What is the Difference Between Chatbots and Conversational AI?

August 31, 2024
Asude Sena Örentaş

Chatbots and conversations to increase customer engagement in the digital world based artificial intelligence (Conversational AI) technologies play an important role. Both technologies are used to interact with users but there are some important differences between them.

In this article, we will examine the differences between chatbots and conversational AI.

What isa Chatbot? What Does It Do?

Chatbots are software that respond based on specific commands and keywords. They work with pre-programmed rules and are usually designed to perform specific tasks. They have limited language comprehension and are usually They are used to respond to simple and repetitive questions. For example, a customer service chatbot can be used to answer frequently asked answer questions or perform simple operations.

Chatbots answering frequently asked questions in customer service, It is used in areas such as appointment scheduling and order status inquiries. It can offer product recommendations on e-commerce sites, shopping cart assistance and support in payment processes . Account balance inquiry in the banking sector, They perform tasks such as money transfer transactions and bill payment reminders. In the field of education , it’ s class schedule reminders, They can help with homework help and information about exam dates .

What is Conversational AI? What Does It Do?

Conversational AI, developed using artificial intelligence and natural language processing (NLP) and machine learning algorithms. This technology interacts naturally and fluently with users , seeking to understand their intentions and context. Has the ability to manage complex and dynamic conversations and is available for customer service sales, from marketing to support services .

Conversational AI, understanding and solving complex customer problems in customer service, tasks such as providing personalized service. Insales, product or service by having natural conversations with potential customers Promotes and offers product recommendations based on customer needs. Provides personalized campaigns and offers in marketing, create marketing strategies based on customer feedback. Manage patient appointments in the health sector, provide medical counseling and prescription reminders .

Key Differences Between Chat Bot and Conversational AI

Chatbot	Conversational AI
They have a limited ability to understand language. As they work based on specific commands and keywords, may find it difficult to fully understand what users are saying.	It is more advanced in understanding and interpreting natural language. It has the ability to understand users’ intentions, emotions and context.
They are based on specific commands and therefore have limited flexibility. They cannot go beyond pre-programmed rules.	It is more flexible and can respond by understanding the context. This allows for a more natural and fluid interaction with users.
It is usually suitable for simple and repetitive tasks. For example, providing product information on an e-commerce site or inquiring about a balance at a bank .	It is used for more complex interactions and tasks. For example, understanding customer complaints and suggesting solutions, like giving detailed product recommendations.
They are bound by fixed programmed rules and therefore have no ability to learn. Once they are programmed, they do not learn new information and continue to respond in the same way.	It improves itself over time thanks to machine learning algorithms. It produces more accurate and effective answers according to users’ questions and feedback.

Technological Requirements and Infrastructure

We can list the technological requirements for chatbots and conversational AI to work as follows:

Requirements for Chatbots:

Programming based on specific rules with simple coding.
Integration with websites and messaging applications.
A database of frequently asked questions and answers.

Requirements for Conversational AI:

Advanced artificial intelligence and machine learning algorithms, natural language processing (NLP) and deep learning technologies.
Powerful data processing infrastructure to analyze user interactions.
Cloud-based solutions for running AI models that require high processing power.

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Success Stories and Examples

Successful examples using chatbots and conversational AI, can help us better understand the potential of these technologies.

HM

Fashion brand HM uses a chatbot that offers customers outfit suggestions and facilitates the shopping process.

Domino's Pizza

Domino’s Pizza, able to take orders quickly and easily and provide customers with the increases customer satisfaction with a chatbot that provides information about the situation.

Sephora

Successful examples using Conversational AI include Sephora, offering skin care and makeup advice to clients, uses an artificial intelligence that makes product recommendations.

American Express

American Express, answering customers’ financial questions, managing account information and personalized financial advice AI-powered customer service .

Chatbots and Conversational AI have different capabilities and use cases for interacting with users. Chatbots are suitable for simple and repetitive tasks, while Conversational AI is ideal for more complex and natural interactions. By using these two technologies according to their needs, businesses can improve the customer experience and increase their operational efficiency. Both chatbots and Conversational AI play an important role in the digital transformation process and provide great advantages when used correctly.

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