A chatbot is a software used to chat via text or speech instead of direct interaction with humans. Chatbot helps users through automated interaction.
A chatbot is a software application used to communicate online via text or speech-to-text instead of providing direct interaction with a human agent.
Chatbot Definitions
A chatbot is a type of software that can help users by automating interactions and interacting with them through messaging platforms.
A chatbot is a software or computer program that mimics human conversation or “chat” through text or voice interactions.
Consumers in both business-to-consumer (B2C) and business-to-business (B2B) environments increasingly use chatbot virtual assistants to handle simple tasks.
Power of Chatbots
If you’ve noticed a rise in chatbot usage, you’re not alone. More and more enterprise organizations are using them to automate aspects of customer experience. With less dependence on service agents and live agents, organizations are realizing significant cost savings and becoming more efficient.

- Chatbots have seen a 92% increase as a brand communication channel since 2019.
- It was used by 67% of global users last year.
- It will handle 75-90% of healthcare and banking inquiries by 2023.
Important of Chatbot
A chatbot is often described as one of the most innovative and promising expressions of interaction between humans and machines. These digital assistants streamline interactions between people and services, enhancing the customer experience.
At the same time, they offer companies new opportunities to streamline customer engagement processes that can reduce traditional support costs.
A chatbot can increase and engage customer interaction with less human intervention. This eliminates bottlenecks in customer support that can occur when demand outstrips resources.
Instead of waiting on hold, customers can get answers to their questions in real time. Less service friction can improve the brand experience for customers.
For companies trying to improve their customer experiences, adding chatbots to answer simple questions can improve satisfaction, streamline the customer journey, and provide customer-centric support.
- 68% of customers cite 24-hour support.
- 64% cite quick responses to simple questions.
- 51% cite immediate responses.
How do Chatbots Work?
Bots are built for a specific reason. A store will most likely want chatbot services that help you place orders, while a telecom company will want to build a bot that can handle customer service queries.
A chatbot communicates similarly to instant messaging. It enables human-machine communication, which can take the form of messages or voice commands.
There are two types of chatbots: one that operates by following a series of rules, and the other that uses artificial intelligence.
1. Rule-based chatbots
A rule-based bot can only understand a limited range of choices with which it is programmed. Default rules define the duration of the bot’s conversation.
Rule-based chatbots are easy to build because they use a simple true-false algorithm to understand user queries and provide relevant responses.
2. AI-based chatbots
The bot is equipped with an artificial brain, also known as artificial intelligence. It is trained using machine learning algorithms and can understand open-ended questions. Not only does it understand commands, but it also understands the language.
As the bot learns from interactions with users, it continues to improve. An AI chatbot identifies language, context and intent, which then reacts.
Best Chatbot Approaches
There are various approaches and tools that you can use when building chatbots. Depending on the use case that you want to solve, some technologies are more appropriate than others.

Integrating forms of artificial intelligence such as natural language processing, machine learning, and semantic understanding can be the best option to achieve the desired results.
1. Standard Logic Tree
These prompt-based chatbots allow users to choose from a list of prompts and then lead them through a series of multiple-choice questions.
Based on the answers, the application will direct them to the most helpful destination. This type of chatbot is good for simple questions with a defined scope, as it limits users to a certain number of inputs.
2. Keyword Recognition
This approach allows users to submit their written queries. The chatbot identifies the keywords from the query and directs the users to the relevant solutions. This type of chatbot can be used to address a wide range of customer inquiries.
3. Machine Learning
This approach uses a machine learning engine to train itself to provide the best response to a customer query. It learns based on past inquiries and evolves as it analyzes the inputs.
A large amount of data is required to train the system, and the machine learning of the chatbot application is done in a black box with no insight into what is being learned.
4. Symbolic Natural Language Understanding
Natural language understanding is a type of artificial intelligence that uses computer software to understand input in the form of text or speech.
This approach leverages symbolic AI to give customer service a more interactive approach. It uses natural language technology to understand the user’s query intent.
It provides full visibility into the rules machines use to acquire knowledge, with human oversight to adjust learning models.