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What are AI-powered chatbots?

Aishwarya Sankhé
min read
What are AI-powered chatbots?

What are chatbots?

A chatbot is a type of software that conducts conversations through websites, messaging applications, etc. It is used by many industries like banking, insurance, and e-commerce to communicate with customers without the aid of a live agent. 

Read about the history of chatbots here.

There are mainly two types of chatbots. 

Rules-based chatbots

Rules-based chatbots, also known as linguistic based chatbots, are an excellent tool for automating customer service for very specific situations. The conversation is driven with the use of very specific keywords, or through suggested responses. 

Rules-based chatbots use a very basic type of Natural Language Processing. They create conversation flows using an if/then logic. It’s very much a black and white approach to conversing, so interactions are very structured. At best, these types of chatbots work as an interactive FAQ.

The drawbacks of Rules-based CB

Rules-based chatbots are best-used for transactional interactions. It acts based on a set of defined rules. It’s a simple approach to begin with, but it fails in handling more complex questions.

Variations of questions have to be inputted for a chatbot to understand what we’re trying to say. For example, a chatbot is trained to understand and answer the question, “Where’s my pizza?” But if a user were to ask a variation of this like, “When is my pizza arriving?”, the bot will not understand the user’s intent, unless it’s trained to do so.

Training these chatbots is also a cumbersome process. It demands programming and training for every question and every variation of that question. If a human says something that is not manually added to the system, the bot will get confused, and repeat the question until it receives a response it does understand. Meaning that more often than not, a human has to train these bots and fine-tune their conditions. 

And for this reason, it’s difficult to scale. As companies get larger, queries get more complex. For a rules-based chatbot to handle such queries, it needs constant maintenance. 

If you decide to deploy a rules-based chatbot, be honest about its capabilities. It can only handle a number of simple inquiries, so be sure to also input a way for the user to contact a live agent via email, or by calling. 

AI-powered chatbots

AI-powered chatbots are a much-more advanced version of the original chatbot. They are more sophisticated, interactive and data-driven than its rules-based counterpart. Thus providing a more human-like experience for its users.

AI-powered chatbots also use Natural Language Processing coupled with semantics and Machine Learning to understand the context of the situation and the intent of the user. So if users were to ask questions that slightly vary from the standard that’s been programmed into it, the chatbot will handle it.

Data collection

What stands out about AI-powered chatbots is its ability to analyze the large volumes of data it collects. While these volumes of data provide little to no value to the company, chatbots are able to analyze it and provide insights. For example, Engati’s chatbots have an analytics framework to provide information on the most frequently asked questions and actions. Companies are able to use this data to understand what their customers want and what they’re curious about.

Training on auto-pilot

These chatbots learn from experience. They’re always learning from these large data sets. And they store information from every interaction in a way that allows them to access it again when required. 

With this information, they have the ability to analyze interactions and decipher behavioral patterns based on previous experiences. Patterns that even humans might not even detect. It can identify customer complaints, and reviews through sentiment analysis. 

So the more one interacts with a chatbot, the more intelligent it becomes. 

Wrapping up

Nowadays, customers expect more. They want outcomes, personalization, on all channels immediately. In fact, Accenture has predicted that 60% of surveyed executives are interested in implementing conversational bots for after-sales and customer service.

Let’s meet their demands and start incorporating AI-powered solutions. Talk to our agents over at Engati to help you get started now.

Get started with Engati today.

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About Engati

Engati is a one-stop platform for delighted customers. With our intelligent bots, we help you create the smoothest of Customer Experiences. And now, we're helping you find those customers too. The award-winning Marketing Automation platform, LeadMi, received some major upgrades and joined our family as Engati Acquire. So, let's get started?

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