The 21st-century artificial intelligence (AI) technology is already deeply integrated into many areas of our lives. With its great potential, it is expected to evolve even further in the coming years. AI is ready to assist you with everyday tasks and boost your business. This article will guide you through the world of chatbots and show you what AI chatbots are capable of today. Using examples from various industries such as e-commerce, travel, and customer service, you will get an overview of the current possibilities that an AI-based chatbot can offer. Definition: What is an AI Chatbot? An AI chatbot is a technical dialog system that enables the interaction between humans and technical systems. The conversation can take place via spoken language or text. An AI chatbot always offers an option for voice input and output, usually through a chat widget or chat window. As the name suggests, an AI chatbot is based on artificial intelligence and understands human language through Natural Language Processing (NLP). The system does not process mere keywords but understands the user's intention within their message and creates a semantic search query to find the meaning in the database. Artificial intelligence combined with a chatbot offers great development potential: the AI can solve simple tasks independently, provide users with recommendations through predictive analytics, or cluster user insights and formulate new topics through dreaming. These features and capabilities distinguish an AI chatbot from a rule-based chatbot that does not rely on artificial intelligence. What is the Difference Between a Rule-Based Chatbot and an AI Chatbot? There are now many chatbot providers and solutions, and the chatbots themselves can vary significantly. Essentially, there are two types of chatbots: those based on predefined rules and decision trees, and those based on artificial intelligence. Rule-based chatbots are often referred to as 'click bots' because users rarely input their queries as free text but instead click on buttons provided by the chatbot. How Does an AI Chatbot Work? Despite the many different chatbot solutions available, the principle of operation is always the same: A chat window exists, for example, in the form of a chatbot widget or integrated into a messenger app (e.g., WhatsApp, Facebook Messenger). Here, the user can type or speak their concern, question, or command. The AI chatbot receives the message. Using Natural Language Processing, it processes the message and identifies the user's intent. The AI chatbot then responds to the user in various forms, such as voice-bots that reply in spoken language or AI chatbots that respond with texts, videos, images, or other multimedia elements. Benefits of an LLM Compared to Traditional AI Chatbots: 1. Foreign Languages and Language Comprehension: AI chatbots with an LLM can understand and respond to queries in over 80 languages. 2. Spelling Errors: The AI chatbot can independently correct spelling errors and still understand the sentence. 3. Context: The entire chat history is passed to the LLM each time, so the current question is always asked in relation to the previous questions. 4. Cost: The implementation can be relatively simple by feeding selected documents in common formats (PDF, Word, TXT, Excel) and URLs, allowing for cost-efficient operation of the AI chatbot. Benefits of an AI Chatbot An AI chatbot brings many benefits to businesses through accelerated and automated communication: • Faster Response Processes: Customers receive answers within seconds. • Feedback and Development: The chatbot evolves based on real conversations. • Ease of Use and Handling: User-friendly interfaces without in-depth technical knowledge. • Low Effort and Quickly Amortizing Costs: The costs incurred for an AI chatbot are quickly amortized. • Self-Service Saves Employees and Customers Time: Offers self-service options for users 24/7. • AI Chatbot-Human Handover: Allows human intervention when needed. Suitable Application Areas for AI Chatbots The main application areas for AI chatbots are in customer communication for companies, primarily in marketing & sales and customer service. In both cases, they ensure that questions and concerns are answered automatically, allowing users/customers to receive quick responses and be advised promptly. Conclusion: AI Chatbots, the Customer Communication of the Future An AI chatbot is a digital assistant that takes on and performs many tasks that would normally require human intervention. Whether you are looking for a reliable constant in customer service or want to entertain your target audience and offer an innovative communication tool – communication with the use of AI chatbots works on all levels. In summary, chatbots are definitely the future of customer communication in businesses. The term 'artificial intelligence' has been used increasingly and sometimes very loosely in recent years. We hope that after reading this article, you now have a better understanding of what AI is and how it can be used in modern business applications. Is your thirst for knowledge not yet quenched, and would you like to know what a chatbot could look like in practice? Create an AI chatbot tailored to your use case in four steps – completely free and without obligation.
