This story was delivered to BI Intelligence Apps and Platforms Briefingsubscribers. To learn more and subscribe, please click here.[24]7, a company that develops chatbots for messaging apps and web sites, is expecting a significant uptick in revenue over the next 12 months, according to Reuters.The company projects its revenue to grow between 30% and 35% in the upcoming financial year, reaching up to $400 million by March 2018, CEO PV Kannan said.Improvements in AI have enabled chatbot makers to create more effective automated responses.This helps generate sales and boost user satisfaction. This, in turn, is driving up investments in chatbot companies, according to ROKO Labs research shared with BI Intelligence. Investments in the nascent chatbot industry grew 229% between 2015 and 2016. In comparison, investments in the much more matureapp industry during the same period grew66% YoY.Business-to-business (B2B) bots are proving especially attractiveto investors, more so than consumer-facing bots.Although consumer-facing chatbots, like those found on Facebook Messenger, have received a bulk of media attention, businesses appear to see more initial value in bots targeting B2B interactions ' such as an HR bot that can quickly retrieve internal data requests.Chatbots have the potential to help businesses significantly cut labor costs.While complete automation of thecustomer serviceworkforce is not feasible ' and in many cases, ineffective ' automating customer management and sales positions in the US where possible through chatbots and other automation technologies could result in considerable savings.Customer service management: 29% of customer service positions in the US could be automated through chatbots and other tech,accordingto McKinsey. BI Intelligenceestimates that this equatesto $23 billion in savings from annual salaries.Sales representatives: 36% of sales representative positions in the US could be automated, resulting in total annual estimated savings of at least $15 billion from salaries.Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots ' software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes.Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year theseconversational interactionstake off.Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer.The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, itcompares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.Here are some of the key takeaways:AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.Chatbots are particularly well suited for mobile ' perhaps more so than apps.Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies.Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.In full, the report:Breaks down the pros and cons of chatbots.Explains the different ways businesses can access, utilize, and distribute content via chatbots.Forecasts the potential impact chatbots could have for businesses.Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, you've given yourself a powerful advantage in your understanding of chatbots.Join the conversation about this story
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