Do customers want to communicate with machines? Six disenchanted 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.

Pegasystems Inc., a provider of strategic software solutions for sales, marketing, service, and operations, debunks some common chatbot myths. The company offers off-the-shelf software applications for sales, marketing, service, and operations. Pega’s solutions incorporate artificial intelligence (AI) technology.

1. Chatbots inherently 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 advanced that they can replace traditional forms of communication

In fact, AI has made great strides in recent years, significantly expanding the possibilities for using chatbots. Nevertheless, the technology is still in its infancy. Currently, chatbots can only be used to handle simple processes. While work is underway to develop truly sophisticated systems capable of handling complex processes, their productive deployment is not expected until 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 don't realize they're communicating with machines

Customers usually realize quickly that they’re communicating with a machine—even if the chatbot calls itself «Tom,» «Bill,» or «Marie» in a friendly way. This often makes customers feel like they aren’t being taken seriously. When companies use chatbots, they must make it clear that they’re using AI for their communications.

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 handle all aspects of customer communication

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 of Solution Consulting for DACH at Pegasystems in Munich. «However, many companies make the mistake of expecting too much from this technology and focusing solely on the costs. They usually realize too late that this has a negative impact on aspects such as the shopping experience or customer loyalty. Chatbots should therefore be implemented cautiously as part of processes that have already been optimized. Then there won’t be any acceptance issues on the part of customers.»