Impact of Chatbots on Business Efficiency and Revenue Growth

The analysis delves into how chatbots, powered by artificial intelligence, are revolutionizing businesses by streamlining operations, minimizing costs associated with customer support, and optimizing revenue. It discusses the implications of integrating chatbot technology across various industries, particularly in banking and healthcare, which are projected to benefit significantly from these advancements. By saving time per customer interaction, businesses not only reduce operational expenses but also enhance customer satisfaction and service efficiency. The assignment further evaluates statistical evidence supporting the potential for companies like SAS-Bots to double their revenue within five years by adopting chatbot technology. This research synthesizes insights from multiple sources on the transformative impact of AI-driven chatbots in contemporary business environments.

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DIGITAL AND KNOWLEDGE ECONOMY
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DIGITAL AND KNOWLEDGE ECONOMY
Technical Literature Review
Various studies conducted have indicated a positive increment in the invention, adoption,
and incorporation of new technologies into E-commerce. Technology has substantially become
the integral part of business success. According to Laudon and Laudon, (2015), the adoption of
new technologies such as chatbots have helped in cutting down the operational costs involved in
business dealings. Customers are able to get instant feedback from the company regarding the
questions of their concern. This is made possible by ability of chatbots to internalize and interact
with online customers. Furthermore, the chatbots are efficient as the work done does not
depreciate with time implying that the amount that would be paid for human resource/ customer
representatives are re-invested into more productive ventures. Research reports show that in
years to come, over 5 billion dollars will be saved as a result of using chatbots in business.
https://www.fatbit.com/fab/conversational-commerce-new-fad-online-businesses-
chatbots/

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https://blog.interakt.co/why-chatbots-are-the-next-big-thing-in-multilevel-marketing-
40705353d49f/
By incorporating internet/ online payment, SAS-Bots company can be able to engage in
an extensive business dealings. Reports from Huang and Benyoucef (2013) indicate that with the
use of secure internet banking and payment, bulk sums of money are simply transferred from one
account to another with little/ no hustle. This has eliminated the worry of counterfeit money as
well as the fear of robbery. With such a substantial advantage in the world of e-commerce, SAS-
Bots can gain a more (B2B) coverage as it can easily transact with its client from all over the
globe. Furthermore, it has indicated that the time spent in transaction is less; moreover,
bureaucratic documentation is also eliminated/ minimal.
In the figure below, Laudon and Laudon, (2015) developed a model that demonstrates the
effectiveness of the transactions; time taken, the requirements, and costs incurred.

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The invention and incorporation of mobile applicationsin SAS-Bots has tremendously
changed the way businesses communicate to clients. Huang and Benyoucef (2013 have it that the
introduction of mobile applications have changed business transactions of companies from E-
commerce to social commerce. There is minimal distance/ gap between the clients and the firm
as clients can directly order for goods of their wish at any time and from anywhere. The
company can take such advantage of building a more close and friendly dealing with its
customers. Production can be streamlined towards fulfilling customers demand in line with the
feedback collected. Huang and Benyoucef (2013) compared the relationship that existed in the
“old economy” and in “new economy” and the subsequent chart demonstrates their findings.
A comparison of the transaction relationship in the old and new economy

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How the company may make a difference by addressing the risks and problems in
digital marketing
For decades, there has been a consistently increasing use of technology in the world of
business and marketing in particular. A transformative business processes and improvement have
been realized and therefore, for any business enterprise to gain success in terms of long-term
survival, revenue maximization, and profit realization, it should adopt to the current dynamic
technological changes (Lu, Zhao and Wang, 2010, p.346).

