Why Cryptocurrency Exchanges Need a Conversational AI Strategy
Artificial Intelligence and blockchain technology have undeniably been two of the most critical technologies that have revolutionized the pace of innovation and have acquainted every industry with radical shifts.
The cryptocurrency market has seen a boom over the last couple of years. Valued at $1.49 billion back in 2020, the cryptocurrency industry has recently breached the $3-billion mark, defying expectations and expert predictions.
According to predictions, the market size for cryptocurrencies will reach $4.94 billion by 2030. Anyone familiar with cryptocurrencies understands that they are a novel asset class, the fundamentals of which are hard to grasp. At the core of the crypto customer experience are the major crypto exchanges like Coinbase, Binance, Kraken.
While it’s no surprise that cryptocurrency was among the first industries to respond to technological innovation, there is a lot more diversity regarding what led to the emergence of crypto exchanges.
Understanding Conversational AI
Conversational AI refers to technologies that enable computers to understand, process, and respond to spoken or written inputs naturally. It helps people interact with complex systems faster and easier and helps businesses deliver personalized engagements and support at scale. By replacing traditional UIs with human-like dialogues, companies can make customer experiences simpler and more intuitive, making employee workflows faster and more efficiently.
AI & Cryptocurrency Market
We expect the development of artificial intelligence to have a massive impact on the growth of the cryptocurrency market. The crypto exchanges have been growing massively over the past few years, attracting new clients worldwide.
Among many reasons why the market is becoming so popular is that it is effortless for newcomers to get started in the crypto industry. There are numerous crypto exchanges in the market that offer traders the opportunity to take advantage of cryptocurrencies. This is a very rational offer for those who do not have enough time to constantly monitor the market or do not have enough knowledge and experience in crypto trading.
The crypto market already uses AI extensively today. Still, many experts believe that this is just the beginning, and the adoption of AI by the crypto exchange will continue to grow massively in the upcoming years.
5 Ways Conversational AI is Transforming the Crypto Exchanges and Industry
Cryptocurrencies, as well as blockchain technology, have many limitations despite their tremendous power. While some are technology-related, others result from the old-minded culture that the financial services sector bred for ages. However, all of them can be affected by AI in some way.
The following are the top 5 ways conversational AI is transforming the crypto exchange and industry -
Mining doesn't scale very well. Thus, it is vital to invest in more and newer machines to boost profits. Sometimes you have to invest to stay above break-even. However, Conversational AI can bring forth new decentralized learning systems like federated learning to enhance overall efficiency. The use of new data shading techniques can also go a long way in ensuring scalability goals are met to the fullest.
While the blockchain network is nearly impossible to hack, its subsequent layers lack adequate security features. Conversational AI fills this void. Machine learning has advanced rapidly over the past couple of years. It makes Conversational AI the perfect ally for the blockchain to secure applications, especially considering the system’s fixed structure.
3. Energy Consumption
The process of mining cryptocurrency is incredibly challenging and takes an unreasonable amount of energy and money to execute flawlessly. Conversational AI already has proved its efficiency in optimizing energy consumption, and there remains little doubt over Conversational AI achieving similar results for crypto mining.
Personal data ownership often raises concerns for competitive advantage due to privacy issues. The interconnectedness of privacy issues with scalability and security means that it goes hand-in-hand with their problems. As a result, combining Conversational AI with crypto exchange will ensure that its anonymity is not jeopardized.
In order to reduce cost, miners may compromise on their efforts for a specified operation. An intelligent system might compute the probability of particular nodes performing a task instantly. Furthermore, despite some structural limits, faster transactions can be achieved through improved efficiency and lower energy consumption, which may result in a decrease in network latency.
The Challenges Faced by the Consumers of Cryptocurrency
The reality is that most crypto exchanges provide a poor customer experience. Even market leaders in the space offer limited customer service, providing support only through traditional phone and email channels, typically with delayed responses.
The support agents are frequently unavailable 24/7, or the customer is put through the drill of waiting or reaching out at another suitable time. The absence of human agents can be daunting for the customers. In a highly digital world where consumers expect companies to be available 24/7 across all channels, platforms, and devices, the prevailing customer support infrastructure in the crypto industry as a whole is already behind the times and needs to be ramped up to scale.
The Solution – Conversational AI
Conversational AI is the game-changer required to improve crypto customer experience and deliver excellent support that fosters trust and confidence among crypto users. However, nearly all crypto exchange companies do not appear to have conversational AI strategies in place.
Let’s look at how conversational AI-powered virtual agents are assisting in the transformation of the cryptocurrency industry:
An automated conversational AI-powered virtual assistant aids in the elimination of tedious parts of the job like managing multiple queries at once and removing repetitive or mundane tasks from a support rep’s plate.
