Conversational AI Doesn’t Have to Be a Risky Investment: Step 1
By Mandy Reed, Global Head of Marketing
In the technology industry there tends to be a focus on being innovative, cutting-edge, and ground-breaking. Industry awards, conferences, and articles frequently showcase and reward vendors for technological innovations. Analysts and expert speakers regularly highlight case studies of companies that are early adopters, deploying technologies in inventive ways, or finding success by taking a chance on something new and unproven.
Innovation is essential to the advancement of technology but doesn’t automatically equal practical business benefits. Having companies try out new technological developments and deploy existing solutions in creative and unfamiliar ways is important for finding practical applications for new innovations. However, being the organisation that deploys an innovative technology typically requires being comfortable with a high level of risk.
Most companies don’t have the financial flexibility or company culture to take that degree of risk, whether real or inferred. For them, proven and reliable results are more important than being innovative and flashy. Projects that get budget approval and management backing are ones that are considered safe bets because they utilise established technologies that have documented business benefits.
Conversational AI is one technology that is regularly described with words like ‘innovative’ and ‘cutting-edge’. Simply having ‘AI’ in the name makes some people think of it as being futuristic or only for companies with the resources to implement it for the cool factor. It can be easy for business leaders to associate conversational AI with being a high-risk investment.
Deploying conversational AI solutions like chatbots and virtual agents can be risky but doesn’t have to be. Your organisation doesn’t need to be an early adopter of new innovations to benefit from this technology. Chatbot and virtual agent technology has been used by businesses for over two decades as part of their customer experience and employee engagement strategies, and you can take advantage of those learnings to leverage conversational AI within your organisation.
Over the course of this three-part blog series, I’ll outline three steps for minimising risk and maximising benefits of conversational AI projects. Let’s get started with the first and most important step:
Step 1: Be selective when deciding on a vendor and technology.
The conversational AI market is oversaturated with new, inexperienced start-ups and technologies that haven’t been well-tested in the real world. The first step to reducing your risk is to choose a vendor that is established in the industry and provides a technology that has proven results. Both criteria are important when it comes to risk level.
Vendor experience is critically important because the more knowledge your selected provider brings to your project, the more confident you can be in their advice and guidance. You want a vendor that will become an extension of your own team and knows what they are doing because they’ve done it all before. Working with experts means you benefit from their many years of experience, thereby making your investment less risky even if your company is new to this type of technology.
When evaluating a vendor’s experience, ask specifically about how many years the company has provided conversational AI technologies, as these solutions may be an offering added recently even though the company has been in business for decades. Also ask about the experience of their individual team members and staff turnover rates. If they have high staff turnover and are constantly training replacements for departing employees, then you will likely miss out on the risk-reducing personal expertise you want the vendor to bring to the collaboration.
Just as critical as the vendor experience is having proof of their technology delivering positive results in real world applications. Don’t assume that just because a provider isn’t a brand-new start-up that they have a well-performing conversational AI technology. If the company has been in business for four or five years and only has one customer, you should question why more companies aren’t using their technology and if working with them is a risky option.
To reduce risk, ask about how the vendor has deployed their technology within your industry and what documented business benefits those solutions are providing. Saying they have the ability to deploy important features and functionality is great, but you want to see the technology in action in live installs. Also ask them about the length of their customer relationships as long-term engagements indicate that existing customers are happy with the technology, their results, and the collaboration. The vendor should be able to provide you with customer references so you can get first-hand feedback on their conversational AI projects.
Keep in mind that even if your company is minimising risk by selecting a proven solution with reliable results, you still want to partner with a vendor that is consistently innovating. You may not be the organisation trying out those new innovations first, but you don’t want to invest in a solution that’s not going to improve as those advancements become well-tested and are shown to deliver business benefits.
In my next post, we’ll explore building a realistic business case as part of Step 2 for reducing risk. In the meantime, check out the Guide to Selecting a Virtual Agent or Chatbot Vendor: Forget the Technology & Focus on Experience. It explains in more detail the most important questions to ask a vendor about their experience during your procurement process.