AI

Bursting the chatbot bubble

Comment

Image Credits: Atomic Imagery

Arun Uday

Contributor

Arun Uday is a former VC and currently the founder of Tring Chat, a mobile group chat app that allows users to search and join chat groups of interest to them.

Chatbots seem to be climbing the proverbial peak of the tech hype curve with every passing day. Popular messaging apps have been attempting to outdo each other in terms of making their platforms open for bot development. Businesses are also rushing to embrace them, as evidenced by the interest they are eliciting from even staid institutions such as centuries-old banks.

The frenetic action notwithstanding, the moot point, as always, is whether bots actually solve any real end-user need. The answer to that is not as clear as the chat platforms and businesses themselves would have us believe.

Firstly, in most instances, the effort needed for completing tasks through chat is greater than simple clicks on UI menus. Add to that the superior aesthetics and visual appeal of a UI versus plain text (as with chatbots) and the case for a manual keyboard-driven input format becomes even harder to defend.

Secondly, there is also the risk of misinterpretation as chatbots suffer from inaccuracies in understanding a user’s request. I had the privilege of attending a talk by Bill Gates in 2000 when he was in India. After the talk, one of the questions asked of him was his view on the future of technology. He replied that in the future, he saw no need for a keyboard and that users would use computers by just talking to them. PCs would be intelligent enough to understand the instructions and act accordingly. He shared that Microsoft was investing a lot of research dollars into AI, speech recognition and the like (which later got rolled into their cognitive services offerings). Fast-forward 16 years — millions of dollars and some of the best brains working on it didn’t prevent their showcase chatbot from going berserk in less than 24 hours of deployment.

Don’t get me wrong — this is not meant to be a taunt on their technical competence, but rather a mere reflection on the complexity of the problem. That’s the reason I find it bemusing that not only are chatbot developers springing up like mushrooms in the monsoon season, but businesses are also actually eager to avail of their services sans any credible evidence of a real user need for them.

Think about it. Why would anybody want to replace an existing setup that is 100 percent accurate and takes less effort to use (i.e. UI-driven menus) with something that is inaccurate and requires more effort to use (i.e. chatbots)?

Finally, there also is the danger of uncontrolled proliferation of bots. One of the contributing factors for the fall from grace of Yahoo messenger, the most popular IM service of yesteryear, was its inability to deal with the spam unleashed by its bots. In fact, so bad was the problem that it forced Yahoo to contrive the now familiar captcha code to prevent bots from automatically entering chat rooms. It also inspired academic researchers to develop techniques for distinguishing bots from humans.

So, does all this mean that AI/ML/NLP have no place in the emerging tech landscape? No, there will be use cases where we will see many such genuinely useful applications being developed.

Some of my bets would be in such areas as personalization, intelligent discovery, AR/VR, etc. — but not chatbots as customer service reps or order-taking agents. In fact, all experience suggests quite the opposite. When a customer has an issue, they would most likely want to skip automated response options and speak to a real person who can fix their problem — not chat with a semi-intelligent bot dishing out some canned responses.

As with most advances in technology, once the current euphoria on bots dies down, we will see the emergence of real solutions to real problems coming out of the chat ecosystem. Or to borrow from a popular adage, my prognosis would be: Chatbots are dead on arrival, long live chatbots!

More TechCrunch

Apple is bringing new accessibility features to iPads and iPhones, designed to cater to a diverse range of user needs.

Apple announces new accessibility features for iPhone and iPad users

TechCrunch Disrupt, our flagship startup event held annually in San Francisco, is back on October 28-30 — and you can expect a bustling crowd of thousands of startup enthusiasts. Exciting…

Startup Blueprint: TC Disrupt 2024 Builders Stage agenda sneak peek!

Mike Krieger, one of the co-founders of Instagram and, more recently, the co-founder of personalized news app Artifact (which TechCrunch corporate parent Yahoo recently acquired), is joining Anthropic as the…

Anthropic hires Instagram co-founder as head of product

Seven orgs so far have signed on to standardize the way data is collected and shared.

Venture orgs form alliance to standardize data collection

As cloud adoption continues to surge towards the $1 trillion mark in annual spend, we’re seeing a wave of enterprise startups gaining traction with customers and investors for tools to…

Alkira connects with $100M for a solution that connects your clouds

Charging has long been the Achilles’ heel of electric vehicles. One startup thinks it has a better way for apartment dwelling EV drivers to charge overnight.

Orange Charger thinks a $750 outlet will solve EV charging for apartment dwellers

So did investors laugh them out of the room when they explained how they wanted to replace Quickbooks? Kind of.

