HomeTechWhat is Chatbot and How Do AI Chatbots Work

What is Chatbot and How Do AI Chatbots Work




A chatbot is a computer program based on AI, which simulates human conversations. They are also known as digital helpers who understand social abilities. Bots interpret and process user requests and respond promptly.

Bots can be deployed on websites, applications and Messaging Platforms like Facebook Messenger, Twitter or Whatsapp via voice as well as text.

How do the chatbots function?

Chatbots evaluate and classify the purpose to remove specific entities from the user’s request, which is the chatbots’ primary task. Once the analysis is done, the user receives the appropriate response.

Your best agents are chatbots.

Chatbots are around for a long time, but not all of them are the same. “Chatbot” refers to a variety of technologies allowing consumers to interact with companies and carry out tasks using a conversational interface.

How do organizations benefit from Chatbots?

  • Customer Service Machine

Chatbots enable customers to serve themselves quickly and easily and at any time of day and to answer a range of questions.

  • Include costs

Chatbots are used to resolve a variety of consumer problems and differentiate consumers from more costly customer service networks, reducing costs without impacting customer satisfaction.

  • Manage the growing number of customer requests

Chatbots can speak to and assist several customers simultaneously. They never tire and can be confident that they provide a consistent level of service, including holidays and weekends. 

  • Additional Human Agents

Chatbots excel in repetitive work, which can tediously impact humans. Besides, suppose the customer wants an answer, but the chatbot didn’t have it. In that case, the chatbot moves the full history of the interaction, prevents the customer from the beginning again and lets the agent locate and address the issue quickly and easily.

  • Enhance Customer Loyalty

Customers today want to self-serve and find answers for themselves right now without the need to collect their phone or email and wait for a response. Chatbots have their anticipated experiences.

Are all Chatbots identical?

1. Simple chatbots

Simple chatbots are today’s most prevalent chatbots. Like a FAQ website, they are designed for casual use to provide consumers with an enjoyable experience. If a simple chatbot doesn’t know an answer to, or a chatbot did not understand a customer question, then stakes for the brand are relatively low. 

2. Intelligent Chatbots

Chatbots must be smart to be useful for the vast majority of companies. Intelligent chatbots can communicate in real-time with customers to solve problems, perform transactions, and answer questions. Smart chatbots can also predict customer intentions and offer specific assistance when they detect the need for customer support. When a client, for example, has viewed multiple mortgage pages and has stopped on a particular page, it may engage the client proactively and assist.

How AI Chatbots work?

AI chatbots can integrate, exploit Big Data and use artificial intelligence ( AI) to solve problems and perform transactions with business systems. Here’s what your organization can do with intelligent chatbots.

1. Capture real-time data

Smart chatbots capture the identity, characteristics and interaction information of customers and any input received by customers in real-time. The chatbot, for example, determines:

  • Period, time, location and information on the device
  • Whether the client is on the Internet or a mobile application
  • If the customer called for a chat or was encouraged to do so proactively
  • When the customer started interacting with the chatbot on the website or the mobile app

2. Using internal data 

The chatbot offers more insights into the customer by using data, such as customer profiles, interests, value to the business, venue, industry and the amount of money spent last year. These data are obtained from different sources and are usually available in customer relationship management systems (CRM).

3. Combine consumer purpose prediction data

Chatbots will understand what the customer wants / needs through the combination of all data signals. This helps to ensure that the conversation is contextual and natural when the customer chats.

4. Commit customers

If customers need help, they can invoke chatbots themselves or chatbots can engage customers proactively.

5. Understand what is spoken

Chatbots take any message written or spoken and use natural language models to understand what the client has said. This interaction is contextual and customizable. This is achieved by using details like the customer’s website while interacting with chatbot and customer profile.

6. Formulate an answer

The response algorithm decides the correct response and assembles it from the knowledge base and CRM systems until the chatbot understands the client’s intentions.

7. Determine follow-up measures

If the customer is pleased with the response, the chatbot ends this intention and awaits a new plan. Suppose the customer requests that the chatbot helps “pay my credit card bill,” for example. In that case, the chatbot will establish appropriate follow-up measures, such as the password required by the customer and then a transaction completed.


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