AI Technology Growth Raises Value of Chatbot Market

AI Chatbot

The chatbot market is big and getting bigger. New estimates show the sector’s value will grow from $5.4 billion this year to $15.5 billion by 2028, a CAGR of 23.3%.

As generative AI and natural language processing become more powerful, more businesses are taking advantage of chatbots’ ability to manage large volumes of simultaneous conversations. That, in turn, allows them to better address needs involving HR as well as areas like customer service.

According to research firm MarketsandMarkets, the growth in chatbots is being driven by technology advances, a growing need for 24/7 customer support at lower cost and an increasing focus on engagement through different channels. While the report focuses on customer-support questions, many of those issues track to the needs of HR and talent acquisition.

More Sophisticated Conversations

Driven by AI and NLP, chatbots have become more sophisticated and able to better understand and respond to human language. By integrating chatbots into different communications channels – such as websites, social media platforms, messaging apps and voice assistants –organizations can offer more streamlined user assistance, and offer it more quickly.

Chatbots are also advancing their capabilities into the world of voice assistants, the report said, addressing needs such as scheduling appointments, setting reminders and answering queries.

Improving Candidate Communications

According to a study by Sense and the Talent Board, the use of chatbots in talent acquisition has increased 40% since 2018. The study found that the primary recruiting technologies used by TA teams with that succeed with candidate communications include conversational AI and basic chatbots (36%), candidate relationship management software (30%) and texting (28%).

As a direct result of implementing chatbots, Sense and Talent Board said, 51% of the study’s respondents cited a “significant improvement” in candidate satisfaction. When asked about the top benefits of chatbots, another 51% said the technology has improved their responsiveness in candidate communications.

Meanwhile, some 49% say their chatbots have enhanced the overall quality of their company’s candidate experience. Another 35% agreed that chatbots have freed up their time and improved their productivity.

Still, there are pitfalls. While more employers use chatbots to screen and interview job applicants, the technology can be clunky. One candidate told Forbes how a chatbit device cleared her for an in-person interview, but didn’t schedule it. Another chatbot did schedule an interview – for a job she was unqualified for. A third arranged a meeting with a manager who was on leave.

“It seemed like a more complicated thing than it had to be,” she said.

Image: 123RF

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