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Benefits from Chatbots for a Business


According to the Grand View Research 2018 report,1 the global chatbot market is expected to reach $1.25 billion by 2025, with a CAGR of 24.3% (average annual growth rate). The chatbot market will grow significantly across the financial services sectors, as they are among the largest customer-facing businesses (in our context, the insurance business). The immediate value creation for institutions happens by significantly reducing the operating cost and bringing customer satisfaction.


Technically speaking, chatbots are a combination of technology, artificial intelligence (AI), and business process designs.


  • The technology provides the carrier for exchanging messages between chatbots and customers, and chatbots and internal systems, delivering information in real time over mobile phone or the Web.
  • The AI builds the core brain of the chatbot, which understands the natural language decoded from machine instructions. They also make decisions during conversations.
  • The most critical piece is the business process design, which identifies the standard process to access information, what information can be shared with whom, and convenient ways to buy/sell/inquire about current products.


While chatbots offer immense monetary value for the company regarding reducing the cost of customer service and as a new channel for revenue by sales of products and services, they also add immense value to the customer’s experience.

1www.grandviewresearch.com/press-release/global-chatbot-market


  • 24x7 availability: Chatbots are available 24x7 through phones or the Web. This gives the customer options of when to interact with the services.
  • Zero human touch experience: Chatbots allow customers to have a zero human touch experience for their basic requirements. This way of getting the necessary information without going through the manual route is entirely new.
  • Simplicity: Chatbots simplify the process for customers by decoding the process into clear steps. The information delivered by chatbots is also very concise and to the point, as per the customer query.


Daily, the ever-changing chatbot market is coming up with disruptive ideas and delivering value across the spectrum.


Textbook: Abhishek Singh, Karthik Ramasubramanian, Shrey Shivam, “Building an Enterprise Chatbot: Work with Protected Enterprise Data Using Open-Source Frameworks”, ISBN 978-1-4842-5034-1, Apress, 2019