What is an AI-Powered Chatbot?

Since the inception of digital innovations in everyday business activities, the use of AI-powered chatbots can be predominantly witnessed. AI chatbots have become an integral part of both the internal and external communication strategies of business enterprises.

An AI chatbot is a program that is being used as an alternative to humans for resolving entry-level queries on websites and apps. AI chatbots can do it all – whether it’s helping employees with HR solutions, helping customers to make a purchase or guiding users through a complex B2B sales process.

The primary idea behind AI chatbots is to empower customers to engage and communicate with businesses using comfortable everyday language. As this is an era of rapidly evolving customer engagement, AI chatbots understand the customers, provide them with solutions and bridge relationships between businesses and their customers.

This article will discuss what an AI-powered chatbot is, its benefits and challenges, and take a look at how important it is for a business to implement an AI chatbot.

Chatbots are software programs that simulate human conversation through text input, voice commands or sometimes even both. Chatbots act as a tool that automates responses to the users’ queries and provides them with needed information in real-time. Chatbots work without (or at times) human intervention.

A chatbot can support various internal and external communication needs by implementing a conversational self-service experience at a scale. It can be integrated with many common digital communication channels such as messaging apps (example – WhatsApp, Messenger, Instagram), mobile apps (example – eCommerce apps like amazon), and websites.

There are three types of broadly categorised chatbots based on technical aspects:

As AI chatbots use natural language processing, they have the ability to interpret human language as written by the user. Unlike scripted chatbots and rule-based chatbots, AI chatbots can understand language outside the pre-written commands. They keep learning from ingesting volumes of customer data, applying the algorithm and using results to create a response.

The more the AI chatbot interacts, the more data it gathers and smarter it becomes. AI chatbots use predictive intelligence and analytics to personalise interactions. It helps to understand the users’ intent and provides more natural and accurate information required by the users.

In most cases, users are convinced that they are interacting with humans at the backend, and then they get to know that they are communicative with an AI bot. An AI-powered chatbot basically attempts to recreate a human, as they have many characteristics that make them more human-like

An AI chatbot will be fed with tons of data which interests the users’ queries and translates it into a relevant output. When users access a website, and they have any doubts, they can ask their questions directly to the chatbot.

An AI chatbot will analyse the intent of the question, gather the keywords, tone, sentiment and other factors and then attempt to deliver the best possible solution. If it can’t reach the solution, it will post the follow-up questions to deliver the relevant answer.

When an AI chatbot is built, it will undergo a training period where the programmer teaches it how to understand the content of the users’ words. This helps the AI chatbot to provide the best relatable solution, even to complex queries, more naturally and conversationally.

AI Chatbots have become an indispensable tool to promote and enhance customer experience. It is a cost-efficient and scalable solution that can be integrated with various communication channels allowing businesses to be available for their users/customers 24/7. They come with many benefits, such as:

AI Chatbots are still in their nascent stage and the technology is evolving each day. So building the right AI chatbot solution, training and deploying it can be laborious. It is a tech-based task and involve finances and other resources.

Even after deployment, AI chatbots need ongoing maintenance, which must be continually improved to provide the most accurate information to the users. Some of the other challenges are

AI chatbots’ benefits surpass their complexity and challenges, making them a much-needed tool for business. Customer communication and experience have become the core components for the success of every business. And AI chatbots have become the most preferred tool by many businesses to deliver seamless live engagement with the customers.

By partnering with the best AI chatbot-building experts, businesses can easily overcome the challenges in building their AI chatbot systems. With experts on board, they can support businesses with defining the purpose of the chatbot, selecting the suitable chatbot platform, conceptualising and creating the chatbot, and training and deploying it.

DMG has years of experience building AI-based chatbots and voice bots solutions. We have supported businesses across various industries by reforming their customer service with enhanced chatbot solutions. DMG holds expertise in analysing, conceptualisation and creating a chatbot.

We also extend our support in the post-deployment phase in tracking, monitoring and auditing the chatbot’s performance. We also provide consulting services to initially check on the need/requirement of chatbots with regards to business operations of businesses.