How do chatbots work? Often with a little help from AI

Chatbots, powered by AI, are now mainstream, with the market set to hit $102B by 2026, up from $17B in 2020. Retail spending via chatbots is expected to jump to $142B by 2024, marking a 4,328% rise from 2019.

AI chatbots provide immediate responses so users feel "listened to," they can dramatically reduce wait times, and they capitalize upon consumers' preference for online chatting over calling 1-800 numbers and waiting. They also deliver higher conversion rates, often among customers who have abandoned their shopping carts — a major pain point in online retail. A perky chatbot, for example, can say, "Hey, you've got items sitting in your shopping cart! Buy them before they’re gone!