Chatbot types compared: Which is the right one for your company?

Chatbots are a useful addition to many areas of business, from customer service and e-commerce to healthcare and the travel industry. However, in order to find the right chatbot for your company, it is important to understand and compare the different types of chatbot. In this article, I will show you the different types of chatbot, their advantages and disadvantages and their areas of application.

What are chatbots and how do they work?

To reiterate, chatbots are computer programs that interact with users via chat or voice platforms. They use artificial intelligence (AI) or rules to conduct human-like conversations with users. Chatbots can perform various tasks, such as answering questions, placing orders or collecting feedback. I have described more details about how chatbots work in the article“What is a chatbot?”.

Chatbot types based on the technology

In general, there are three types of chatbots based on technology: rule-based chatbots, AI-based chatbots and hybrid chatbots. Rule-based chatbots use a predefined set of rules to interact with users. AI-based chatbots use machine learning to learn from experience and become more human-like. Hybrid chatbots use a combination of rules and AI to process user requests. Most companies use hybrid chatbots to benefit from the advantages of rule-based and AI-based bots. You can find some chatbot examples in the article Chatbot examples.

Rule-based chatbots

Rule-based chatbots use predefined rules to interact with users. They are able to answer simple questions quickly and accurately as they are programmed to respond to known questions and answers. However, rule-based chatbots struggle to understand complex requests and can quickly reach their limits. I myself like to use the description: “Rule-based bots work according to the principle – he who asks, leads.”. A good example of this can be found in podcast episode #23.

Advantages of rule-based chatbots

• Easy to program and implement
• Fast and effective for simple questions
• More cost-effective than AI-based chatbots

Limitations of rule-based chatbots

• Difficulties in processing complex requests
• Limited ability to adapt and improve
• Limited ability to hold human-like conversations

AI-based chatbots

AI-based chatbots use machine learning to learn from experience and become more human-like. They can process complex requests and have the ability to conduct human-like conversations. However, AI-based chatbots can be expensive and time-consuming to program and implement. There are now many software-as-a-service solutions that offer good solutions for AI bots. I will also be happy to give you individual tips based on your requirements. Just send me an e-mail.

Advantages of AI-based chatbots

• Ability to process complex requests
• Ability to hold human-like conversations
• Possibility for continuous improvement and adaptation

Limitations of AI-based chatbots:

• Expensive and time-consuming
• Prone to errors if AI has not been sufficiently trained

Hybrid chatbots

Hybrid chatbots are a mixture of rule-based and AI-based chatbots. They combine the flexibility of AI-based chatbots with the precision of rule-based chatbots. Hybrid chatbots can automatically switch between rule-based and AI-based systems, depending on which method is best suited to answering a query. Companies often first use an AI bot to categorize the user’s request and then the bot switches to a rule-based system. Rule-based systems are also particularly suitable for running through fixed processes, such as damage reporting.

Advantages of hybrid chatbots

The advantages of hybrid chatbots lie in their flexibility and effectiveness. By using AI, hybrid chatbots can have more natural conversations and answer customer queries faster and more accurately than rule-based chatbots. However, if a question is outside the scope of the AI model, the chatbot can seamlessly switch to a rule-based method to answer the question.

Limitations of hybrid chatbots

One disadvantage of hybrid chatbots is that they are more complex to implement than rule-based chatbots. The integration of AI into the chatbot requires extensive training data and models, which can lead to higher development and maintenance costs. In addition, hybrid chatbots must be carefully tested to ensure that they work consistently and without errors.

Voice-based chatbots

Voice-based chatbots are chatbots that use speech recognition and processing technology to respond to spoken requests. These bots are often called voicebots. These chatbots use a combination of automated speech recognition and speech synthesis to conduct natural dialogs with users. Podcast episode #86 is also about voicebots, among other things.

Advantages of voice-based chatbots

Voice-based chatbots offer a high level of user-friendliness, as they allow users to make requests easily and quickly without using a keyboard. They also offer the option of making requests in natural language, which makes interaction with the chatbot even more natural. Voice-based chatbots are particularly useful in situations where users do not have their hands free, such as when driving.

