AI chatbots in marketing strategy

Abstract

In the post-digitalization era, marketing has undergone a significant transformation, merging interactions in both the digital realm and the physical world. This integration aims to enhance consumer engagement and involvement. To achieve this, marketers have turned to innovative technologies such as chatbots. Generative Artificial intelligence has revolutionized the world of chatbots and has use cases in various domains including marketing. Chatbots have evolved over the years, with their usage extending to various industries where companies interact with consumers and potential clients. With AI, these can understand user intent and generate responses based on predefined rules and regulations set by the firm. The development of chatbots has led to the dehumanization of what is human and the humanization of technology, creating a technological reflection of human behavior. This project report aims to explore the role of chatbots in marketing, specifically focusing on their impact on consumer satisfaction, emotional bonding, and journey with the brands. The report emphasizes on the most popular GenAi chatbot, ChatGPT, a language model developed by OpenAI. ChatGPT stands out as an advanced solution, exhibiting contextual comprehension within conversations and providing more accurate responses compared to existing chatbot solutions. The report discusses the cost-effectiveness of ChatGPT, as it can be used at a fraction of the expense of hiring human analysts. Additionally, the limitations and concerns associated with chatbots, particularly bias and misinformation, are addressed. The report highlights the importance of ensuring fair and unbiased responses by using training data that is free from bias. It also acknowledges the limitations of chatbots in providing accurate and verifiable information, making them less suitable for tasks that require factual accuracy. The project report concludes with expert interviews, providing insights from industry professionals on the impact and future of AI chatbots in marketing. The interviews shed light on the challenges faced by startups in the AI landscape, the strategic approaches for non-tech companies and how can they utilize AI chatbots at various stages of the marketing funnel. Overall, this project report aims to provide a comprehensive analysis of the role of chatbots in marketing, exploring their potential benefits, limitations, and future implications by examining various dimensions through a combination of existing research and future prospects.