Seeing Business Differently: The Real Impact of Augmented Reality

Originally published June 2019. Updated July 2024 If the customer is always right, and the customer experience journey continues to increase in complexity, finding the best ways to serve individuals at scale—well, that just gets more challenging by the day. Can we find a solution in AI chatbots? Digital product designers are at the forefront of this challenge, working to translate cutting-edge AI capabilities into tangible benefits for real users. While we constantly seek the next big innovation, we also evaluate its potential to improve the customer experience. In the larger AI ecosystem, the brand-forward chatbot has an emerging story and a potentially exciting future. Once viewed as simple customer service tools, chatbots powered by AI are increasingly seen as powerful communication tools in their own right. Intelligent Customer Engagement Businesses, organizations, and governments are shifting their approach to user interaction in tandem with technological advancements. Chatbots are no longer just about answering FAQs. They’re becoming the frontline of personalized customer experiences, sales, and product development. Semrush reports the following AI statistics: 80% of marketers had chatbots in their customer experience strategy. 40% of businesses reported customer experience as the top motivation for using AI. Chatbots responded to 85% of customer service interactions. These numbers indicate a significant shift towards AI-powered customer engagement. But how are different sectors leveraging this technology? As the adoption of AI chatbots grows, the vision for their future becomes increasingly important. Industry leaders are already contemplating how these tools will shape customer interactions. Government-Powered AI Chats The UK Government Digital Service has been experimenting with AI-powered chatbots for its GOV.UK Chat solution. CX Today reports that their findings show promise: 70% of respondents found the bot replies useful. 65% were satisfied with the overall experience. However, the bots were not immune to hallucination, where the system provided incorrect information as fact. There’s potential for the technology to “have a major, and positive, impact,” Chris Bellamy, Director of GOV.UK shared in Inside GOV.UK. Bellamy writes: “The government has a duty to make sure it’s used responsibly, and this duty is one that we do not take lightly.” AI Insurance Correspondence For a growing number of doctors, AI chatbots—which can draft letters to insurers in seconds—are opening up a new front in the battle to approve costly claims, accomplishing in minutes what years of advocacy and attempts at healthcare reform have not. According to the New York Times, Dr. Tariq said Doximity GPT, a HIPAA-compliant chatbot version, had halved the time he spent on prior authorizations. Maybe more importantly, he said, the tool—which draws from his patient’s medical records and the insurer’s coverage requirements—has made his letters more successful. Since using AI to draft prior authorization requests, he said insurers have approved about 90% of his coverage requests, compared with about 10% before. Improving Empathy in Efficient Healthcare A study by New York University’s Grossman School of Medicine suggests that AI chatbots could “reduce the workload of care providers by enabling efficient and empathetic responses to patients’ concerns,“ according to lead study author William Small, MD. The same study revealed that generative AI responses outperformed human providers in terms of understandability and tone by 9.5%. Virtual Assistants for Banks—& More Bank of America’s Erica, an AI-powered virtual financial assistant, helps customers with various banking tasks and provides personalized financial advice. Bank of America reported that since its launch, the assistant has handled over 1 billion interactions, and more than 98% of clients get the answers they need using Erica. Wells Fargo’s assistant, Fargo, powered by Google’s AI, has also been a boon to the bank’s adoption of AI tech. Despite rigorous financial privacy regulations, according to VentureBeat, Wells Fargo has enrolled 4,000 employees in Stanford’s Human-centered AI program and is already executing “numerous” generative AI projects, focusing on enhancing back-office efficiency. By exploring these real-world applications, we can see how AI chatbots are indeed providing solutions for complex customer engagement at scale while also identifying areas for improvement and future development.  Concerns & Mitigations AI chatbots offer promising solutions for customer engagement, but their implementation comes with risks. Recent examples highlight the need for careful consideration and robust safeguards. Cautionary Tale: NYC’s MyCity Chatbot Misstep CX Today reported that the Mayor of New York City was forced to defend the city’s “MyCity“ chatbot following a series of significant errors. Most notably, it advised some users to break the law by answering questions such as: “Do I have to accept tenants on rental assistance?“and: “Are buildings required to accept section 8 vouchers?