Chatbots have been omnipresent in the digital world since ChatGPT at the latest. But what exactly is a chatbot? In short, a chatbot is a piece of software designed to communicate with human users in natural language. In essence, it is a kind of robot that sends automated messages to users and reacts to their input. Chatbots are often also referred to as digital assistants. Companies often use chatbots to answer their customers’ queries automatically around the clock.
How does a chatbot work?
A chatbot can be based on either rule-based programming or artificial intelligence (AI). Rule-based chatbots use a predefined set of rules and instructions to respond to user requests. AI-based chatbots, on the other hand, use machine learning and neural networks to have human-like conversations and continuously improve.
Chatbots that respond to user requests with the help of large language models (LLMs) are new. One of the best-known chatbots of this type is ChatGPT from OpenAI. But companies such as Helvetia Switzerland are also already experimenting with the ChatGPT API in their chatbot. Chatbots that use LLMs to process and create natural language can be used much more widely than classic AI-based or intent-based chatbots.
What types of chatbots are there?
The question of chatbot types can be answered in many ways. Chatbots can be sorted by function or area of application.
A distinction is usually made between rule-based and intent-based chatbots in terms of how they work. Chatbots based on Large Language Models (LLMs) are another new subdivision. Some hybrid bots are also mentioned at this point. Hybrid chatbots means either a chatbot that works both rule-based and intent-based. Hybridbot can also be a chatbot that answers questions automatically but is also connected to a live chat. Hybrid means the combination of a human employee and an artificial chat robot.
Chatbot types can also refer to the different possible applications of chatbots. In this case, there are the following types: customer service chatbots, marketing chatbots, personnel chatbots, educational chatbots, and internal service bots (list is not exhaustive).
The advantages of chatbots
There are many advantages of chatbots. One of the biggest advantages is the ability to communicate more effectively with customers, as chatbots are available 24/7. Chatbots can also help to reduce the workload of human employees, as they can handle simple tasks and requests automatically. Both can lead to an increase in customer and employee satisfaction. In individual cases, the use of AI-based chatbots also offers companies the opportunity to better respond to the individual needs of their customers.
Areas of application for chatbots
Chatbots can be used in various areas, including customer service, sales and marketing, human resources, education and training, healthcare and travel and tourism. In these areas, chatbots can help to increase efficiency and productivity and improve customer service.
Chatbot examples: How chatbots are used in practice
Some examples of the use of chatbots include customer service chatbots that automatically respond to customer inquiries, marketing chatbots that send personalized messages, and human resources chatbots that can help with hiring and training employees. Other applications of chatbots include health chatbots that make diagnoses and give medical advice, and travel chatbots that can book flights and accommodation. A large number of chatbot examples are explained in this article.
What does a chatbot cost?
The costs for the development and implementation of chatbots can vary greatly depending on the type of chatbot and the specific requirements of the company. Rule-based chatbots can be developed relatively easily and inexpensively, while AI-based chatbots are generally more expensive. Some factors that can influence the costs are concept development, programming, hosting and maintenance costs as well as integration. This article explains the costs of chatbots in more detail.
Tips for choosing the right chatbot
Fancy using a chatbot in your own company? Then I recommend that you first think about the tasks and functions of your bot. Only when the most important requirements have been clarified does it make sense to decide on a technology. The Virtual Agent Guide can serve as a helpful tool.
If you are directly considering a chatbot with an LLM, the ChatGPT and LLM Canvas is certainly the right tool for you.
Chatbot advice from Sophie Hundertmark
Of course, I am also happy to advise you on the use of chatbots or voicebots. It usually starts with a brief analysis of potential. Together, we will find out whether chatbots are the right tool to solve your challenges and problems. I will then support you in creating the concept, choosing the technology and, of course, in the implementation and further development of your chatbot. We can arrange a non-binding meeting – please contact me by WhatsApp message or by e-mail. I look forward to your inquiries!
What is a chatbot – Frequently asked questions & answers
What is a chatbot?
A chatbot is a computer program that automatically responds to user requests by processing text or voice messages. Chatbots are used in various areas, such as customer service, marketing or education.
How does a chatbot work?
Chatbots can be either rule-based or AI-based. Rule-based chatbots use predefined rules and patterns to answer user queries. AI-based chatbots use techniques such as machine learning, neural networks and natural language processing (NLP) to interact with users in a more natural way.
Why are chatbots useful?
Chatbots are useful because they are available around the clock, shorten response times and increase efficiency. They can also help improve customer service, support sales and provide personalized user experiences.
Where are chatbots used?
Chatbots are used in many areas, such as customer support, e-commerce, marketing, education and training. They can be integrated into messaging platforms, social media, websites or mobile apps.
Are chatbots secure and what about data protection?
Chatbot developers should consider data protection and security from the outset. To protect personal data, chatbots should only collect and store necessary information and adhere to strict data protection guidelines. They should also be protected against potential security risks such as hacking or data leaks.
