2019 International Conference on Artificial Intelligence: Applications and Innovations (IC-AIAI)

Artificial intelligence marketing: Chatbots

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Faculty of Organizational Sciences Faculty of Organizational Sciences
University of Belgrade University of Belgrade
Belgrade, Serbia Belgrade, Serbia
[email protected] [email protected]

Artificial Intelligence is a tool that enables marketers to constructing smart machines." Smart machines in this case
create highly personalized customer experiences, increases signify the level of success of copying the human mindset
organization’s responsiveness and solve customers’ problems. In [1].
this paper, the chatbot is analyzed as an artificial intelligence tool
in marketing, its today’s application, as well as its future Artificial intelligence enables marketers to create highly
potential in the above-mentioned field. A survey of respondents' personalized customer experiences while costing less than
behaviors, habits, and expectations when using different expensive, traditional marketing campaigns. Any user
communication channels was conducted, with particular interaction with a product or service is used to optimize and
emphasis on chatbots, their advantages and disadvantages in personalize that product / service in the future.
relation to other communication channels, in total sum of 60
survey respondents. The results showed that the greatest Artificial intelligence has transitioned from a concept
advantage of using chatbots in the marketing service was when used in science fiction to today's technological reality.
providing simple, fast obtained information, but also showed According to a PwC survey [2], 72% of marketers
respondents' fear of chatbots giving them the wrong information. interviewed see the use of artificial intelligence as a business
Organizations should consider using chatbots, especially if advantage.
challenges in communication with customers are reality, but also
With customer data, companies can make their offer
if they intend to keep up with the growing number of consumers’
lifestyle.
more relevant and gain a competitive edge:
1. They can produce more consumer-oriented
Keywords—chatbot, chatbots, artificial intelligence, products.
marketing, big data.
2. They can provide more consumer-oriented services.
I. INTRODUCTION
3. They can more accurately determine the target
Artificial intelligence with the development of market, resulting in a higher conversion rate.
technology, and consequently development of technical
capabilities, is gaining increasing attention from both the 4. They can fully meet the needs of their customers.
scientific community and the general public. A growing Data becomes the most valuable capital of an
number of projects aim to incorporate artificial intelligence organization. With the increase in the amount of data, its
into business flows and potentially benefit from the usability for the purpose of artificial intelligence
aforementioned implementation. The goal of marketing, development through machine learning also increases. Large
from the perspective of the writer of this paper, is the resale amounts of data are necessary to build, test, and prepare
of good or service. Continuous sales i.e. a satisfied customer artificial intelligence.
who has an added value from the product or service
purchased, and then returns to make the purchase again. With Artificial intelligence has great potential when it comes
the entry of artificial intelligence into the marketing sphere, to improving industrial sectors. It has been used by financial
opportunities increase. Using a machine that can track firms, the automotive industry, law firms, etc. Owning data
customer behaviour, document observed behaviour, and and analysing it through the use of artificial intelligence has
notice patterns, it will be possible to create personalized become essential for businesses looking to outperform their
products and services, giving marketers far more competition. As already stated, artificial intelligence is not
opportunities. recently invented. However, long after its discovery, the
possibilities of artificial intelligence and machine learning
The role and potential of artificial intelligence in remained a mystery because we were unable to collect large
marketing will be explained in the following section, with a amounts of data but from different sources and across
focus on chatbots and conducted survey will be presented, categories in order to cross each other later. As large
which examined behaviour, habits and expectations of amounts of data were necessary to build and test artificial
respondents while using different communication channels, intelligence-based machines, no major leap was made in the
as well as the advantages and disadvantages that chat bots development of artificial intelligence at that time.
have compared to other channels of communication.
However, the situation has changed with time. Today, we
II. ARTIFICIAL INTELLIGENCE MARKETING have the ability to collect and store large amounts of data,
There are many different expert definitions that explain but also to cross and analyse them to draw conclusions and
what artificial intelligence is. The definition of Demis connect them. Changing and developing BDs also results in
Hasibis, co-founder and CEO of Google DeepMind is widely the development of artificial intelligence and its tools.
accepted, he defines artificial intelligence as "the science of

