesh Kandaswamy, Research Vice President, Gartner.

Whether it's an AI chatbot, virtual assistant, or WhatsApp chatbot, messaging apps have revolutionized the way shoppers interact with brands. Technology is becoming increasingly focused on becoming more empathetic and convenient. This has allowed brands to conduct sentiment analysis and answer exactly what the user is looking for.

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Chatbot Statistics

Conversational AI is an up-and-coming market that opens up a range of opportunities for brands across the globe. Here are some fascinating AI chatbot statistics to watch out for:

  1. The projected value of chatbot eCommerce transactions is $112 billion by 2023
  2. 75-90% of the percentage of queries are handled by bots in 2022.
  3. 40% of shoppers don't care if they’re helped by an AI tool or a human, as long as their questions get answered.
  4. 38% of consumers think brands should use chatbots for deals, coupons, and promotions.
  5. 69% of respondents said they’d prefer chatbots for receiving instant responses and are most likely to use chatbots for service related inquiries
  6. 55% of consumers are likely to try a chatbot that offers location-based deals.
  7. 47% of consumers would buy items via chatbot
  8. 69% of consumers prefer to use chatbots for the speed at which they can communicate with a brand.
  9. 37% of users say they would use a chatbot to get timely responses in an emergency
  10. 22% of respondents said they already trust chatbot recommendations for product purchases.
  11. 40% of millennials engage with bots on a daily basis
  12. 67% of US millennial internet users use a chatbot to purchase a product/service
  13. Business leaders claim chatbots have increased sales by 67% on average.
  14. 64% of businesses believe that chatbots will allow them to deliver a more customized customer experience.
  15. The global chatbot in the banking, financial services, and insurance market was valued at $586 million in 2019 and it is expected to reach $7B in 2030. (NMSC)
  16. 33% of consumers would use a chatbot to make a reservation at a hotel or restaurant.
  17. 34% of retail consumers would be comfortable speaking with customer service through an AI chatbot instead of live chat.
  18. Over 70% of chatbot conversations will be with retail chatbots by 2023
  19. Clothing is the most popular product type sold online with the assistance of chatbots and 22% of the most successful online stores sell clothes.
  20. 88% of customers had at least one conversation with a chatbot within the past year.
  21. Chatbots handle 68.9% of chats from start to finish.
  22. 55% of businesses that use chatbots generate more high-quality leads.
  23. Chatbots will save businesses $8billion in 2022
  24. Approximately 40% of people of all ages prefer to use chatbots when shopping online
  25. 48.78% of female shoppers like chatbots and use them as a channel of communication when buying online.
  26. 29% of people use chatbots to pay bills
  27. 22% of people use chatbots to get ideas and inspiration for purchases
  28. eCommerce stores adopting Facebook messenger along with an abandoned cart chatbot have started to boost revenue by 7-25%
  29. 71% of consumers would gladly use a bot if it would improve their customer experience.
  30. 53% of companies identify AI as a tool for creating a “customer-first culture”

Read also Top 48 WhatsApp Statistics You Must Know

Here are some chatbot trends that you should look out for:

#1: Interplay between Conversational AI X Omnichannel

According to the latest ‘State Of Customer Experience’ report by Genesys, more than 80% of consumers prefer to be able to switch between channels as they engage with brands. With the advancement of technology, customers have become more inclined towards convenience while shopping. Conversational AI has posed a lot of benefits such as having interactive conversations across channels, interpreting what customers are looking for, responding in real-time, and more.

An omnichannel brand aims to create a convenient and seamless experience across channels and conversational AI has been able to accelerate and ease this process. For instance, an ordering system for a popular food joint. A popular food joint has a range of customers with different tastes and preferences. An automated conversational AI bot proves to be helpful in this case. It can automatically pull data from the customer’s previous order, send recommendations, and more to ease the ordering process.

#2: Interplay between Data Encryption X Conversational AI Solutions

Chatbots have the potential to collect an ample amount of data from a single user within a short span. When this data is plugged into AI tools, the potential to generate insights is limitless. According to a report, the volume of data gathered by retailers alone is anticipated to surpass 175 zettabytes by 2025. Hence, one of the most important AI chatbot predictions is that data encryption will be a priority. This is because the volume of data collected by conversational AI will be vast and protecting this data will be of paramount importance.

#3: Personalized Conversations

Conversational AI solutions can now integrate with almost all messaging apps, such as WhatsApp, Facebook Messenger, Slack, and Telegram. With the rise of mobile messaging, it is clear that brands will have an opportunity to own the entire sales funnel. In addition, the data collected by AI chatbots will further help brands personalize the shopper’s experience. The added advantage of in-app purchases via messaging channels will further escalate the rise in conversational commerce this 2022.

AI chatbots are now able to understand the context of a sentence, thus delivering a relevant and data-driven conversation with a customer using NLP and machine learning. In fact, a report found that 80% of customers are more likely to do business with a brand that offers them a personalized experience.

