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We see three trends guiding the next wave of chatbot innovation.

Added together, these trends will generate more value for every company that adopts them.

A November 2018 chatbot study by Nielsen Norman Group framed the issue in these terms: “Interaction bots were usually easily identifiable as bots, but customer-service bots were harder to recognize.

Some businesses do not always disclose upfront to their customers that they are interacting with a bot. Our study participants were pleased when the business was transparent about using a bot because they could calibrate both their expectations and their language.”If you use chatbots and virtual agents at your company, manage expectations, so end users know if they’re dealing with a bot.

Before you create a virtual agent, make sure it will add value to the customer experience.

This type of bot is good for tasks where it's easier to ask for what you want rather than navigate through a menu or search for keywords.

The recent wave of chatbot innovation is focused on customer service and marketing.

So far, employees haven’t benefited much from chatbots, but that’s starting to change with internally oriented chatbots.

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In 2016, chatbots went mainstream with the rise of messenger bots.For example, Avatier’s Apollo has a chatbot that helps employees, managers, and other stakeholders with IT security administration.This means that employees no longer have to wait on hold to get password resets.Early chatbots were simply mechanically used pre-programmed questions and answers.That approach meant there was pressure on the company to think through all the possible scenarios.

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