“ with a definitive “no. “ The bot deduced that landlords are not mandated to accept these tenants. In New York City, it is unlawful for landlords to display prejudice based on the source of income, except in small buildings where the landlord or their family resides. Accuracy & Legal Implications This incident underscores how AI chatbots can inadvertently provide incorrect or even illegal advice, potentially exposing organizations to legal risks. Ethical Considerations & Public Trust Chatbots may reinforce biases or discriminatory practices if not properly designed and monitored. Errors like those in the NYC case can significantly damage public trust in government services and AI technologies. Technical Note: Understanding Chatbot Intelligence Modern AI chatbots often combine multiple technologies to provide more natural and effective interactions: Natural Language Processing (NLP): Helps chatbots understand user input by analyzing keywords and intent. Generative AI: Enables chatbots to create human-like responses through large language models (LLMs) that can adapt to conversation context. While some simpler chatbots (like basic FAQ or weather bots) might rely primarily on NLP, most advanced customer engagement solutions combine these and other AI techniques to provide more sophisticated, context-aware interactions. Is it too early for Gen AI with large language models where accuracy is crucial? Or should they begin with a predictable chatbot using NLP? This question highlights the ongoing debate about balancing innovation with reliability, especially in high-stakes environments like government services. Mitigating Risks AI chatbots can significantly improve efficiency, but responsible technologies are designed to augment human intelligence. The goal should be to allow customer service professionals to focus on more complex, high-value interactions requiring unique human skills such as empathy and nuanced problem-solving. To address these concerns, organizations implementing AI chatbots should: Conduct rigorous testing across a wide range of scenarios before public deployment. Implement ongoing monitoring through regular audits of chatbot responses. Provide clear disclaimers informing users of AI interaction and the potential need for verification. Establish human oversight, especially for sensitive topics. Ensure continuous learning by regularly updating the chatbot’s knowledge base. Addressing Bias in AI Chatbots Furthermore, because bias in AI chatbots can stem from various sources such as data, algorithms, and user interactions, a significant focus should be on effective mitigation strategies. Here are key approaches to address and prevent bias: Ensure data quality and diversity. Use diverse, high-quality data sets for training, actively including data from underrepresented groups. Implement algorithmic fairness. Employ techniques to identify and remove bias from the algorithms themselves. Maintain human oversight. Regularly monitor chatbot interactions to identify and address emerging biases. Promote transparency. Inform users they’re interacting with a chatbot and be clear about its limitations. Apply an empathy-driven approach. Keep the needs and experiences of end-users at the forefront of development. Conduct regular bias audits. Implement ongoing testing to identify and address potential biases in chatbot responses. Diversify development teams. Ensure your AI development team represents diverse perspectives and backgrounds. Resources for Digital Executives AI Fairness 360 (AIF360) Toolkit: An open-source toolkit to help detect and mitigate bias. Google’s Responsible AI Practices: A guide for implementing AI responsibly. Microsoft’s Responsible AI Resources: Tools for developing AI systems ethically. The Ethics of AI Ethics: A research paper analyzing various AI ethics guidelines. IEEE’s Ethically Aligned Design: A guide for prioritizing ethics in AI systems. The Future of AI Chatbots: Transforming Customer Engagement On the horizon, AI chatbots are set to revolutionize business-customer connections even further. Some of these capabilities are already emerging, and their sophistication and widespread adoption are expected to increase. Enhanced Emotional Intelligence Current chatbots can detect basic sentiment, but future versions may be able to respond more nuancedly to complex emotional states, significantly improving customer satisfaction. Advanced Predictive Support Building on current predictive capabilities, future chatbots may anticipate customer needs with greater accuracy, potentially resolving issues before they arise. Seamless Omnichannel Integration Current chatbots operate across multiple channels, but future iterations will likely provide a more consistent experience across all customer touchpoints, from text to voice to visual interfaces. Hyper-Personalization Current chatbots offer some degree of personalization, but future versions may create experiences that feel uniquely tailored to each individual, even when serving millions of customers. Advancing Your Customer Engagement Strategy Thoughtful integration of AI chatbots into your customer engagement strategy has the potential to enhance customer satisfaction. When formulating a chatbot strategy, we recommend keeping these points in mind: Start with a clear vision of how chatbots align with your overall customer experience goals. Prioritize data quality and ethical considerations from the outset. Plan for continuous learning and improvement of your chatbot systems. Make sure to stay updated on new developments and be ready to adjust your approach. As Mark Zuckerberg aptly noted: “We think people want to interact with lots of different people and businesses, and there need to be a lot of different AIs that get created to reflect people’s different interests.“ We also envision an AI approach driven by empathy, where the needs and experiences of end-users stay at the forefront. We prioritize ethical considerations, transparency, and thorough testing to ensure positive and trustworthy customer interactions.  The AI Chatbot Imperative: Embracing the Future of Customer Engagement The future of customer engagement is increasingly conversational, personalized, and AI-enhanced. Embracing new technology enables businesses to build better customer connections, drive efficiency, and fuel innovation with valuable insights. The path to AI-powered customer engagement may be complex. Still, the potential rewards—customer satisfaction, operational efficiency, and competitive advantage—may make it a journey worth taking. As you contemplate your AI chatbot strategy, ask yourself:  How can AI chatbots not just meet but exceed your customers’ expectations?  What unique value can your brand offer through this technology? Do you have the tools and partners to balance technical and user-centric design? The answers to these questions could define your competitive edge in the AI-driven future of customer engagement.

