3 Ways the Conversational AI Industry is Shifting

3 Ways the Conversational AI Industry is Shifting

What does a generation of Alexa-raised kids look like?

Conversational experiences have altered, and sometimes enhanced, the way consumers conduct transactions and interact with brands. Over the past 2 years, developers and brands alike have dedicated time and resources to building conversational experiences on messaging platforms including Facebook, Slack, and Kik. During that time, technology giants have launched voice-powered devices with their respective assistants including Amazon’s Echo Dot, the Google Home, and Apple’s HomePod.

Last week, Dashbot hosted our 2nd annual chatbot and voice assistant conference, SuperBot 2018, in San Francisco at Bespoke Events. There were 2 notable differences in this year’s conference compared to the last that are key indicators to how the conversational industry is changing: the audience and the content.

In 2017, the audience was comprised of startup founders, developers, and growth marketers. In 2018, there was an influx of big brands including Target, Kaiser Permanente, Procter & Gamble, and Hulu. More importantly, last year’s speakers’ focused heavily on text-based conversational interfaces compared to this year’s lineup who concentrated on the promise of voice.

1. Practical Use Cases are Leading to Actual Revenue

Industry email marketing open rates have been hovering around 24%. Lauren Kunze, CEO of Pandorabots, has produced chatbots that have resulted in an 80% open rate. For the first time ever, brands can connect with consumers directly in an interface they are already communicating on and because of this, advertising and customer support chatbots are currently the most profitable.

It’s easy to reference customer service as a sample use case when discussing chatbots, but which industry is leveraging them in a productive, cost-saving way?  “Banks are actually market leaders for cognitive computing, which is one of the reasons why we chose to focus on that vertical,” remarked Dror Oren, Chief Product Officer and co-founder of Kasisto. They are able to quickly serve up data and information to customers through conversational AI experiences that a traditional banking experience wouldn’t be able to provide, which led to greater productivity and better customer experiences.

While replacing traditional customer experiences might be the route for some verticals, a supplemental conversational experience can lead to higher return and an elevated user experience. The Mars Agency launched an in-store, voice-powered assistant called Bottle Genius which helps customers make whiskey choices at NYC’s Bottlerocket Wine & Spirit. They created an experience that draws the essential elements of retail: the power of variety and aided decision-making. For the month of February 2018, this enhanced voice experience resulted in YOY sales increase by 14% for the 120 whiskeys featured on the Bottle Genius shelf set.

2. Big Brands are Fighting to Be Heard

How do you make sure your voice is heard when you’re extending a household brand to conversational interfaces? Michael Francisco, Amazon’s head of Alexa Skills Kit partners, compared two specific skills — the Patron Skill and the Johnny Walker Skill, both intent on selling you more booze. Both have similar functionality in terms of offering history about the liquor and information about the brand. Johnny Walker has a tasting experience and Patron has a recipe component. Patron is much more formal and in line with a traditional brand, whereas Johnny Walker is casually playful and jokes around. The writing is what will ensure your brand principles shine through in the assistant’s voice.

If you want to strengthen your voice beyond the default assistant voice, Amazon encourages companies, like Viacom, to use native-branded voices when building Alexa Skills for hallmark brands such as Comedy Central. Mark Mezrich, vice president of product management of emerging products at Viacom, commented on the resounding support his team received from Amazon when selecting Kyle Kinane as Comedy Central’s voice in place of Alexa’s. Kinane has played a huge part in bolstering and maintaining Comedy Central’s brand and tone as consumers discover comedy tracks.

Summing up the branded voice discussion was Austin Arensberg, principal at early-stage investors Scrum Ventures, who hit the nail on the head with his comment on the lack of attention to “auditory anchors.” As he put it, “Brands have made such great efforts to make sure that when people see golden arches, they automatically think of McDonald’s. But we have not done the same thing for voice.” Once people take the time to thoroughly think through the kind of voice and experience they want to translate onto these interfaces, customers will remember them.

3. Voice Technology is Changing Customer Experiences

Let’s make it clear: Chatbots are not disappearing. The chatbots that provide a delightful, productive customer experience are outshining chatbots that are simply trendy and entertaining. Last year, Alex Ferrara from Bessemer Venture Partners compared business-oriented chatbots to enterprise solutions because of their clear pathway to monetization, and we’re now seeing a lot more task-based chatbots.

This year at SuperBot 2018, BVP’s Jenny Gao asked us to think about the implications of voice by raising the question, “What does a generation of Alexa-raised kids look like?” People didn’t take to voice interfaces quickly, but consider the evolution of human interaction with technology: Consumers are instantly disappointed when they can’t zoom with their index finger and thumb. Next up, a voice-first world can’t be far off.

At CES this year, it wasn’t just The Alexa Show. If you really scrutinize the announcements, you’ll find that companies in the hardware, automotive, and home-security industries are enhancing their products with voice-controlled technology. In the big picture, it’s not a device war — it’s a battle to create the best consumer experience, and that experience will include voice.

Watch the full videos of presentations and panel discussions!

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