how chatbots will overtake the app in 2017

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THE CHATBOTHAS [email protected] #apidays

As we kick off the day, Bruno offered us some exciting news for the role of chatbots in developer experience and the API economy. Now Im going to offer you the business proposition of why no matter what your API is you should be considering turning it into a chatbot, connecting to a chatbot and just leveraging the omnipresence of messenger apps in our lives

Will the Chatbot be the death of the app?cartoon by mimoso kawase

How many people here are using chatbots in their daily lives?How many people have integrated or created your own chatbots?How many have chatbots a part of your product roadmap?

Just like how back in 1981 video killed the radio star, 2017 is looking like the year that the chatbot will kill the the mainstream app

The conversation is the command line (CLI) of tomorrow. Daniel Harvey,experience designer

Experience designer Dan Harvey aptly said that conversation is the command line of tomorrow. Since the 60s we have needed the right syntax and grammar to tell computers what to do. Now we can just tell it what to do and it usually does it!

And on the cusp of fulfilling Turings vision, now the chatbot interacts with you to continue learning what youre looking for and how better to guide you.

The near future of the Internet of Things has us having conversations with inanimate, yet increasingly animated objects

Conversational Interface:no click, no swipeintuitive, reactionarycontextualanticipating

The near future of the Internet of Things has us having conversations with inanimate, yet increasingly animated objectsTheres no need to click or swipe. Maybe youll type, increasingly youll speakIts intuitive, reactionary and contextual, something that Siri with her pithy one liners is nowhere near. You ask Siri Whats the weather in Barcelona next weekend? And shell respond with the temperature. While shes always listening, she isnt sophisticated enough to compound that learning and relating your first question with the next. If its going to be nice weather, you can ask more advanced chatbots Check to see if there are cheap tickets and if you are living in London like me, itll not only infer that you want to mean tickets to Barcelona but plane tickets, showing results from RyanAir, Vueling and Norwegian. As the chatbot machine learning continues, they will start anticipating and suggesting like Ooh look at this hotel deal. And Barcas in town if you want to buy tickets now.

Top Six Most Used AppsKakaoTalkWhatsAppWeChatVKLineViber 1-4 together are more than all social media usage

Chat apps are already our most used appsFB Messenger is #10

Facebook MessengerMore more than 1 billion users

Snapchat60 million users in U.S. & Canada

WhatsApp7 million messages in 2015

Messenger Apps have already slaughtered SMSFB Messenger has more than a billion usersSnapchat 60 million in just the US and CanadaAnd WhatsApp saw seven million messages sent last year.

We spend ten hours a day on Slack

Its not just fun chatting, but business too. I thought at first this number was ridiculous but then I realized my Slack addiction is real.

Chatbots are built into our communication flow in apps we use most.

Chatbots are built right into our common flow of communication in the apps we use most so by integrating with your API, you get access to that train of thought.

Also, Im a marketer so I know that Facebook Ads are way more successful than AdWords or Bing. Why? Simply put, we naturally let our guard down when we are on our favorite social network. That means we are much more likely to make purchases from inside Messenger than from inside other apps.

And as Chatbots get smarter, itll start reacting to what we were thinking now, instead of popups based on our previous search history.

Facebook Ads are WAY more successful than AdWords or Bing because we let our guards down.

Retargeting ads are based on what we looked at before. Chatbot ads are what were talking about now.

Chatbots are built right into our common flow of communication in the apps we use most so by integrating with your API, you get access to that train of thought.

Also, Im a marketer so I know that Facebook Ads are way more successful than AdWords or Bing. Why? Simply put, we naturally let our guard down when we are on our favorite social network. That means we are much more likely to make purchases from inside Messenger than from inside other apps.

And as Chatbots get smarter, itll start reacting to what we were thinking now, instead of popups based on our previous search history.