Read also How to Boost Customer Loyalty with WhatsApp?

#4: Voice Assistants

voice ai

One of the most intriguing AI chatbot trends is the rise of voice assistants. Voice assistants have changed the way we search and shop. According to a report, there are over 100+ million Alexa-enabled devices on the market. In addition to this, the market is expected to further grow by 1000%. A voice assistant must have three key characteristics:

✅Voice as input: the input must be through voice

✅Conversational: it should have natural and contextual two-way conversations with the user

✅Conformational: it should be able to confirm, clarify and answer the user with contextual information.

Users are already accustomed to using “OK Google, show cafes near me” or “Alexa, play instrumental music”. In fact, a report found that voice shopping will reach $40 billion in the US in 2022. 62% of voice-enabled speaker owners have bought items via voice commerce. Voice technology has already started yielding major results and is expected to have a 154% jump in the voice AI market from 2020 to 2026. In addition to this, a survey suggests that 28% of the users in the US have already switched to voice payments.

It can be concluded that voice chatbots are the future of interaction and will be a mode of choice in the coming years.

#5: Payment via Chatbots

Brands have been seen to shift towards conversational automation and social commerce. Payment integrations with AI chatbots have revolutionized the way customers shop with brands. In fact, the global transactional value of mobile payments is projected to cross $12407.5 billion by the end of 2025.

Digital payments have proven to be more advantageous since it eliminates geographical boundaries, are convenient, time-saving, and adds a protective layer. The functionality of AI chatbots is limitless. In addition to answering customer queries, it can also process and accept payments. For instance, a shopper viewed one of your products and clicked on the “Buy Now” button on messenger. Instead of switching to your website, the AI-powered chatbot can automatically send a payment link and complete the transaction on the go.

#6: Customer Experience via AI Chatbots

AI chatbots have redefined customer experience due to their ease of usage, convenience, and availability. An increased focus on customer experience generates a revenue increase of $823 million over 3 years. With the help of chatbots, businesses can automate several functions like lead generation, sales, FAQs, and customer feedback.

AI bots are available 24/7 that customers can access anytime and anywhere. In fact, a report found that 47% of users are open to purchasing items through chatbots. Due to its easy accessibility and usage, customers can actually browse, shop, and pay.  This not only boosts customer experience but also customer retention.

#7: Use of AI bots in Commerce

A very up-and-coming trend is the usage of AI bots in commerce. A commerce bot can be implemented by online retailers to engage customers at every stage of their journey. For instance, a customer lands on your summer collection ad and enquires about the dress.

The AI-powered bot can address the customer’s inquiry, help her add additional items to the cart and complete the transaction on the same messaging app they used to interact with the brand.  A great example is eBay’s shopbot. The bot can guide customers through their product catalog, asks questions to understand their needs, and offers product recommendations based on them.

In addition to this, AI chatbots can also remind users of the items they left in their cart and ask if they are willing to proceed to checkout. AI in commerce helps brands deliver high-value experiences throughout the shopper's journey.

How to use Conversational AI to Boost Sales?

Chatbots can automatically engage with potential and existing customers across messaging channels. Having a conversational AI bot not only helps you deliver smart conversations but also helps you drive sales. Here are some ways you can use conversational AI chatbots on WhatsApp to boost revenue:

Promotional Alerts

A report found that the number of people using digital coupons reached 145.3 million in 2021. You can send promotional alerts on WhatsApp to incentivize customers to make a purchase.

These chatbots can also notify and remind customers about their coupon codes, and loyalty points and nudge them with information to make a purchase. In addition to these, WhatsApp promotional messages are a great way to create a buzz around your latest sale, and discount coupons to entice new leads.

Abandoned Cart Alerts

You can recover your abandoned carts by sending alerts on WhatsApp. For instance, a customer abandoned a dress in their cart. Your conversational AI bot can send a message saying “Hey Sarah, you left this dress in your cart. Would you like to take another look and complete the purchase?”

Abandoned Cart Alerts

You can also add additional discounts to the customer to incentivize them to complete the purchase. A great way to do this is by adding a countdown timer to your message highlighting that the coupon is only valid for 2 hours.

Product Recommendations

Product recommendations on WhatsApp

You can send product recommendations while the shopper is interacting with your brand. For instance, a customer enquires whether a pair of jeans is available in size S.

Your bot can answer the query and recommend matching shoes that go with the jeans. The customer may consider adding the shoes to the cart thus increasing your average order value. Conversational AI chatbots allow brands to send personalized product recommendations on the go and helps boost revenue.

Wrapping Up

Chatbots will be a driving force for conducting business operations. Customers want an easy and effortless experience while shopping. And AI chatbots have the potential to offer a personalized and seamless experience that can ultimately help boost revenue.

Ready to get started? Book a demo today!

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