Human versus machine: demystifying the chatbot myths

Companies expect automated communication with chatbots to deliver cost benefits, but also improved processes and better customer relationships in the long term. In the harsh reality of the battle for increasingly demanding customers, however, some of the promises of chatbot technology prove deceptive.

1. Chatbots per se lead to cost reductions and more efficient processes

   Chatbots can support processes through automation. However, inefficient processes cannot be saved by chatbots either - customers then additionally resort to other channels in case of problems, so that the costs increase overall. The prerequisite for the use of chatbots is therefore well-structured processes.

2. Chatbots are already so sophisticated that they can replace traditional forms of communication

   Indeed, AI has made great strides in recent years, significantly expanding the possibilities for using chatbots. Nevertheless, the technology is only at the beginning. Currently, only simple processes can be designed with chatbots. Although work is underway on truly mature systems that can also handle complex processes, productive use is not expected until some time in the future.

3. Chatbots improve the customer experience

   For many companies, cost aspects are the starting point for considering the use of chatbots rather than the optimization of the customer experience. However, if the customer is not the focus, chatbots will tend to worsen the customer experience.

4. Customers do not realize that they are communicating with machines

   As a rule, customers quickly realize that they are communicating with a machine - even if the chatbot calls itself "Tom," "Bill," or "Marie" in a friendly manner. Customers are much more likely to feel that they are not being taken seriously. If companies use chatbots, they must definitely make it transparent that they are using AI for their communication.

5. Customers want to communicate with chatbots

   In fact, customers tend to be annoyed when they are offered communication with a chatbot. If there are difficulties in a dialog or process, they would rather speak with a "real" employee - all the more so because the limited capabilities of most chatbots mean that they will be referred to this channel sooner or later anyway. The fact that customers prefer to communicate with chatbots of their own accord is a self-deception on the part of companies that are primarily concerned with their costs.

6. Chatbots can be used to cover the entire customer communication process

   Chatbots can only ever be a supplement to other communication channels. In a limited area, they can indeed accelerate processes and also save costs, for example, when ordering documents, instructions for use, or when providing information about delivery dates. Complex processes must - as yet - be covered by other channels.

"Chatbots are very well suited for automating simple processes," explains Carsten Rust, Director Solution Consulting DACH at Pegasystems in Munich. "However, many companies make the mistake that they expect too much from this technology and that they only see the costs. The fact that this has a negative impact on aspects such as the shopping experience or customer loyalty usually becomes clear to them too late. Chatbots should therefore be used cautiously within the framework of processes that have already been optimized. Then there will be no acceptance problems on the part of customers."