978-1-7281-4326-2/19/$31.00 ©2019 IEEE 19

DOI 10.1109/IC-AIAI48757.2019.00010
 III. CHATBOTS Artificial Intelligence - Does a chatbot behave like a
Bot is software that performs automated tasks, and human, to what extent is its intelligence similar to human?
chatbots fall into the category of bots that are used in various The "humanity" of artificial intelligence is measured through
messaging platforms. The goal of chatbots is to have a the observation of logical and abstract thinking.
conversation with humans, so communication with humans IV. ORGANIZATION´S CHATBOTS COMMUNICATION SURVEY
is the primary role of chatbots. It is desirable that access to
information be as easy as possible for the person and the Survey was used as a method of data collection. It was
messaging platforms are selected as convenient platforms for created, and later analyzed, using Google's tool, Google
people to use for daily communication. Forms. The survey was distributed online on several student
groups of the Faculty of Organizational Sciences on
A. Breakdown of chatbot market by segmentation type Facebook. The aim of the survey is to investigate the
The chatbots market is divided by following segments communication of respondents with chatbots of
[3]: organizations, i.e. respondents' behaviour, expectations and
habits when using different communication channels,
• Market segmentation by chatbot type especially Internet communication channels, and then
o Chatbot based on rules reflecting on the advantages and disadvantages of chatbots
compared to other communication channels, as well as
o Chatbot based on artificial intelligence assessing how respondents perceive chatbots.
It must be noted that rule-based chat bots represent a The target audience chosen is students, ie the most active
subset of artificial intelligence-based chat bots. millennials because they are the most common users of
Chatbots based on rules are generally designed to be an social networks and the Internet in general (pewresearch.org,
interactive FAQ page. They are programmed to recognize 2018). Several basic demographic questions were asked at
certain concepts and patterns, allowing them to respond with the beginning of the survey.
a predefined set of answers.
How old are you?
Chatbots based on artificial intelligence act like an
artificial brain, using sophisticated algorithms. They not only
understand the user's request, but also the context, intention,
emotion and continually becomes "smarter" by learning under 18
about the particular user through each individual
conversation.
3.3 % over 45
• Market segmentation by chatbot´s interface
o Chatbot based on the web
o Chatbot base on the application
• Market segmentation by chatbots´ end user
The age of the respondents was first examined. The link
o News and media to the survey was posted on the Student Groups of the
Faculty of Organizational Sciences, so 97% of the
o Online shopping
respondents are between 19 and 25 years old, was expected.
o Banking and insurance
Gender?
o Health care
o Games and entertainment industry
o Telecommunication male
female
B. Evaluation criteria for chatbots
Information as an answer - Does the chatbot provide the
requested and correct information when responding? The
focus is on quantitative results and the quality of the user
experience is not taken into account. The metrics used are
accuracy, precision and response.
Language principles - Is the chatbot capable of natural
and longer conversations? A non-numerical expert court is The gender of the respondents was next. Over two thirds
required. of the respondents are female, while males make up slightly
User Experience - Is the chatbot interactive and provides less than a third.
an engaging user experience? Qualitative experience is
measured and based on experience evaluations related to task
fulfilment and customer satisfaction, but measuring these
criteria can be difficult and expensive.

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 Occupation? difficult access to the necessary information on the site and
the organization's non-responsiveness to user queries.
When asked on what they think a chatbot would use,
Employed
Unemployed
users overwhelmingly expect the chatbot to get a quick
Student response (89%), reserve a place in a restaurant, cafe (65%)
Other
and product or service information (58%). Next question was
to answer in what situation they would not like to
communicate with the chatbot if they needed certain
information. The majority of respondents when asked for
information fear that the chatbot will give them wrong
information (almost 50% of respondents). The second most
common answer, with 47%, is that they would like to interact
with a real person. The third most commonly chosen option
(33%) is that they would not like it if the chat bot does not
The third question concerned the respondents´ communicate in a friendly way.
occupation. As expected, almost 64% of the respondents are
students, while the number of employees is as high as 32.8%. After that, they needed to connect the communication
channels with the expected speed of response. When it
comes to instant response, the chatbot is the most commonly
How have you communicated with organizations over the past 12 months? chosen channel of communication, followed by the phone
and the mobile application. However, when given a 24-hour
Phone
time period, about 40% of respondents expect a response via
E-mail
email, website and social networks. As for the response after
Chat bot more than 24 hours, 20% of respondents think they will
Website
Preko vebsajta respond to the email in that period, and 17% respond to the
Social networks
FaceLicem
to face with
request via the website.
u lice sa
organisations employee
zaposlenima organizacije
Mobile application After that, they had to choose the predefined benefits
Other they expected when communicating with organizations.
Chatbot respondents expect a quick answer to simple
questions, 24/7 availability and easy communication. Chat
bot is not the preferred channel of communication when it
When asked: "How have you communicated with comes to complex questions as well as getting experts
organizations over the past 12 months?", 77% of respondents answers.
have communicated with organizations by phone, 56% by
email, 55% via social networks (not counting chatbots), 43% V. CONCLUSION
live with some of their employees given organizations and
21% communicated with the chat bot. Although After covering the topics of marketing, artificial intelligence
communication is not very common with the chat bot, it is and chatbots from the theoretical and side and their influence
still more extensive than communication via the site or on the marketing practice of today, one gets the impression
mobile application. that the given influence will be increasing. Chatbots,
although a rule-based type, are already widespread and
widely used by humans. With the further development of
Do you use an online chat to start a conversation with organisations?
technology, artificial intelligence will become more
accessible and further explored, so its practical application
will grow further and at some point much of the operational
communication will take place with machines based on
Yes
No
artificial intelligence. In the survey, the results showed that
the greatest advantage of using chatbots in marketing is the
provision of simple, fast information, but they also showed
the fear of respondents getting the wrong information from
chatbots, which is something that needs to be resolved in the
future. With the aforementioned increase in the availability
of artificial intelligence technology and its application to the
realm of chatbots, organizations should consider the benefits
they can have, especially in the face of challenges in
communicating with customers but also if they intend to
When asked if they use an online chat to start a keep up with the lifestyle of a growing consumer.
conversation, 62% of respondents said that they have a
custom to start a conversation through an online chat. Next VI. REFERENCES
few questions will be presented in textual manner. The next [1] BBC News. (2015). Misuse of artificial intelligence 'could do harm'.
https://www.bbc.com/news/business-34266425. Assessed on August
question was to choose from the offered predefined problems 25th, 2019.
on the internet, the ones that they had experienced in the past
[2] PwC. (2017). PwC’s Global Artificial Intelligence Study: Sizing the
month. The most common problems respondents have on the prize. https://www.pwc.com/gx/en/issues/data-and-
internet are the lack of functionality of the site search option,

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Industry Forecast 2022. Arizton Advisory & Intelligence. older-generations-also-embrace-digital-life. Assessed on August 5th,
https://www.arizton.com/market-reports/chatbot-market-global. 2019.
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