Jul 20, 2023

AI-Based Bots: What You Need To Know

AI Chatbots

Are you willing to implement AI into your business to improve your Customer Support Services? If so, taking your business to the next level by combining artificial intelligence chatbots service can be an excellent step. This article will help you know enough about the significance of implementing AI-based chatbots in businesses. Let’s first understand the meaning and origin of the AI-based chatbot.

Concept of Artificial Intelligence Chatbots

A chatbot is a human-made technology developed with the help of a computer program. It can imitate conversations and respond like a human through text or voice interchanges. Initially, chatbots were developed to ease communication between users and services and streamline customer relationships. The functioning of the AI-based bots is comprehensible in terms of customer inputs and responses to them. AI-based chatbots are based on machine learning (ML) and Large language model (LLM).

Chatbots can work as per the rules set in the system and offer tailored responses as per the situation. Moreover, they are usually helpful and are mostly seen on websites, virtual assistants, mobile apps, and messaging services. The primary aim of developing chatbots is to facilitate the functions involved in customer support, e-commerce, and information retrieval.

How the concept of chatbots was developed?

Initially, chatbots were developed in the 1960s by MIT professor Joseph Weizenbaum. He launched the first device that could imitate human conversations with the help of natural language processing, named ELIZA. After a while, chatbots gained popularity and were aggressively implemented by businesses, especially customer-facing businesses. At first, while talking to ELIZA, many people believed they were conversing with an actual human. ELIZA operates with the substitutes of people's words and turns them into scripts to respond to during the conversation.

Following the rapid advancement of technologies, AI chats have become very popular. But, with the sudden rise in social media platforms and users, chatbots have become the real revolution for businesses. Social media platforms helped companies to connect with consumers directly without spending large amounts on chat support teams. Nowadays, almost every business uses chatbot services on their websites, mobile apps, etc., to allow customers to share queries just by clicking a button.

Industries where AI-based Chatbots can benefit

Here is a list of some of the common sectors where an AI chatbot can work to make their services better for customers to put their queries into the system:

  • Customer service
  • Banking
  • Real estate
  • Hospitality
  • Marketing
  • Healthcare
  • Telecommunications
  • E-commerce

Kinds of AI-based Chatbots

Here are the two most common types of chatbots: AI-based and Rule-based:

1. AI-based chatbots

AI-based chatbots are a more sophisticated way of communicating with awareness of context and require less training than rule-based bots. Generally, they are made with powerful Artificial Intelligence technologies like NLP and machine learning to help understand the intent behind the questions. With contextual awareness, these AI bots provide suitable answers to customers. Moreover, they improve themselves with minimal or no human intervention over time.

2. Rule-based chatbots

Rule-based chatbots use a flow structure that is helpful for them to understand and respond to customer queries. It can only understand a limited range of options and queries. It means that it can only understand the queries that have been programmed into it.

Benefits of Implementing Chatbots for Your Business

With the growing digital world, artificial intelligence chatbots are transforming the business approach of several organizations. They have implemented chatbots as a go-to option for their businesses to improve operations and coordination with customers. There are several benefits to implementing chatbots, some of which are given below:

1. Help to gain customer insights

Chatbots can gather the information and data users put into the system while interacting with them. The data that AI has gathered can be beneficial for businesses to identify customers' thought processes. It will help you improve your customer experience and let you make modifications as per customers' demands.

2. Generate new sales leads

Chatbots help businesses identify new leads from different sources, such as messaging applications, websites, or social media channels. AI chats may engage with users across platforms and provide information about the services your company is providing to boost their interest.

3. Improve customer satisfaction

Implementing a chatbot on your business website allows you to support your customers 24/7 with no delays. It can help you by improving the overall customer experience. With these methods, you can resolve customer queries quickly without searching for solutions manually. They can also allow your customers to experience a personal element by greeting them by name and with customized responses. These positive interactions can help improve your overall customer satisfaction rate and loyalty.

4. Lessen the labor costs

Chatbots are one of the main reasons for shifting manual customer support individuals to other customer-handling tasks. As with AI chats, individuals can indulge in other critical operations impacting the company's growth. They also benefit businesses by reducing labor costs by handling simple customer service inquiries.

Chatbots can make individuals work on other important or more complex queries. It usually improves the overall operational efficiency of a business and its employees. Moreover, chatbots can also help handle more than one customer at a time by answering inquiries in less time than humans. Furthermore, it keeps businesses from hiring specialized teams to live chat support to customers unless the issue is more complicated.


Eventually, when implementing artificial intelligence chatbots, businesses need to have a complete understanding of them. The understanding they should have may involve what chatbots are, how they work, how many types there are, and how they can benefit their business. This information will lead the company to implement a more robust and influential chatbot system.