Chatbot types 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 certainly have noticed that the quality of the answers can vary greatly. There are different types of chatbot: some answer extremely precisely and can hardly be distinguished from a human counterpart, while others 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. Further information on the development of chatbots and practical examples can be found in this blog article.  

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.

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.