Embedded accounting startup Layer secures $2.3M toward goal of replacing Quickbooks

While an increasing number of companies are investing in AI, many are struggling to get AI-powered projects into production — much less delivering meaningful ROI. The challenges are many. But…

Weka raises $140M as the AI boom bolsters data platforms

PayHOA, a previously bootstrapped Kentucky-based startup that offers software for self-managed homeowner associations (HOAs), is an example of how real-world problems can translate into opportunity. It just raised a $27.5…

Meet PayHOA, a profitable and once-bootstrapped SaaS startup that just landed a $27.5M Series A

Restaurant365, which offers a restaurant management suite, has raised a hot $175M from ICONIQ Growth, KKR and L Catterton.

Restaurant365 orders in $175M at $1B+ valuation to supersize its food service software stack 

Venture firm Shilling has launched a €50M fund to support growth-stage startups in its own portfolio and to invest in startups everywhere else. 

Portuguese VC firm Shilling launches €50M opportunity fund to back growth-stage startups

Chang She, previously the VP of engineering at Tubi and a Cloudera veteran, has years of experience building data tooling and infrastructure. But when She began working in the AI…

LanceDB, which counts Midjourney as a customer, is building databases for multimodal AI

Trawa simplifies energy purchasing and management for SMEs by leveraging an AI-powered platform and downstream data from customers. 

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

Lydia is splitting itself into two apps — Lydia for P2P payments and Sumeria for those looking for a mobile-first bank account.

Lydia, the French payments app with 8 million users, launches mobile banking app Sumeria

Cargo ships docking at a commercial port incur costs called “disbursements” and “port call expenses.” This might be port dues, towage, and pilotage fees. It’s a complex patchwork and all…

Shipping logistics startup Harbor Lab raises $16M Series A led by Atomico

AWS has confirmed its European “sovereign cloud” will go live by the end of 2025, enabling greater data residency for the region.

AWS confirms will launch European ‘sovereign cloud’ in Germany by 2025, plans €7.8B investment over 15 years

Go Digit, an Indian insurance startup, has raised $141 million from investors including Goldman Sachs, ADIA, and Morgan Stanley as part of its IPO.

Indian insurance startup Go Digit raises $141M from anchor investors ahead of IPO

Peakbridge intends to invest in between 16 and 20 companies, investing around $10 million in each company. It has made eight investments so far.

Food VC Peakbridge has new $187M fund to transform future of food, like lab-made cocoa

For over six decades, the nonprofit has been active in the financial services sector.

Accion’s new $152.5M fund will back financial institutions serving small businesses globally

Meta’s newest social network, Threads, is starting its own fact-checking program after piggybacking on Instagram and Facebook’s network for a few months.

Threads finally starts its own fact-checking program

Looking Glass makes trippy-looking mixed-reality screens that make things look 3D without the need of special glasses. Today, it launches a pair of new displays, including a 16-inch mode that…

Looking Glass launches new 3D displays

Replacing Sutskever is Jakub Pachocki, OpenAI’s director of research.

Ilya Sutskever, OpenAI co-founder and longtime chief scientist, departs

Intuitive Machines made history when it became the first private company to land a spacecraft on the moon, so it makes sense to adapt that tech for Mars.

Intuitive Machines wants to help NASA return samples from Mars

As Google revamps itself for the AI era, offering AI overviews within its search results, the company is introducing a new way to filter for just text-based links. With the…

Google adds ‘Web’ search filter for showing old-school text links as AI rolls out

Blue Origin’s New Shepard rocket will take a crew to suborbital space for the first time in nearly two years later this month, the company announced on Tuesday.  The NS-25…

Blue Origin to resume crewed New Shepard launches on May 19

This will enable developers to use the on-device model to power their own AI features.

Google is building its Gemini Nano AI model into Chrome on the desktop

It ran 110 minutes, but Google managed to reference AI a whopping 121 times during Google I/O 2024 (by its own count). CEO Sundar Pichai referenced the figure to wrap…

Google mentioned ‘AI’ 120+ times during its I/O keynote

Firebase Genkit is an open source framework that enables developers to quickly build AI into new and existing applications.

Google launches Firebase Genkit, a new open source framework for building AI-powered apps

In the coming months, Google says it will open up the Gemini Nano model to more developers.

Patreon and Grammarly are already experimenting with Gemini Nano, says Google

As part of the update, Reddit also launched a dedicated AMA tab within the web post composer.

Reddit introduces new tools for ‘Ask Me Anything,’ its Q&A feature