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How does a chatbot work?
A chatbot is a tool that can simulate human conversation and interact with users through text or voice-based interfaces.
When most people talk about chatbots, they’re referring to rules-based chatbots. Also known as toolkit chatbots, these tools rely on keyword matching and pre-determined scripts to answer the most basic FAQs.
Crucially, these bots depend on a team of engineers to build every single flow, and if a user deviates from the pre-built script, the bot will not be able to keep up.
Chatbots vs. conversational AI: Why is it important to know the difference?
Not all chatbots use conversational AI, and conversational AI can power more than just chatbots.
Think of chatbots as one possible application of conversational AI. Conversational AI is a broader concept encompassing chatbots but also includes other technologies and applications involving natural language processing and human-machine interaction.
Conversational AI can power chatbots to make them more sophisticated and effective. While rules-based chatbots can be effective for simple, scripted interactions, conversational AI offers a whole new level of power and potential. With the ability to learn, adapt, and make decisions independently, conversational AI transforms how we interact with machines and help organizations unlock new efficiencies and opportunities.
Why chatbots matter for companies
Chatbots matter for companies because they offer a wide range of benefits that can significantly impact business operations and customer interactions. Chatbots provide 24/7 availability, allowing companies to offer round-the-clock customer support and assistance, which is crucial in today's global and digital business environment.
Also, chatbots can handle repetitive and routine tasks, such as answering frequently asked questions, processing orders, and providing product information. This automation frees up human resources to focus on more complex and value-added tasks, improving overall operational efficiency.
Chatbots are cost-effective solutions for businesses, as they require lower operational costs compared to maintaining large customer support teams. They can scale easily to handle a high volume of interactions without incurring significant additional expenses.
