Artificial Intelligence Chatbots, Explained

Artificial Intelligence Chatbots, Explained

Growth Marketing
Shaneen Wilshire
Shaneen Wilshire Aug 11 2020 • 5 min read

These days we are more exposed to an ever-increasing number of technological developments. And this is where the concept of Artificial Intelligence (AI) comes into play.

For many it may not be a new concept and for others it remains more “futuristic” and movie-like. This is partly because some of us tend to associate AI with the creation of intelligent machines with human-like abilities. That will result in them replacing us. Does this sound familiar?

Well it’s nothing like that, actually the concept of Artificial Intelligence was first used in a conference given at the University of Darthmouth in 1956 by the scientists and computer engineers John McCarthy and Marvin Minsky. 

Nowadays AI is as a very complex and extensive field of software engineering could be defined as the area responsible for developing systems capable of analysing, processing information and reacting accordingly to the patterns and characteristics of the data compiled.

All of this, is in order to make people’s work easier. Not to replace us.

Therefore, Artificial Intelligence, works through different methodologies including a wide range of features and subfields, such as:

Machine Learning (ML), Deep Learning, Computer Vision, Natural Language Processing (NLP) and others.

And there are also products that work based on AI such as:

Smart Speakers (Alexa, Siri, Google voice assistant), predictions based apps (Google Maps, Weather Updates…). Smart email categorization, Chatbots, among others. 

However, let’s not lose today’s topic. Which is on the Chatbots and their relevance to business.

What is an Artificial Intelligence Chatbot?

First of all, it is important to recognize that there are several types of chatbots developed with different language interfaces. Although, they can be divided into three main categories based on how they work.

Which are: rule-based chatbots, AI chatbots and live chatbots.

What do we know as rule-based chatbots?

They are the most known and used chatbots worldwide, they specialize in a single function based on input data. For example: a chatbot intended to answer only technical questions such as the features and benefits of a product.

Or a chatbot that helps customers browse your website by telling them what tab to visit depending on their needs. What email should be written to talk to a person. Or where should they enter their contact details, among others.

What do we know as AI-chatbots?

Artificial intelligence chatbots or AI-Chatbots are chatbots created with the capacity to understand Natural Language Processing (like English, Spanish, French, etc.) or Machine Learning, (method which takes more time to develop) and manual data input (human data).

They can have different functions, from maintaining an intelligent conversation in real time with clients, to making general or personalized predictions according to the technology with which it is developed. 

But, How does an AI-chatbot work? 

Well, an AI-chatbot working process begins, by collecting and analysing the data provided by the customers. Then, the chatbot identifies the intent and entities involved. And finally, provides a response to the customer’s requirements.

And all the information from any interaction with a customer is held in its systems for future reference.

Some examples of the must populars companies with AI-chatbots are Antares (QBot), Google (DialogFlow), Amazon (Amazon Lex) and IBM (IBM Watson).

What do we know as Live chatbots?

Live chatbots, as the name implies, are created as an extension of live chats, where a customer submits a question or a request that will be forwarded by the chatbot to the sales team, who will be able to view the message and respond directly. 

One of the most popular examples of this type are the ones we can find on social media like on a Facebook business page.

Why are AI-chatbots important to our business?

Source: Reve Chat

“There has been a more 160% increase in client interest around implementing chatbots and associated technologies in 2018 from previous years,” says Van Baker, VP Analyst at Gartner. “This increase has been driven by customer service, knowledge management and user support.”

No matter what type of company or market field you are in, today the use of AI-chatbots is everywhere and they are very important to help improve your business. 

Think of all the ways you want to be able to reach out to customers. But, there is not enough human talent to make it happen. So that’s where AI-chatbots can help you create and maintain that contact.

And after taking all of this into consideration, we can summarise everything down to three primary benefits of using AI chats for your business, which are:

1. Personalize impressions for your customer: 

A chatbot can be the first face of your company. People want to receive an instant replay for their needs, with a one on one personalize conversation, that’s possible with dedicated, intelligent and sensitive AI chatbots.

2. Attempt to exchange valuable conversation with your customers:

With a single chatbot it is possible to be in contact with several customers at the same time.

This can improve all contact between your business and your customer’s, elevating the user experience by showing them a solution that comprehends their needs at the very first time.

3. Provide a 24/7 service: 

You will spend less money on salaries, by using this type of technology. Plus it helps you to engage with your customer through online support in any time zone.

So, in conclusion. There are many more benefits for your business, once you decide to adopt this type of technology. 

Although, you have to always keep in mind that no matter how intelligently a chatbot is developed. Human intervention will always be needed to help configure, train and optimize each chatbot system.

Also remember, there will be some customers who are still not used to chatbots which means that they will want to be in contact with a real person from the beginning.

4Geeks Growth: Data-Driven Growth Marketing
4Geeks Growth is data-driven growth marketing services for modern brands. Growth hacking services for B2B startups and eCommerce.
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