According to Google, 53% of people who own a smart speaker said it feels natural speaking to it, and many reported it feels like talking to a friend. Several respondents told Google they are even saying “please” and “thank you” to these devices. A decade later, Kenneth Mark Colby at the Stanford Artificial Intelligence Laboratory created a new natural language processing program called PARRY. Although it was the first AI program to pass a full Turing test, it was still a rule-based, scripted program. In the chatbot vs. Conversational AI debate, Conversational AI is almost always the better choice for your company. It takes time to set up and teach the system, but even that’s being reduced by extensions that can handle everyday tasks and queries.

What is the difference of conversational AI?

Conversational AI enables machines to interact with humans naturally, automating customer service interactions, providing virtual assistants, and natural language search. Generative AI is prompted to generate text, images, or other media.

Traditional Chatbots – rely on rule-based functioning or programmed conversational flow. AI Chatbot – relies on Natural Language Processing, Machine Learning, and Input Analysis to give a personalized customer service experience. Depending on their functioning capabilities, chatbots are typically categorized as either AI-powered or rule-based. We, at REVE Chat, are aware of the shortcomings that scripted chatbots can have and therefore help businesses easily design the best chatbot they can.

How to Build a Rule-Based Chatbot?

Users can interact with a chatbot, which will interpret the information it is given and attempt to give a relevant response. For a small enterprise loaded with repetitive queries, bots are very beneficial for filtering out leads and offering applicable records to the users. The wonders of AI have expanded into mainstream fields to the point where they are intrinsically tied to all kinds of technological development. There is AI involvement in everything to the point where one even forgets it’s there. There are now AI power versions of most conventional technologies including the conversational AI used in most modern chatbots.

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Intelligent virtual assistants rely on advanced natural language understanding (NLU) and artificial emotional intelligence to understand natural language commands better and learn from situations. They can also integrate with and gather information from search engines like Google and Bing. Chatbots are virtual assistants that are robots with the ability to understand human language and respond to it for which they use voice or texts. However, chatbots are basic Q&A-based bots that are programmed to respond to preset queries. It enables chatbots to understand user requests and respond appropriately.

The State of B2B Digital Event Experience 2023 EU and UK

These bots understand customer preferences and customer context and offer the best recommendations to customers for upselling and cross-selling. They leverage cart information, purchase history, and inquiries to suggest the right products or services to customers. Conversational AI chatbots use ML, NLP, and intelligent analysis to understand customer intent and offer relevant solutions to customer queries in a conversational tone. Now let’s jump deeper into how each of these technologies works together. A rule-based chatbot works with the data set that you induce in the bot. With the set of rules in the rule-based chatbot, you can manipulate the conversation.

When it comes to the chatbot in banking, there can’t be a better example than EVA by HDFC. It’s an AI-powered bot in the true sense that uses Natural Language Processing (NLP) and makes support as fast and effortless as it can get. His primary objective was to deliver high-quality content that was actionable and fun to read. For example, conversational AI understands if it’s dealing with customers who are excited about a product or angry customers who expect an apology. The important thing is that these technologies are becoming more and more advanced and beneficial.

The Top 13 Speech Analytics Software Solutions

If you don’t need anything more complex than the text equivalent of a user interface, chatbots are a simple and affordable choice. However, for companies with customer service teams that need to address complex customer complaints, conversational AI isn’t just better. In effect, it’s constantly improving and widening the gap between the two systems.

  • Despite the differences, both technologies have the potential to transform the way customer service is delivered, which can ultimately have a big impact on the bottom line of a business.
  • In this article, we’ll discuss how implementing conversational AI will help your business succeed.
  • Conversational AI is a technology that enables machines to understand, interpret, and respond to natural language in a way that mimics human conversation.
  • For example, suppose if a property manager needs to screen rental prospects.
  • In the chatbot vs. Conversational AI debate, Conversational AI is almost always the better choice for your company.
  • That’s why chatbots are so popular – they improve customer experience and reduce company operational costs.

Voice assistants, like Siri, Alexa, and Google Assistant, are examples of conversational AI tools that use voice as the primary input to interpret and respond to user requests. On the other hand, organizations that demand more sophisticated and customized support might benefit more from conversational AI. This is so that it can grasp and interpret human language more precisely while responding in a suitable and relevant way.

Guide to Understanding AI Chatbots

The chatbot is enterprise-ready, too, offering enhanced security, scalability, and flexibility. SendinBlue’s Conversations is a flow-based bot that uses the if/then logic to converse with the end user. You can set it up to answer specific logical questions based on the input given by the user. While it’s easy to set up, it can’t understand true user intent and might fail for more complex issues.

chatbots vs conversational ai

With the ability to learn, adapt, and make decisions independently, conversational AI transforms how we interact with machines and help organizations unlock new efficiencies and opportunities. A chatbot is a computer program designed to mimic conversations with actual users, especially online. Chatbots are frequently utilized in customer service, commerce, and other industries where they can organically and intuitively communicate with people using text, voice, or even video. A chatbot is recognized as a digital agent that uses simple technologies to initiate communication with customers through a digital interface. Chatbots are automated to ‘chat’ with customers through websites, social media platforms, mobile applications, etc. They are not complicated to build and do not require technical proficiency.


Ochatbot, Chatfuel, and Botsify are the three best AI chatbot development platforms. When shopping, a customer surfs different websites to find the best value. An effective e-commerce website will resolve customers’ questions instead of losing sales. When the customers don’t get answers instantly, they might seek the products elsewhere. Chatbots are computer programs that can talk to you, introduce themselves, ask you questions, receive your answers, and provide you with a solution. Today, they are used in education, B2B relationships, governmental entities, mental healthcare centers, and HR departments, amongst many other fields.

chatbots vs conversational ai

An AI chatbot not only gives options for customers to choose from, but they also interact much in the same way as a human agent by resolving issues quickly. Conversing with the rule-based chatbots might be frustrating for customers since rule-based bots don’t have Artificial intelligence behind them to understand every question. Rule-based chatbots don’t jump from one question to another, they don’t link new questions to the previous conversation. Many e-commerce websites use rule-based chatbots to answer customers’ questions.

Conversational AI chatbots

For example, there are AI chatbots that offer a more natural and intuitive conversational experience than rules-based chatbots. Artificial intelligence (AI) technology known as «conversational AI» enables computers to interact with people organically and expressively, sometimes through chatbots or virtual co-workers. These technologies comprehend chatbots vs conversational ai and interpret user input to quickly design appropriate solutions using advanced programming and machine learning techniques. Companies can automate customer care and help tasks, boost marketing campaigns, and improve the customer experience with conversational AI. Conversational AI can comprehend and react to both vocal and written commands.

Are chatbots also known as conversational agents?

A chatbot is also known as an Artificial Conversational Entity (ACE), chat robot, talk bot, chatterbot, or chatterbox.

Despite that, there are certain processes and tasks where a bot would seem more suitable and vice versa. However, as a business leader, you should differentiate between the two at the earliest so that you can be sure which of the two can best help optimize processes and improve customer experiences (CX). Remember to keep improving it over time to ensure the best customer experience on your website. This technology is used in software such as bots, voice assistants, and other apps with conversational user interfaces. Additionally, these new conversational interfaces generate a new type of conversational data that can be analyzed to gain better understanding of customer desires.