Chapter 21: the chatbot revolution: companies and consumers in a new digital age

Chatbots are seen as something of a magic wand for both companies and consumers. They may enable companies to improve customer service and gather vast amounts of accurate data, while giving consumers a better experience as they engage with brands in a customised way. Chatbots can understand everyday language and respond by imitating human-to-human conversations. These anthropomorphic attributes, along with other advances in AI sophistication, have accelerated the commercialisation and prevalence of chatbots. This chapter explores chatbots as a form of evolving technology, provides a comprehensive understanding of their role in digital marketing, and sets out the academic theories associated with their use. It then theorises that machine learning processes are similar to those of humans, before exploring the big data being generated. After discussing the remaining challenges and obstacles to their wider use, conclusions are drawn about the likely future course of e-agents, with the intention of guiding researchers and practitioners into the next generation of AI advances.