Differences Between Conversational AI vs Traditional Chatbot

chatbot vs conversational artificial intelligence

Depending on their functioning capabilities, chatbots are typically categorized as either AI-powered or rule-based. With REVE Chat, you can start a free trial of a chatbot and other support tools and see how they would fit into the specific needs of your business. Most people can visualize and understand what a chatbot is whereas conversational AI sounds more technical or complicated. On the other hand, you can find many online services that allow you to quickly create a chatbot without any coding experience.

What are the two main types of chatbots?

As a general rule, you can distinguish between two types of chatbots: rule-based chatbots and AI bots.

Our customer service platforms utilize the power of bots and automated workflows to both streamline and improve the customer experience. By answering simple, frequently seen customer enquiries, they allow customer service agents to spend more time on tasks that require human input. Conversational AI chatbots have revolutionized customer service, allowing businesses to interact with their customers more quickly and efficiently than ever before. Chatbot technology is rapidly becoming the preferred way for brands to engage with their audiences, offering timely responses and fast resolution times. Whether you use rule-based chatbots or some conversational AI, automated messaging technology goes a long way in helping brands offer quick customer support. Maryville University, Chargebee, Bank of America, and several other major companies are leading the way in using this tech to resolve customer requests efficiently and effectively.

AI: A practical solution to customer service woes

You may want to opt for a chatbot platform that has both AI chatbots and rule-based chatbots so you can have the best of both worlds. For example, you might use a rule-based chatbot on your home page to quickly qualify your site visitors. Meanwhile, you might use an AI chatbot on a more high-intent page like a pricing page to answer a buyer’s specific questions.

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If you know what people will ask or can tell them how to respond, it’s easy to provide rapid, basic responses. Finally, conversational AI can enable superior customer service across your company. This means more cases resolved per hour, a more consistent flow of information, and even less stress among employees because they don’t have to spend as much time focusing on the same routine tasks.

The difference between an AI that is conversational and one that is rule-based or scripted

As you know already, conversational AI has been developing to mimic emotional human interaction. Therefore, it’s become hard for people to notice who exactly they are communicating with. Today, conversational AI chatbots are highly advanced and can emulate human interaction well because of sentiment analysis technology.

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It is estimated that customer service teams handling 10,000 support requests every month can save more than 120 hours per month by using chatbots. Using that same math, teams with 50,000 support requests would save more than 1,000 hours, and support teams with 100,000 support requests would save more than 2,500 hours per month. You can create bots powered by AI and NLP with metadialog.com chatbot providers such as Tidio. You can even use our visual flow builder to design complex conversation scenarios. However, both chatbots and conversational AI can use NLP and find their application in customer support, lead generation, ecommerce, and many other fields. Both types of chatbots provide a layer of friendly self-service between a business and its customers.

Conversational AI Against Global Challenges

In addition, AI-enabled bots are easily scalable since they learn from interactions, meaning they can grow and improve with each conversation had. While some chatbots work based on a predefined conversation flow, others use technologies like artificial intelligence (AI) and natural language processing (NLP) to converse with users. Chatbots are often so advanced that they can easily decipher user questions and offer automated responses in real time.

chatbot vs conversational artificial intelligence

In other words, you have confused the chatbot with an unforeseen query it wasn’t programmed to answer. This is to be expected since basic chatbots aren’t designed to find answers independently without prior programming. A chatbot is a service that, in its most basic form, responds through pre-programmed rules to queries it receives through a messaging interface. Rather, you ask it a question or tell it to do something (such as order a product or make a reservation), and it responds accordingly. These messaging platforms have become increasingly sophisticated, with capabilities far beyond simply enabling users to send and receive text messages, photos, and videos. Many of them allow users to exchange documents and files, voice memos, location information, and sometimes even cash.

Contact Center of the Future: Empower Agents with AI…

And with the development of large language models like GPT-3, it is becoming easier for businesses to reap those benefits. In fact, they are revolutionizing and speeding up the adoption of conversational AI across the board, making it more effective and user-friendly. Conversational AI can draw on customer data from customer relationship management (CRM) databases and previous interactions with that customer to provide more personalized interactions. Because it has access to various resources, including knowledge bases and supply chain databases, conversational AI has the flexibility to answer a variety of queries. Their multi-lingual capabilities allow them to translate customer requests into a range of languages and still remain efficient.

chatbot vs conversational artificial intelligence

Conversational AI lets for a more organic conversation flow leveraging natural language processing and generation technologies. Conversational AI is the umbrella term for all chatbots and similar applications which facilitate communications between users and machines. Conversational AI models have thus far been trained primarily in English and have yet to fully accommodate global users by interacting with them in their native languages. Companies that conduct customer interactions via AI chatbots must have security measures in place to process and store the data transmitted. Finally, conversational AI can be thrown off by slang, jargon and regional dialects, which are all examples of the changing nature of human languages. Developers must train the technology to properly address such challenges in the future.

