Start
Use of a chatbot

Chatbot - importance in the company

Chatbot - importance in the company

For readers in a hurry:

  • A chatbot is a software application that conducts human-like conversations with users and can be integrated into company websites or social media platforms to communicate via text or voice.
  • There are different types of chatbots, including rule-based and AI-driven variants. Rule-based chatbots use predefined rules and decision trees, while AI chatbots use machine learning and artificial intelligence to have more natural conversations and continuously improve.
  • Rule-based chatbots are suitable for clear and less complex requirements, such as customer service, while AI chatbots have access to company data and can process complex tasks such as credit card applications or invoice content to provide personalized support.

Meaning: What is a chatbot?

A chatbot is a software application used to conduct human-like conversations with users. These programs are integrated into company websites or social media platforms, among others, to communicate with users via text or voice. Thanks to advances in artificial intelligence (AI), chatbots have evolved considerably. While it was initially only possible to answer simple questions, a bot is now able to process inquiries, provide information or even complete complex tasks - all within a chat interface with a connection to company data.

The purpose of a chatbot is therefore to facilitate communication between humans and machines by understanding human language and responding to questions accordingly. One example of the first chatbot is Eliza, which was developed in the 1960s and is considered one of the earliest dialog systems.

Anyone who has often interacted with digital assistants will have noticed that the quality of the answers can vary greatly. Some chatbots answer extremely precisely and can hardly be distinguished from a human counterpart. Others, on the other hand, fail to answer the questions asked or merely refer to general information.   

What types of chatbots are there?

There are different types of chatbots, including rule-based (programmed) chatbots and AI-driven chatbots. Both types can be used in different application areas with the aim of improving the interaction between humans and machines. A decision in favor of one of the two variants should be based in particular on a thorough assessment of the specific user needs.

 

Rule-based chatbot

Rule-based chatbots, also known as click bots or button-based chatbots, are chatbots that are based on predefined rules and decision trees. They usually work by providing a limited selection of pre-defined responses or actions for users to choose from. These responses or actions are often triggered by clicking on predefined buttons or options.

Rule-based chatbots show their strengths in environments with clear and less complex requirements. They are often used in customer service to answer basic questions about opening hours or location information quickly and reliably.

Cosine - the measure of similarity

AI chatbot

An AI chatbot, also known as an artificial intelligence chatbot or AI chatbot, is a chatbot that uses machine learning and artificial intelligence (AI) to enable human-like interactions with users.

Unlike rule-based chatbots, which are based on predefined decision trees, AI chatbots can understand natural language, generate contextual responses and improve over time by learning from experience. They represent the future of chatbots.

How does a rule-based chatbot work?

A rule-based chatbot works using predefined rules and patterns. These chatbots usually use if-then-else statements to respond to user input. The rules are defined by the developer and cover typical user requests and responses. When a user makes an input, the chatbot checks this input against the predefined rules and responds accordingly. This type of chatbot is suitable for performing simple tasks and giving standardized responses, but they are usually not very flexible or adaptable.

Practical example

One possible area of application for a rule-based chatbot would be an automated booking system for hotels, for example. The chatbot responds to predefined requests, such as availability checks, reservation requests and questions about the services offered. By providing predefined answers, the bot guides the user through the booking process.

How does an AI chatbot work?

The functioning of an AI chatbot is based on various technologies, including natural language processing (NLP) and artificial intelligence (AI). Machine learning and NLP allow the bot to interact with users and learn from previous interactions, allowing it to continuously evolve and improve. AI chatbots analyze user input, capture context and provide answers based on a trained model. They are able to have more natural conversations and adapt better to different user requirements. In addition, they enable the processing of complex requests that go beyond simple rule-based systems by applying advanced algorithms. Through interaction and the resulting customer feedback, the chatbot can continuously optimize its capabilities and provide personalized responses.

Today, modern AI chatbots have access to the company data relevant to their task. This enables them to perform tasks that were previously reserved for employees from customer service or the IT helpdesk, for example.

Practical example

One example of the use of an AI chatbot is in a virtual assistant for banks that understands natural language, handles complex requests such as account balance inquiries, transfers and credit card applications, and provides contextual responses by using machine learning and natural language processing to improve user interactions and offer personalized assistance.

Another example is an AI chatbot that provides a customer with the relevant invoices again when asked about certain invoice contents and, in a further step, also immediately accepts and executes verbally formulated orders. The customer interacts with the company by voice. Filling out search and order forms is therefore a thing of the past.

With Voiceflow you can develop chatbot front-ends that help you create customer-centric interactions. From simple all-in-one chatbots to complex systems that access company data, Voiceflow provides a user-friendly platform for creating and refining your chatbot strategy.

3
5
How does a chatbot work?

A chatbot is software that is based on either predefined rules or artificial intelligence (AI) to communicate with users in natural language. Chatbots can be used in messengers such as Facebook, MS Teams and Slack or on websites to conduct automated conversations.

3
5
What are the advantages of a chatbot?

Chatbots can help to automate customer communication, free up resources, be available around the clock, answer recurring questions and provide an efficient conversation. They can also increase customer satisfaction and reduce costs.

3
5
In which areas can chatbots be used?

Chatbots are used in various areas such as customer support, e-commerce, marketing, training, contract management and ordering to improve interaction with customers and automate processes.

3
5
How can you create a chatbot and how easy is it?

There are various platforms and tools, such as Workato in conjunction with MS Teams or Slack, that make it possible to create chatbots without extensive programming knowledge. The complexity depends on the desired functions, but there are also simple chatbot creators for basic conversations.

3
5
What role do keywords play in the functioning of a chatbot?

Keywords are words or phrases that chatbots search for in order to generate suitable answers. They help to understand the user's intention and provide relevant information.

Logo of Businessautomatica

About Business Automatica GmbH:

Business Automatica reduces process costs by automating manual activities, increases the quality of data exchange in complex system architectures and connects on-premise systems with modern cloud and SaaS architectures. Applied artificial intelligence in the company is an integral part of this. Business Automatica also offers automation solutions from the cloud that are geared towards cyber security.

Our latest blog articles

AI - data protection & data security
AI - data protection & data security

How can data protection and data security be guaranteed in AI systems? In our article, you will learn valuable strategies and practical examples for the secure handling of data.