It used to be that all software expands until it includes messaging. Now all messaging expands until it includes software. Benedict Evans, Andersson-Horowitz

Marc Andersson so famously said that Software is eating the world but now his colleague at the VC firm said that We can now or soon just live in messenger and like Hitch all software tools will now expand to include chatbots and messaging service.

Chatbots + Messenger Apps= Blisscontinuous + asynchronousmore intimatecloud-basedcheapermore efficienteverything is integrated together

So why do we like chatbots? More and more our communication is continuous and asynchronous. Whens the last time you wrote BRB - be right back in a conversation? We take if for granted that we can just drop off and pick the conversation back up later.

Chatbots are more intimate = after a decade of oversharing on social media, Chatbots give us a more intimate two-way form of communication again

cheaper = it cuts on labor for tech support but it also helps you cross-sell and upsell. Plus since its all in the cloud, you can build it from anywhere.

its more efficient because its where were communicating already and everything flows together.

But its not all groovy. In August, Gartner threw Chatbots into its Trough of Disillusionment, arguing just four months after Facebook launched its chatbot marketplace, us regular humans arent ready for it yet.

61% of consumers look at Chatbots as the future.

2017 will be the Year of the Chatbotand the Rooster.

So yes itll still be the year of the Rooster, but of the chatbot too. Because while we dont really know or understand how to interact with Chatbots just yet, we know we want them, with 61 percent of consumers assuming its our near reality.

The Chatbot is the Trojan Horse for AI.

Chatbots will test AI at scale. Machine learning & natural language processing will drive continuous improvement.

But certainly chatbot is how we get artificial intelligence to go mainstream, but its just simply not that smart yet. The chatbot will be how we test AI at scale really out in the wild and, with machine learning and natural language processing, itll continually improve. Thats why Im pegging next year, not 2016.

Facebook MessengerIn just 6 months, 30,000 chatbots

PandorabotsHelped create more than 285,000

Forget Big Data.Forget AI. Chatbots will climb Plateau of Productivity the they start making money.

Its not the tech thats keeping the Chatbot from climbing to Gartners Plateau of Productivity, its the money. Forget the Big Data. Forget the improving AI.

How can you make money now by connecting to a chatbot?

Customer Service (a super resource-intensive department with low ROI)

29% cut on staff now (85% in 3 years)almost half as much call time43% consumers would prefer to only talk to chatbotstake care of the basicsfaster response timesautomate repetition > more innovationno need to build an app!

Customer service is going to really benefit from it.- Customer support is one of the most resource-intensive departments and its one of the hardest to equate that expense with real return on investment- McKinsey estimates 29% of customer support positions can be automated by chatbots today. Gartner has this number at 85% in just three more years- We literally dread picking up the phone to call tech support. Another study found that 43% of consumers said that, in a perfect world, all customer service should be done through intelligent assistants or chatbots. Were used to not talking to people and we really dont want to.It takes care of all the basics. What time do open? What time is hotel checkout? Do you integrate with this other tool? This isnt even machine learning, this first level of chatbot is a resourceful and interactive knowledgebase, FAQ, and resource documentation.Were more and more impatient. In fact, half of us expect a response time within 24 hours, 7 days a weekOf course you know that when you automate repetitive tasks, you open up a lot more room for innovation.You dont have to reinvent the wheel by building a customer support functionality into your app or having customers download an app at all for you. Build it into what they already have

Payment Services (make easier to pay you, less cart abandonment)

WeChatFacebook Messenger

Of course the best way to make money, is to enable people to give you it. Chinas WeChat has been doing this for awhile now.On the eve of the last Chinese New Year, more people sent lucky money over WeChat in one night than all the total transactions made via PayPal in 2015. As of this past September, now the Facebook Messenger bots are able to accept money for you right there, instead of having to open up a browser or app to finish the transaction. Any time you can smooth payment processes with fewer steps and windows, the less cart abandonment youll have.

Workplace Productivityall in one placeuniting communication and productivityboth bot-first and bot extensions of existing softwarefaster onboarding (like Slackbot)