Chatbots vs. Conversational AI: What are the business values?

The internet of things (IoT) uses conversational AI, mainly in the form of voice assistants, like Alexa or Siri. In 2022, on average, 26% of internet users between 16 and 34 years used voice assistants to find information. That’s why Yellow Class, an organization from India that offers free hobby classes for children, uses a WhatsApp chatbot to answer common customer questions. Conversational AI chatbots are also quite common in tourism, whether it’s with airlines, hotels, or travel agencies. The bots can help customers book reservations, send confirmations, and provide general information to travelers.

chatbot vs conversational artificial intelligence

One of the earliest known examples of this is ELIZA, created by MIT professor Joseph Weizenbaum in the 1960s. Depending on your use cases, you might want to also integrate with your other back-end systems like your CRM or accounting software. This way, the conversational AI can actually pull in data from these sources to resolve customer service issues on an individual basis without human intervention. NLP is frequently interchanged with terms like natural language understanding (NLU) and natural language generation (NLG), but at a high level, NLP is the umbrella term that includes these two other technologies. To the contrary, when applying conversational AI tools to customer support situations, your agents will actually get to do the best parts of the job better and more often.

Real Marketing and Customer Experience Questions — and ChatGPT’s Answers

Chatbots can handle low-level customer queries and give agents the time and space to handle more complex issues. Not only will this result in better customer service, but agents will be happier and less stressed overall. Natural language processing (NLP) uses AI technology to help chatbots understand that those questions are all asking the same thing. It also can determine what information it needs to answer your question, like color, size, etc. Our customer service solutions powered by conversational AI can help you deliver an efficient, 24/7 experience  to your customers.

Is Siri a ChatterBot?

Technologies like Siri, Alexa and Google Assistant that are ubiquitous in every household today are excellent examples of conversational AI. These conversational AI bots are more advanced than regular chatbots that are programmed with answers to certain questions.

This trend will likely continue to grow as more people become comfortable with voice-based search and expect a more conversational experience. In addition, the breach or sharing of confidential information is always a worry. Because Conversational AI must aggregate data to answer user queries, it is vulnerable to risks and threats.

Put it all together to create a meaningful dialogue with your user

But the truth is you don’t need to have a PhD in NLP (or even be a programmer) to set up an AI chatbot. LUIS can be used to create custom language processing capability for any local language by training the model to process new utterances of a custom language model. Also, there are built-in security features available to keep the LUIS API accessible in a secured way.

chatbot vs conversational artificial intelligence

This will allow them to provide even more personalized responses tailored to users’ needs and preferences. Conversational Virtual Assistant is a contextually aware Virtual Chatbot, using natural language understanding (NLU), NLP, and ML to actually acquire new knowledge even as they operate. They can also utilize their predictive intelligence and analytics capabilities to personalize conversational flows and response based on user profiles or other information made available to them. A Chatbot AI can even remember a user’s preferences and offer solutions and recommendations, or even guess at the person’s future needs, as well as initiating conversations.


Conversational AI is used in healthcare to support nurses, doctors, and other care providers. Healthcare companies use these chatbots to answer questions that patients have about their appointments or medications. In a particularly alarming example of unexpected consequences, the bots soon began to devise their own language – in a sense. For example, in the conversation above, the bot didn’t recognize the reply as a valid response – kind of a bummer if you’re hoping for an immersive experience. Now that we’ve established what chatbots are and how they work, let’s get to the examples. Here are 10 companies using chatbots for marketing, to provide better customer service, to seal deals and more.

  • Instead of manually looking through candidate credentials, which can take a lot of time, Conversational AI can do it for you.
  • The Belgian wealth management company, Foyer, is already putting this to use in their HR department.
  • Essentially, speech recognition takes what you say and turns it into editable text.
  • AI chatbots can leverage AI and machine learning algorithms to analyze large human interactions and emotional datasets.
  • A chatbot’s main mission is to tackle one specific need for a large number of people.
  • Just as many companies have abandoned traditional telephony infrastructure in favor of Voice over IP (VoIP) technology, they are also moving increasingly away from simple chatbots and towards conversational AI.

Is AI and chatbot the same?

ChatGPT is a natural language processing tool driven by AI technology that allows you to have human-like conversations and much more with the chatbot. The language model can answer questions and assist you with tasks, such as composing emails, essays, and code.



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