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9 Definitive AI Chatbot Trends and Predictions for 2022

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9 Definitive AI Chatbot Trends and Predictions for 2022

We discuss 9 definitive AI chatbot trends, predictions and expectations for coming years. Dive in to find out the latest chatbot trends.

This year we published AI trends in MENA and Southeast Asia. We were all in for them, so we figured we’d stare into our looking glass again and give it a shot again – This time from next year’s perspective. 

2021 was a great year for conversational automation at large. With the pandemic flipping everyone over to the Internet’s side, AI became a handy tool for many online businesses.

The average chatbot today is far smarter than its counterpart a year ago. You can attribute this to major improvements in the four pillars of conversational engagement – Better NLU, NLG, NLP, and sentiment analysis.

The more chatbots interact with us, the better they’ll get.

So what can we expect in the coming years?

Suggested Reading: How To Formulate A Winning Conversational AI Strategy In 2022

1. Chatbots will be more human

One of the top chatbot trends for coming years is the technology becoming more empathetic. An oft-used term to predict the future of chatbots is “more human”. But what does it mean when experts say the future of chatbots will be more human?

“More human” is an umbrella term used to describe three technological advances in computational conversation.

chatbots trends 2022
Sentiment Analysis, Natural Language Processing, and Multilingual NLU will see major improvements.
  1. Sentiment analysis – Sentiment Analysis, also known as opinion mining is the process of extracting and thereby determining the emotional tone of the words used. One of the primary methods in which humans analyze sentiment is by body language. Over text, humans use emojis.
  2. NLP – Recent advances in deep learning has meant that natural language processing has developed in leaps and bounds. One of the main ways computer analyze human text today is tokenization; breaking up text into “tokens,” such as words. Using neural networks, computers can now take on word embeddings.
  3. Multilingual NLU – English is a common linguistic thread for most of the developed and developing world. However, different cultures put their own linguistic spin to it. From Spaniglish to Hinglish, these non-decipherable semantic distinctions are the next hurdle for Chatbots.

Suggested Reading: Top 100 Chatbot Statistics

2. The market will see more voice enabling

The rise of voice AI is under definitive chatbot trends. Voice recognition has changed the way we search and shop. Consumer preference for the sector is fairly evident. Consider the following statistics.

There are over 100+ million Alexa-enabled devices on the market right now.  The market is expected to further grow by 1000% percent. 27% of all mobile queries on Google are now voice enabled.  For 2021 and beyond, that number is expected to jump to over half of all mobile queries.

While Amazon’s Echo’s and Google Home’s are classified under “virtual assistant”, expect a push towards a middle ground this year.

Imagine a world where you’re in a cab on your way home. Simply text Alexa to turn up your central heating to prepare for you. Once you’re at home, you can say, “Hey Alexa, turn the temperature up by 2°C.”

chatbot trends: home assistant devices

Expect the functionality of chatbots to increase drastically. I fully anticipate the little icons on the bottom right of your screen to feature full voice functionality.

3. More consumer-facing developments

Companies usually buy chatbots that they use to interact with their customers. In the business world, this is called a ‘B2B Industry’.

But Google’s Duplex demo broke those walls. It showed us that there are a lot of easily automatable interactions in our day to day lives.

Chatbots will be the next major element of technology democratization.

While they won’t be able to pick up your laundry (I, Robot style), I foresee a future where a lot of people will have a personal chatbot that can handle mundane conversations.

Just like with the PC, advancements in technology and reductions in price will allow chatbots to be democratically distributed amongst the general public.

4. Companies will have more data

According to an IDC Digital Universe study, the amount of digital data created per year would be 35 zettabytes. (1 ZB = 1 billion TB)

As chatbots become a staple of businesses’ digital offerings, companies will start competing amongst themselves for the best strategies.

more data chatbot trends 2022
Chatbots growth statistics can give companies far more actionable insights.

Chatbots trends will be integrated into existing data architectures. Metrics like conversation duration and bot retention will be thrown around the same way webpage conversion and traffic are.

Chatbots analytics can combine real-time conversations with historical precedence to give you deep and actionable insights.

The industry will move beyond simple data points like chokeholds or conversational hurdles to intent understanding and emotional output.

5. More C-UX and job roles

One of the latent changes that come with the establishment of a new industry is the emergence of new job roles and thought leaders.

Conversational User Experience (CUX) aims to create technology that can seamlessly interact with humans. CUX includes brand persona development, personalized content, and guided conversations.