Virtual agents are available 24/7. A virtual agent is a perfect tool for automating low-effort tasks such as sharing FAQs on products and services, triggering account inquiries, and resetting passwords. Meanwhile, the human agent can focus on more sensitive issues, which allows them to maintain a positive relationship with the customer.
Using Machine Learning tools, chatbots can now provide resolutions faster. Furthermore, the bot develops better solutions every time it interacts and engages with customers. Every interaction builds up a knowledge base with new insights, which contain suggestions for improvements to products and services.
Top 6 Ways Conversational AI is Helping Investors Make Money in Crypto Exchanges
The high volatility of cryptocurrencies increases the risks of crypto trading and makes it more profitable than any other form of investment. Prices often fluctuate during the day, allowing traders to generate a consistent revenue, provided the calculations are accurate. ML and Conversational AI-enabled virtual assistants in cryptocurrency exchanges and industry are not so widespread. Still, these technologies are being actively implemented in the cryptocurrency space.
Here are the top 6 ways conversational AI is helping investors make money in cryptocurrencies -
1. Market Sentiment Analysis
A large amount of data must be processed to determine the sentiment of the cryptocurrency market, including articles, blogs, forums, and even comments. Conversational AI technologies do the analysis automatically and can give the result quickly. The system also employs machine learning aspects in its work.
2. Connecting with the Right Broker
A major issue confronting the cryptocurrency market is the lack of liquidity. Strong exchange rate fluctuations make digital currencies unattractive for business payments. Banks and exchanges compensate for the difference between supply and demand with high fees. To solve the problem, Conversational AI tools are being used. It helps the customer find the right broker, transact directly, and pay minimal fees.
3. Use of Virtual Assistant
Several companies are specialized in the development of Conversational AI platforms focused on the cryptocurrency market. A conversational AI-powered virtual agent helps automate customer service requests and handle basic transactions such as balance inquiries and password resets. Conversational AI-powered virtual agents have evolved to be conversational, dynamic, and intuitive to fully understand meaning and context, which allows them to engage customers in human-like conversations. Leading banks and cryptocurrency exchanges with conversational AI now enjoy streamlined AI customer support. This has helped in impacting customers' experience positively. Being in a young and emerging finance vein, more crypto exchanges should examine the success of these institutions and be inspired by their template.
4. Maintaining Security when Using Crypto bots
It is necessary to be cautious when trusting someone with your API keys. Only trusted services with a good reputation deserve it, as the API key is a kind of permission to use your account, including trading through it and the withdrawal of funds. A Conversational AI bot requires the API to work, which is not a sign of fraud. Rather, it maintains account security while engaging with other crypto bots.
5. Making Diverse Datasets for Blockchain
A blockchain network combined with artificial intelligence can host a wide range of data sets more intelligently and decentralized. Creating a blockchain API would enable the intercommunication of Conversational AI agents resulting in diverse codes and algorithms built upon diver data sets, ensuring development.
6. Smart Computer Power
Using Conversational AI bots helps users upgrade the operations and retrain when the correct data is received. It allows people to do things more intelligently and efficiently.
We have our work cut out for Convert
Conversational AI is poised to be a game-changer in the crypto exchange and cryptocurrency industry.
Convert by ORI provides decentralized autonomous organizations with an all-inclusive, omnichannel AI customer support platform to help clients quickly find what they’re looking for and provide instant assistance throughout their journey. ORI developed Convert to streamline the support process and build a chatbot to take care of customers' concerns no matter when or where they arise.
Convert offers enterprises AI for business automation capabilities. Our focus is to help cryptocurrency exchanges improve the customer experience through conversational artificial intelligence and 24/7 live help. ORI has developed a conversational AI platform for crypto/fintech companies to engage their clients via any means of communication preferred by the customer – be it SMS, app, or online and creating a seamless experience. The platform brings consistency across platforms, eliminating recurring problems like interrupted calls and waiting for queues, while also providing the much-required personal touch. Take action now to improve the way your brand engages with customers.
The Bottom Line
The AI industry market size is expected to reach 360.36 billion by 2028. According to numerous sources, the AI industry is developing swiftly, and it can support the further development of the crypto industry.
Several chart patterns and indicators have been developed to help crypto traders succeed. By using these tools, traders can make the most out of the market conditions, but Conversational AI offers much more. Technologies are being developed and updated rapidly, and they perform even better now than they did last year. Cryptocurrency traders are not the only people making use of Conversational AI. Participants and representatives of many industries have also shown interest in Conversational AI and its future, claiming that its development will further support people of all sectors.
Conversational AI can neither serve as a panacea that can be applied to fill in every limitation of the cryptocurrency industry, nor it’s going to render the brightest human minds worthless overnight. Nevertheless, it has begun to exert a great deal of control in the crypto sphere. Its ability to facilitate customer support has helped it transform the cryptocurrency industry significantly.