A chatbot is an artificial intelligence (AI) program that simulates and processes human conversation or “chatter” through text or voice interactions, allowing people to interact with digital devices as if they were communicating with a real person through messaging apps, websites, mobile apps, or by phone.
How they work
Chatbots process data to provide answers to queries of all kinds and are powered by AI, automatic rules, Natural Language Processing (NLP), and Machine Learning (ML).
Types of chatbots
Task-oriented (declarative) chatbots are single-purpose programs that focus on performing a function. They use rules, NLP, and very little ML to generate automated but conversational responses to user queries.
Data-driven and predictive (conversational) chatbots are virtual assistants or digital assistants. Compared to task-oriented chatbots, they are much more advanced, interactive, and personalized. These chatbots are context-aware and use natural language understanding (NLU), NLP, and ML to learn on the fly. They also use analytics and predictive intelligence to personalize the user experience based on user profiles and past behavior.
The importance of chatbots
There are many benefits to using chatbots for businesses, including the following:
- Chatbots improve operational efficiency and cut business costs while offering convenience and extra services to internal and external clients.
- Businesses can scale, personalize, and be proactive all at once with the help of chatbots.
- They help businesses quickly address various customer questions and problems while minimizing the need for human interaction.
- A business can simultaneously serve millions of customers with human-like, individualized, proactive service by using chatbots.
- One of the best things about chatbots is that, unlike apps, they don’t need to be downloaded, updated, or take up any memory on the phone.
- The ability to incorporate multiple bots into a single chat is another benefit.
The future of chatbots
Like other artificial intelligence (AI) tools, chatbots are being used to improve human capabilities and give people more freedom to be innovative and creative, allowing them to spend more time on strategic rather than tactical activities.
Businesses, workers, and customers will probably benefit from improved chatbot features when AI and the development of 5G technology are combined, such as quicker recommendations and predictions and simple access to high-definition video conferencing within a conversation. Our world will become more productive and interconnected once everyone has a fully functional personal assistant in their pocket.
The customer experience will change due to the continued development of AI and ML, which will give chatbots new capabilities and usher in higher levels of text-and voice-driven user interfaces. These advancements may also impact data collection and offer deeper customer insights that result in anticipatory purchasing behavior.