Great UX reflects what customers need and what customers want.

As the goalpost for the ideal user experience changes, the people you hire to score those goals will change too.

The mass adoption of websites and apps moved the concentration of power from coders to designers. And as the conversation becomes an integral part of a users experience, new blood will enter the market.

Linguistic experts will determine how the system should respond to each question or request, and design optimal conversational systems. The fields main purpose will be to help the user reach their end goal as quickly as possible, all while delivering the best experience for them.

6. More chatbot apps

Chatbot apps have grown increasingly popular.

When we speak of mobile apps, Google and Apple both charge a 30% “store tax” for games released through its stores – for both for the initial sale of apps, as well as any supplementary in-app purchases.

Apple and Google form a duopoly, by virtue of which they exert disproportionate power on the market. If you have a great idea for a mobile app or game, there is simply no other way to reach your audience.

I’m not going to say that apps will die out soon. That’s ludicrous. However, slowly, but surely, the tides are changing.

Over 6 times! Over 6 times is what the global chatbot market will grow, from 2016 through 2025 – Previously standing at $190 million to $1.25 billion in 2025!  

As app market becomes more saturated and chatbot trends look more promising, it will make more and more sense for larger organisations to focus on AI-powered workflows for their business strategy.

7. More chatbot use cases

Chatbots are used in a lot of industries. Upcoming chatbot trends suggest their functionalities and adoption is increasing.

Most notably, expect chatbots to increase in their scope of internal corporate use.

Take, for example, Human Resources. HR is one of the most essential internal factors in a company’s long-term success.

HR bot using Verloop
A sample of an HR bot using Verloop.io

While hiring often takes center stage, your HR team is responsible for a million other duties that directly influence your bottom line but aren’t as visible as hiring. These could be responsibilities like legal compliance systems, audits, conflict resolution, policy creation, streamlining, training and leadership development.

Research has found that between 40-50% of HR time is spent handling talent management and responding to internal queries and questions. This takes away from your teams time, time that could be better spent on planning, strategizing, recruiting and developing talent.

With an HR chatbot, you can handle everything from employee query resolution to candidate qualification.

Suggested Reading: Chatbots: Applications, Use-cases & Templates

8. More trust on paying through chatbots

2020 and 2021 completely threw commerce online. Everything sort of became e-commerce as more businesses started setting up their online stores to ensure shopping remained as smooth for their customers.

Since more brands are shifting towards conversational automation and social commerce, their chatbots would evolve too. Many AI chatbot providers will come with robust payment integrations and gateways like Paypal, PayU, CCAvenue, Razorpay, Stripe, etc that will make conversions a lot easier for brands and users alike. 

9. More businesses save on operating costs

The pandemic fuelled an unexpected increase in the number of online purchases, which also caused an upsurge in the number of support tickets. Customer support can be an expensive affair with the number of users calling in increases exponentially but the number of support agents stays the same. 

Businesses are using AI chatbots to keep up with the increase in call volumes. Juniper Research expects that businesses will save $8 billion by 2022 using AI-powered chatbot technology.

Over the course of 2022, consumers will likely be able to interact with most businesses using AI chatbots as adoption increases. More businesses will integrate AI into their systems to help their customer support become more efficient and productive.

8. Bonus – more regulation

As chatbots become the new norm, expect legislation to catch up. 

Given that chatbots need to horde data to improve their conversational capabilities, 2022 will present a year of stand-offs.

Security and data privacy will also become more and more relevant for big enterprises.

Google, Amazon, Microsoft all have their own version of bot builders. The three firms use their vast troves of actionable data to make their own products better.

Expect a conversation about letting these large players own their conversational data, for data mining and data collection. Also, expect more solutions with on-prem services for customers who’re concerned about their data.

In summary

2022 is expected to be a great year for the AI chatbot industry as these chatbot trends will drive adoption and innovation in the sector. 

Chatbots are going to be more natural than ever with cutting-edge NLP algorithms with a robust dataset of interactions. The upcoming year might go down in history as the year when voice-enabled AI chatbots took the world by a pleasant storm making customer support more intuitive than ever before. 

It will also create many jobs for coders, designers and data science professionals. As the industry continues to scale up, the number of developers in the ecosystem will also increase, allowing the technology to serve more use cases. 

2022 brings a lot of promise with it for thousands of businesses that are looking to make their customer support systems more efficient. And it’s just the beginning of what’s about to come in the coming years!

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