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On the other hand however, the adoption of the dynamic technological changes have
substantially accelerated the level of risks in business. The risks come in form of information
hacking, client dissatisfaction, and fraud websites in the names of the company (Wang and
Zhang 2012, p.5).
The SAS-Bot company can develop a more open and comprehensive platform for
customers’ instant feedbacks and reviews to help in addressing the issue of increased customer
dissatisfaction. In other words, the company may adopt an instant online chat. By so doing, it
will be able to have a high customer retention as well as new clients. This subsequently implies
an increase in sales leading to increased revenue as well as company reputation. Recent research
findings have indicated an increase in customer dissatisfaction in digital marketing and this has
considerable affected the reputations and sales of respective companies (Piotrowicz and
Cuthbertson 2014, p.10). Some companies have websites that do not support customer online

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chat or rather lengthy hours to get the feedback and it has negatively affected “customer’s
comeback”.
Furthermore, ASA-Bots can employ latest and well-trained ethical hackers to test the
security safety of the company websites. Of late, large companies have lost information worthy
millions of dollars due to the high levels of hacking. Companies like Urber, amazon, EBay, and
Sony among others are some of the victims of hacking, which led to high levels of losses.
Therefore, a result of securing the firm’s confidential information as well as the customers’
database, it becomes simpler to overcome some of the likely consequences of hacking
(Venkatesh Thong and Xu 2012, p.57). Hacking may involves unknown frauds intruding into the
company database and deleting all the valuable company records, which may among others
include the shares held by respective company executives and shareholders. Losing information
of this kind would mean a typical loss to the company and hence, protecting/ securing the
company website contribute to the long-term survival of the company (Oliveira and Martins
2011, p.110).
Competitive advantage of SAS-Bot Company in the industry
Inventing and integrating of chatbots with various third party services and engines has
helped the company in providing customized usage of the bots in different fields and contexts. In
other words, the company’s ability to develop a flexible and multi-tasking artificial intelligent
bots gives a higher competitive advantage as compared to other firms in the industry. Conversion
and processing of massive client information into relevant information is made easy by the bots.
Moreover, the customized are able to vet and select relevant messages, audience, time, and the
most convenient channel of communication. Furthermore, the firm embarks in online

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advertisement through the use of ads and filtering to cover specific potential clients. These
strategies provides a competitive advantage to SAS-Bots in the industry.
Why the business is innovative
The ability to incorporate latest technologies such as ethical hacking and testing,
development of mobile application, and provision of instant customer care support for the
business definitely indicates a sense of innovativeness into the business (Liang and Turban 2011,
p.10).
Identify the strengths and weaknesses of your business
Basing on the fact that the backbone technology of our company is artificial intelligence,
SAS-Bots holds a higher competitive advantage in introducing and implementing the chatbots.
The fact that the company is able to utilize its products in initiating customer support, more costs
are cut as compared to others that will have to purchase the bots.
The ability of the firm to adopt and incorporate the latest technological change into the
business gives it an upper hand in competing with other main players in the industry. The ability
to have a considerable market shares provides a guarantee for long-term survival as well as
revenue maximization (Liang You and Liu 2010, p.1138).
Weaknesses
On the other hand, reports gathered regarding customer’s feedback on using chatbots in
online support indicate a negative trend although it is expected to gradually rise with time. There
is indication of customer dissatisfactions. However, with the innovations adjustments are being
made fit to fit the customers’ demand. Furthermore, the high level of competition that prevail in

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the industry has led to the low prices of the output in order to compete favorably in the industry.
the business is limited by capital insufficiency necessary for further deployment of tracking tools
to minimize the rate of fraudulent websites, expansion of production scale and making more
research for new inventions.
Possible extra revenue that may be earned as a result of incorporating technology
Latest reports from the UK-based Juniper indicate that, customer services will
substantially improve as a result of the chatbots. It is estimated that over $8 billion will be saved
by 2022 as a result of chatbot usage in businesses. The trend explains why businesses are
currently investing heavily in chatbots to ensure a reduction in the operational costs that arise as
a result of customer customer support as well as improving on the effectiveness of the business.
From the report, the banking and healthcare industries are expected to gain most from the

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adaptation of AI machines. An estimation of 4 minutes will be saved per customer query,
implying that approximately $o.6 dollars are saved per interaction.
The figure indicates the impact of Ads on revenue of companies
https://www.marketingcharts.com/advertising-trends-78426>

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Taking a critical analysis of the statistics in the preceding graphs and relating to SAS-
Bots Company, the company can be in position to attain a consistent growth and expansion in the
company revenues in few years to come. In other words, the company can be able to double its
revenue in just less than five years; this is an indication of high level of efficiency demonstrated
by the invention of chatbots and technology in general.

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