Not too long ago, chatbots were seen as fun additions to customer service. However, they have evolved significantly with advancements in AI, machine learning, and natural language processing. A recent report suggests that the chatbot market is set for substantial growth in the next decade. In 2021, it was valued at USD 525.7 million, and it is expected to grow at a remarkable compound annual growth rate (CAGR) of 25.7% from 2022 to 2030.
This makes the chatbot industry one of the most lucrative sectors in today's economy.
Let's take a trip back to 1999 and explore the journeys of platforms that have become major companies in today's market. In 1999, it took Netflix three and a half years to reach 1 million users for its DVD-by-mail service. Moving ahead to the early 2000s, Airbnb achieved this in two and a half years, Facebook in just 10 months, and Spotify in five months. Instagram accomplished the feat in less than three months in 2010.
Now, let's look at the growth of OpenAI's ChatGPT, the intelligent chatbot that debuted in November 2022 and managed to reach 1 million users in just five days. This is notably faster compared to the growth of other platforms.
What makes people so interested in chatbots? It is the exciting new possibilities they offer, even though there are worries about how they handle privacy and security, and concerns about potential misuse by bad actors.
We have had AI in our tech for a long time – think of Netflix and Amazon recommendations – but generative AI, like ChatGPT, is a different level of smart.
Chatbots work with a special kind of AI called a large language model (LLM). This LLM uses deep learning, which tries to mimic how the human brain works. Essentially, it learns a ton of information to handle different language tasks.
What's cool is that it can understand, summarize, predict, and create new content in a way that is easy for everyone to understand.
For example, OpenAI's GPT LLM, version 3.5, has learned from a massive 300 billion words. When you talk to a chatbot using plain English, you do not need to know any fancy code. You just ask questions, known as "prompts" in AI talk.
This chatbot can then do lots of things like generating text, images, video, and audio. It can solve math problems, analyze data, understand health issues, and even write computer code for you – and it does it really fast, often in just seconds.
Chatbots, powered by Natural Language Processing (NLP), can be used in various industries like healthcare, education, retail, and tourism.
For example, as more people use platforms like Zoom for education, chatbots can bring AI-enabled learning to students worldwide. Some hair salons use chatbots to book appointments, and they are handy for scheduling airport shuttles and rental cars too.
In healthcare, virtual assistants have huge potential. They can send automated text reminders for appointments, reducing the number of missed appointments. In rural areas, chatbots are helping connect patients with doctors through online consultations, making healthcare more accessible.
Let’s Understand What is Prompt Engineering Job
There is a new job in town called "prompt engineering" thanks to this technology. These are folks who know how to have a good chat with chatbots by asking questions in a way that gets the answers they want. Surprisingly, prompt engineers do not have to be tech whizzes; they just need strong problem-solving, critical thinking, and communication skills. In 2023, job listings for prompt engineers were offering salaries of $300,000 or even more.