We often picture flashy gadgets and futuristic concepts when we think of technology disruptions. But the true power of innovation lies in the quieter, often unnoticed, ways it makes our world more efficient, sustainable, and interconnected. IoT, once a buzzword, is now an integral part of our lives, seamlessly blending into our daily routines. Whether it’s a quick “Hey Alexa” echoing through our homes or the cooling breeze from a Nest thermostat, IoT has become the unseen infrastructure powering countless innovations in our personal and professional lives. The Ubiquitous Nature of IoT IoT’s presence in our lives is so pervasive that it often operates in the background, almost unnoticed. As industry expert David Howard aptly puts it in Network World:  “When I do my job right in IoT, people shouldn’t really know that I’ve done anything at all.”  This invisible integration is evident in various applications: Smart Cities: IoT powers intelligent street lighting, efficient waste management, and traffic optimization systems. Healthcare: Connected devices monitor patient health in real-time, optimizing hospital operations and improving patient care. Industrial Sectors: IoT enhances manufacturing, logistics, and energy management efficiency, driving the next phase of industrial transformation. The Scale of IoT’s Impact The numbers speak volumes about IoT’s growing influence: Global Spending: IoT spending reached $805 billion in 2023 (Statista). Economic Value: The potential economic value of IoT could hit $12.5 trillion globally by 2030 (McKinsey). IIoT Market Growth: The Industrial Internet of Things (IIoT) market alone is forecast to reach $525.2 billion by 2028 (ITPro). Despite its vast potential, the fragmented nature of the IoT market presents significant opportunities for agile startups and innovative digital products to capture market share. How IoT Apps Are Impacting Business & Personal Life In Business Enhanced Operational Efficiency IoT is transforming how businesses operate and make decisions. For instance, our work with Freedom Solar Power demonstrates how real-time data visualization can drive business intelligence, enabling businesses to optimize their operations while showcasing their commitment to sustainability. Predictive Maintenance IoT sensors in industrial equipment can predict failures before they occur, minimizing downtime and reducing maintenance costs. This proactive approach is revolutionizing industries from manufacturing to transportation. Supply Chain Optimization IoT-enabled tracking systems provide real-time visibility into inventory levels and shipment locations, allowing businesses to streamline their supply chains and respond quickly to disruptions. In Personal Life Smart Home Convenience IoT is making our homes more comfortable and efficient. For example, the app we developed for ēdn’s SmallGarden allows users to grow plants with minimal effort. Smart gardens like these are just one example of IoT enhancing our living spaces. Health & Wellness Management IoT devices are revolutionizing personal health management. From smartwatches that track fitness to specialized devices like the mobility apps we’ve helped develop, IoT empowers individuals to take control of their health and well-being. We created an IoT app for a wheelchair manufacturer that pairs powered wheelchairs with Bluetooth. This app facilitates wheelchair movement, allowing users to change their position throughout the day—critical for preventing sores and other complications. The app notifies users when it’s time to change positions and offers personalized adjustments, focusing on accessibility with a simple, intuitive design. Energy Conservation Smart thermostats and energy monitoring systems help homeowners reduce their energy consumption and costs, contributing to a more sustainable future. Bridging Business & Personal Life Remote Work Enablement IoT blurs the lines between office and home, enabling seamless remote work experiences. These technologies are reshaping how and where we work, from smart lighting that optimizes your home office environment to IoT-enabled security systems that protect sensitive data. Personalized Experiences IoT enables unprecedented levels of personalization in both business and personal contexts. Retailers use IoT to create tailored shopping experiences, while at home, IoT devices learn our preferences to create personalized environments. Urban Living Improvement Smart city initiatives use IoT to enhance urban living, from improving traffic flow to monitoring air quality, making our commutes and leisure time more enjoyable. The Future & Promise of IoT As we continue to innovate in the IoT space, the boundary between business and personal applications will likely become increasingly blurred. The key to successful IoT implementation lies in creating solutions that seamlessly integrate into our lives, enhancing our capabilities without adding complexity. At InspiringApps, we believe the true power of digital products is not in the technology itself but in its ability to solve real-world problems. The most exciting IoT innovations will likely come from unexpected places—from creative thinkers who see beyond the technology to the human needs it can serve. The question isn’t just “What can we connect?” but “How can we create value?” and “Why?”