What is Chatbot? How does Chatbot work?


Chatbot is a conversation app that supports customer service, interacts and supports by changing or enhancing human support agents with artificial intelligence (AI) and other automation technology that can communicate with users through chat. 

Combining chatbots with user experience has become more popular. So how do they work and what are they used for? This article will give you the answer.

What is Chatbot?

Chatbot is a computer program that uses artificial intelligence (AI) to simulate and handle chat with users to solve customer queries. When potential customers connect through any channel, chatbot will stay here and solve their problem.

Chatbots can simply like rudimentary programs answer some simple query by answering a line of text or delicate like a digital assistant learn and improve to bring personalization more increase when they collect and handle information.

5 main types of Chatbot

Over the years, Chatbot developed more and more sophisticated with many different types which are served for many different demands, below are 5 common types of Chatbot:

  • Scripted reply Chatbots: These bots interact with users through predefined questions until the chatbot answers the user's question.
  • Menu-based Chatbot: Similar to a scripted reply chatbot but it requests users make choose from a predefined list or menu to provide the bot understanding deeply about the thing that the customer wants.
  • Keyword answering Chatbot: These chatbots are based on machine learning algorithms to recognize and explain keywords and phrases on a user's query. Firstly, it analyzes the big data about content to determine the sample and relationship between word and phrase, after then using this information to answer in a natural way and more likely to people.
  • Chatbot responds with context: These chatbots are more complicated than other chatbots and require a focus on data. It uses AI and Machine Learning to remember chats and interactions of users and stimulate the use of these memories to develop and improve over time. Instead of basing on keywords, these bots use what the customers ask and how they ask to bring answers and improve by themselves.
  • Voice-assisted Chatbot: This chatbot is the future of this technology. The voice-assisted chatbot uses verbal dialogue from the user as input to remind answers and be creative. Developers can create these chatbots by API transfer text to voice and voice recognition

The benefit of using Chatbot

Chatbots based on AI help increase the efficiency of operations and save money for businesses as well as bring convenience to customers. Below are the main reasons why many businesses using chatbot:

  • Cost-effective: Chatbot is a one-time investment. When it is developed and used, you can decrease the number of people you hire to support your customers.
  • Save time: Chatbots can handle repetitive tasks usually and work faster than people.
  • 24/7 possibility: Bots are always ready for customers by answering questions immediately. The potential benefit of using a chatbot is the 24-hour customer service.
  • Reduce customer waiting time: Each chatbot can interact with many customers at the same time, helping reduce the waiting time. People can receive the answer follow the real time for their query when they interact with chatbot
  • Identify potential customers: When a chatbot interacts with potential customers, it can be coded to identify potential customers by listening to the word and phrases used by the customer.

How do businesses use a chatbot?

A business can use Chatbot in a different way based on their line of business like:

  • E-commerce: An e-commerce website can use a chatbot to answer the uncomplicated question about a product or provide useful information that consumers can find later, including shipping cost and inventory,...
  • Customer service: Chatbot is used to chat with customers directly, where customers can start to communicate with a chatbot to solve service issues or an option to connect with employees directly to solve complex problems.
  • Virtual assistant: Virtual assistant programs help businesses do different executive duties like scheduling appointments, and reply emails,... Chatbots also can work like virtual assistants like Siri from Apple and Cortana from Microsoft.
  • Now chatbots are an essential part of business, helping to change how businesses interact with customers, manage strategy, create potential customers and auto payment. Chatbots are growing day by day and in the future, it will increase human ability to become more creative in handling strategic activities.

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