Chatbots have often been associated with negative experiences by customers in the retail industry. Shoppers are accustomed to slow and unhelpful bots. However, with the advancement of technology and the widespread adoption of conversational artificial intelligence (AI), the world of chatbots is transforming. Chatbots are becoming more intuitive, able to respond to everyday human language, and bringing efficiency and better customer experiences to the retail world.

Changing Landscape

The retail industry has experienced a rapid evolution of chatbots from pre-programmed, rules-based bots to AI chatbots. While rules-based bots were limited to pre-programmed responses, AI chatbots can generate human-like responses and manage context. AI chatbots can also be trained and improved to offer better results over time, with customer service being the top retail use case.

Broader Impact

Retailers are experimenting with new and improved chatbots beyond customer support. For example, Walmart has launched “text to shop,” a chatbot that allows shoppers to search for items and checkout via text message. Walmart is also automating supplier procurement negotiations with the help of Pactum AI, whose chatbot negotiates with human suppliers on behalf of companies.

One to Teach Them All

In 2020, OpenAI released an API that made it possible for apps to be built using its language processing model, GPT-3, one of the largest and most powerful language processing models available. GPT-3 has made it easier for retailers to build virtual assistants that can make recommendations and check inventory, order tracking, and setting up curbside pickup.

Not So Fast

However, despite the immense possibilities of conversational AI in the world of retail, retailers face several challenges. For one thing, consumer behavior may not be ready for the new era of chatbots. Retailers must figure out how to get people to re-engage with chatbots, considering past negative experiences. There is pressure on companies to ensure that their chatbots offer a positive customer experience.

Conclusion

The evolution of chatbots is bringing new and exciting possibilities to the retail world, with AI chatbots becoming more intuitive and able to provide better customer experiences. Retailers are already experimenting with new and improved chatbots that go beyond customer support. However, as much as the industry is excited about the possibilities of chatbots, it is crucial to ensure that the technology is providing value to customers and not causing further frustration.