Consumer Perceptions of Artificial Intelligence

Currently, consumers have positive-leaning, yet mixed emotions about AI. The majority of general consumers think that AI will make society better. According to a global independent survey conducted by Arm and Northstar in 2017, 61% of consumers believe that AI will make society better or much better, while 22% believe it will make society worse or much worse, indicating positive-leaning perceptions (Arm & Northstar, 2017). However, AI is a polarizing topic. Of that same set of global respondents, consumers reported feeling optimistic (33%), excited (30%), and enthusiastic (20%), while slightly less reported feeling concerned (27%), unsure (25%), and confused (9%). Despite responding positively about the impact of AI in society, people hold a somewhat evenly mixed set of positive and negative emotions.

Public Opinions on Artificial Intelligence

Other studies on consumer perceptions of AI reflect this same mixed, yet positive-leaning attitude. PwC (2017) reported that 63% of people agree AI will help solve complex problems that plague modern societies, and 59% of people agree AI will help people live more fulfilling lives. Further, 46% of people believe AI will harm people by taking away jobs, and 23% think AI will have serious, negative implications (PwC, 2017). Feelings of AI are polarized, but slightly more positive than negative. Moreover, 63% of consumers globally don't realize they're already using AI technologies. This lack of awareness offers marketers an opportunity to stabilize consumer perceptions of AI away from its current polarized nature and towards positive feelings of trust and excitement. AI's status as an immature technology allows companies utilizing it to proactively position the technology in a positive light, with the goal of helping consumers understand its benefits transparently. Additionally, seeing that 98% of marketers reported feeling optimistic about AI versus just 33% of global consumers feeling optimistic, firms implementing AI should be aware of how their customer base may perceive it to structure marketing efforts accordingly. For B2C companies, taking a more cautious positioning aimed at building trust and educating consumers about AI technology may be the best route.

The Rise of Chatbots in Business

Chatbots are text-based conversational applications that let a human user talk with a bot that replies automatically to them. They see widespread interest, with 95% of executives stating their usage of chatbots will increase in the near future, yet a study conducted by SAP revealed that only 9% of Fortune 500 companies are implementing chatbots (SAP, 2019). With practical applications in customer service, eCommerce, and more, chatbots are rightly deserving of their peaked interest.

Types of Chatbots

Currently, there are two main forms of chatbots. The first are rule-based chatbots that can only respond to specific commands. If the user does not input the correct command, the chatbot is not able to understand the prompt. The second form of chatbots are AI-powered. AI-powered chatbots utilize machine learning, NLP, NLU, and NLG to enable human-like conversations. This form of chatbot learns from past conversations with a user and can assess important information to store for reference in future conversations. AI-powered chatbots are the form of chatbots that I will be looking at in-depth, as they are becoming the standard for business usage. AI-powered chatbots utilize NLP, NLG, and NLU to understand what a user is saying, then respond like a human. The user types a message to the chatbot, and then it uses predictive analytics and a wide range of algorithms to "generate information proactively."

The Impact of AI-Powered Chatbots

The advancement of AI technology to the point where chatbots can respond in a human-like manner and provide relevant, timely information gives customers the ability to interact with brands at all hours of the day. This form of AI has gained traction considerably in recent years. What once was a technology used primarily for recreational purposes, such as on AOL's now-deceased instant messaging software AIM, is now widely used in business and accepted by consumers. With more than 30,000 different forms of chatbots available on just Facebook alone and 63% of consumers saying they are willing to communicate with a chatbot from a brand or business, this is a unique form of AI that marketers can utilize across many different use-cases (Smith, 2018). Zendesk reports that adoption of chatbots has increased from 30% in 2009 to 52% in 2013, and customers state having the highest satisfaction rate (73%) using them over other forms of customer service technology like telephone or email (Zendesk, 2014). Looking towards the future, Deloitte Digital cites a prediction from Forrester Research that chatbots will save businesses $8 billion per year by 2022 with consumer adoption at a rate where people converse with chatbots more than their spouses (Forrester, 2017). Having intelligent technology capable of communicating with customers in a human-like manner opens many opportunities for marketers.

Utilizing Chatbots in Marketing

Chatbots can be utilized to engage customers as soon as they land on a company's website, influence decisions at strategic points throughout the customer journey, and add value and satisfaction to the overall experience. Currently, the core use cases of chatbots in marketing are customer service, eCommerce, and personal assistants. As chatbot technology continues to evolve, its applications in marketing are expected to expand, providing even more personalized and efficient interactions between brands and their customers.

References

Arm & Northstar. (2017). Global consumer survey on AI perceptions.

Forrester. (2017). The future of chatbots and business savings.

PwC. (2017). Consumer perceptions of AI and its societal impact.

SAP. (2019). Chatbot implementation in Fortune 500 companies.

Smith, J. (2018). Consumer willingness to engage with chatbots. Marketing Journal, 12(3), 45-60.

Zendesk. (2014). Customer satisfaction with chatbots in customer service.