By Ruslana Reznikova

KUALA LUMPUR, Malaysia: The digital landscape of the Asia Pacific (APAC) region is undergoing a profound transformation, propelled by the innovative capabilities of conversational artificial intelligence (AI). This transformative shift, as proven by Infobip's latest messaging trends report, is reshaping how businesses interact with customers, optimize operations, and achieve success through the rapid adoption of conversational commerce and omnichannel communication platforms across the region.

 What is Conversational AI? 

 It is a field of AI that allows machines to have conversations that resemble human interactions, like using chatbots for online customer support. Conversational AI has made significant advancements in recent years even though a large part of the focus has been on the inventive capability of generative AI's creative potential. These two AI technologies have significantly transformed how humans and machines interact by imitating natural conversation and automating daily tasks. 

 In 2023, Infobip analyzed more than 473 billion mobile messaging interactions between businesses and customers globally. The data uncovered a clear and compelling insight - conversational messaging platforms have transitioned from optional to essential for driving engagement and increasing sales. We observed a remarkable 137% increase in mobile app messages, a substantial 73% rise in social media communications, and a significant 63% growth in chat app messages compared to the previous year.

 This growth is evidence of a structural change in consumer behavior. Conversational experiences have become the norm across the customer journey, from marketing and transactions to customer support. Mobile messaging apps are increasingly used for marketing purposes, resulting in an increase of 29% in 2023 alone, with WhatsApp solidifying its reign as unrivaled leader in the global chat app landscape. 

 The ability to seamlessly guide buyers through every transaction phase within a unified WhatsApp chat window is truly revolutionary, providing unparalleled convenience by eliminating the need to switch between various apps and websites with agility and speed. And here's where it gets exciting: the APAC region reported an increase of WhatsApp message volume (421%) in 2023.

 Now let's take a look at some of the industries, where conversational AI is making waves:

 AI messaging in e-commerce

 This technological revolution is heavily impacting the e-commerce industry. We observed a significant increase in interactions within the global retail and e-commerce sectors (74%) and a notable rise in interactions on WhatsApp throughout Malaysia (42%). 

 By incorporating AI-powered messaging solutions, e-commerce companies can enhance customer experiences by offering personalized product recommendations, intelligent assistance for purchasing decisions, and real-time updates on order status and deliveries. This level of customized, conversational service boosts customer satisfaction, drives sales, and fosters strong brand loyalty.

 Tech disruption in Financial Services 

The traditionally conservative financial sector is also experiencing a significant shift as more agile and tech-savvy players join the competition. Customers who value streamlined processes in other areas of their lives are increasingly drawn to these agile organizations, which utilize state-of-the-art technologies to provide exceptional experiences. 

 Given the rise in finance-related messaging (32%) in the APAC region, it would be prudent for Malaysian financial institutions to adopt conversational AI and leverage its potential. Indeed, AI-powered chatbots have become highly proficient in managing various tasks, including account inquiries, balance checks, payment transfers, and providing personalized financial advice. Moreover, they consistently comply with strict regulatory standards.

 Catalyzing Conversational AI in Healthcare 

 The healthcare industry presents another compelling opportunity for Malaysian businesses to capitalize on the conversational AI revolution. Throughout the Covid-19 pandemic, AI-powered messaging systems enhanced accessibility and efficiency in healthcare communications. 

Although WhatsApp remains the dominant communication channel in the industry, accounting for a staggering 99% of all traffic globally, RCS (Rich Communication Services) has surged from a modest usage in 2022 to over 771,000 messages transmitted in 2023.

 In the APAC region specifically, the healthcare industry witnessed the most significant increase across all channels at 46%, highlighting a transformative trend that is revolutionizing the sector. This presents an enticing opportunity for Malaysian healthcare providers to leverage conversational AI for telemedicine consultations, appointment scheduling, health information dissemination, and personalized patient support – ultimately improving patient outcomes and alleviating the burden on overwhelmed healthcare systems.

 Seizing the conversational AI opportunity 

 At the forefront of this digital revolution, Infobip's messaging trends report paints a vivid picture of conversational AI's profound impact across broader APAC and the industries in Malaysia. By embracing AI-powered messaging solutions, businesses are unlocking unprecedented opportunities for growth and opportunities for growth, productivity, and cutting-edge innovation.

 Conversational AI is ushering in a new era of customer experiences and business success in the digital age, with advantages ranging from increased engagement to loyalty to more efficient operations and streamlined processes. Amidst this all, the APAC region is emerging as a global leader in technological innovation, driving the transformation of customer experience and propelling corporate success in the digital space. By adopting conversational AI, Malaysian companies can position themselves at the forefront of this revolution, staying ahead of the curve and shaping the future of their respective industries through bold, innovative thinking.

 After all, in the ever-evolving digital landscape, the businesses that will thrive are those that embrace change, adapt to shifting customer behavior, and leverage the power of cutting-edge technologies like conversational AI.

 *Ruslana Reznikova is Infobip VP General Manager for APAC & Eurasia.*