Limitations of voice-based chatbots

One disadvantage of voice-based chatbots is that they are susceptible to interference from background noise. Users usually use longer explanations and more extensive descriptions on the phone. Longer statements are more difficult for a bot to process. In addition, speech recognition technology may have difficulty understanding certain dialects or accents, which can lead to inaccurate responses. The integration of voice technology into the chatbot also requires a high level of development and maintenance expertise.

Text-based chatbots

Text-based chatbots are one of the most frequently used types of chatbot. They use text input and output to communicate with users. They can be used in many different industries to improve customer support or act as purchasing advisors or service assistants in e-commerce websites and apps. Text-based chatbots can be either rule-based or AI-based.

Advantages of text-based chatbots

Text-based chatbots are also very scalable and can support a large number of users simultaneously. They are also easier to translate into different languages than voice-based chatbots.

Text-based chatbots are also able to provide users with quick and precise answers to their questions. They are able to deal with a wide range of topics, from simple FAQ queries to more complex inquiries, such as queries about products or services.

Limitations of text-based chatbots

However, text-based chatbots also have limitations. They are not as interactive as voice-based chatbots and can struggle to have complex conversations with users. They may also have difficulties helping users in different countries and cultures due to language barriers.

Areas of application for chatbots

Text-based chatbots are used in various industries to improve customer support, enhance shopping experiences and much more. Here are some examples of their areas of application:

Customer support

Text-based chatbots can be used in customer service to help users quickly and effectively with problems. They can also be used to sell products and services by guiding users through the purchase process.

E-Commerce

Text-based chatbots can be used in e-commerce websites and apps to help users search for products, place orders and track orders. They can also act as virtual shopping assistants and give users recommendations for products based on their preferences and search queries.

Travel industry

Text-based chatbots can be used in the travel industry to help users book flights, hotels and rental cars.

Conclusion: Which chatbot types are right for my company?

The question of the right type of chatbot cannot be answered in the same way for all companies. Rather, it is about companies becoming aware of their own needs and requirements and then determining the type of chatbot. My Virtual Agent Guide is a helpful tool for creating concepts.

But of course you can also contact me at any time and we can define and discuss your use case and requirements together. The best thing to do is to send me a short message via WhatsApp message or e-mail.

Chatbot types – Frequently asked questions & answers

How many types of chatbots are there?

There are different classifications of chatbots, but in general there are three main types of chatbots: rule-based chatbots, AI-driven chatbots and hybrid chatbots.

What are rule-based chatbots?

Rule-based chatbots follow fixed rules and scripts that have been defined in advance by the developers. They can only respond to certain questions and commands and offer little flexibility.

What are AI-powered chatbots?

AI-driven chatbots use machine learning algorithms to understand natural language and generate contextualized responses. They are also known as conversational AI.

What are hybrid chatbots?

Hybrid chatbots combine the advantages of rule-based and AI-driven chatbots by combining the flexibility of AI with the predictable nature of rules.

What are text-based chatbots?

Text-based chatbots communicate exclusively via text, either in the form of characters or emojis.

What are voice-based chatbots?

Voice-based chatbots use voice technology to interact with users and provide answers to spoken questions and instructions.

What are Progressive Web App (PWA)-based chatbots?

PWA-based chatbots are chatbots that are integrated into a progressive web app and are accessible via a web browser. You do not need to install it on a device.

What are messaging app-based chatbots?

Messaging app-based chatbots are integrated into instant messaging apps such as WhatsApp, Facebook Messenger or Telegram and allow users to communicate with them directly in the app.

What are social media-based chatbots?

Social media-based chatbots are integrated into social media such as Twitter, Facebook and Instagram and allow users to communicate directly with them.

What are service-based chatbots?

Service-based chatbots specialize in helping users solve problems or perform tasks such as booking flights or ordering food.

What are marketing-based chatbots?

Marketing-based chatbots are designed to attract and retain potential customers through interactions and personalized recommendations.

What are personal assistant-based chatbots?

Personal assistant-based chatbots are designed to help users with everyday tasks and decisions, such as scheduling appointments or booking travel.