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Published April 17, 2023

What is AI chatbot and why should you use it

AI chatbots are increasingly popular. Let's look at how they work, their features, and how to implement them in your business.

With the advancements in artificial intelligence (AI) technology, chatbots have become increasingly popular in recent years.

In this article, we’ll take a closer look at AI chatbots, how they work, their features, and how you can implement them in your business.

What is an AI chatbot?

An AI chatbot is a computer program that uses artificial intelligence to interact with human users in a conversational manner, providing a more personalized experience. It uses conversational AI to simulate conversation with human users, helping to provide instant solutions to their queries. These chatbots are designed to understand natural language, answer questions, and provide solutions for customer interaction, making them a valuable tool for businesses.

Chatbot software with advanced AI can be used for a wide range of cases including customer service, search engines, and financial services. It helps companies to improve their efficiency and customer satisfaction by providing clients with quick and accurate responses.

Additionally, AI chatbots can be integrated with other systems to provide even more value, such as CRM systems and marketing automation software. Overall, AI chatbots represent a robust instrument for businesses looking to enhance customer engagement and streamline operations.

How an AI chatbot works

AI chatbots use natural language processing (NLP) technology to understand text based user input and generate appropriate responses. NLP is a complex and sophisticated technology that uses computational linguistics to analyze and interpret human language. By breaking down language into its constituent parts, an NLP system can understand the meaning of a sentence and respond accordingly.

In addition to NLP, chatbots also use machine learning algorithms to improve their performance over time. These algorithms allow the chatbot to learn from experience by analyzing the effectiveness of its responses and adjusting its behavior accordingly. This feedback loop is critical to the success of a chatbot, as it allows the AI tools to continuously improve and provide better service to users.

Overall, an AI chatbot is a powerful tool that you can use to automate customer service, provide information, and even entertain users. By leveraging the latest advances in NLP and machine learning, chatbots are becoming increasingly sophisticated and capable of delivering more natural and human-like interactions.

As technologies and language models evolve, we can expect chatbots to become an even more integral part of our daily lives.

How an AI chatbot features

An AI chatbot is a revolutionary tool for customer interaction. Its many features make it incredibly effective at providing excellent service.

Look at the main ones:

  • Real-time interaction. It’s one of the most outstanding AI chatbot features. It allows customers to get immediate answers to their queries, making the chatbot an incredibly useful tool for businesses.

  • Understanding natural language. Thanks to this feature, customers can interact with a business in a more conversational manner. This makes the chatbot easy to use and helps to create a more positive customer experience.

  • Ability to solve customer issues. This can be particularly helpful when dealing with customer service issues. The chatbot can also identify inappropriate requests, ensuring that customers are not exposed to inappropriate content.

  • Providing personalized experiences. For example, AI chatbots can recommend products or services based on user preferences, making the customer feel valued and appreciated.

  • Protecting customer information. With AI chatbots’ advanced security features, they can provide a high level of protection for customer data effectively.

All of these features make AI chatbots an essential tool for businesses looking to provide excellent customer service.

How an AI chatbot can be used in business

AI chatbots have numerous applications in the business world. They can be utilized across a wide range of areas, such as in sales, customer service, and marketing. In customer service, they can assist customers by answering queries, providing helpful product recommendations, and processing orders. AI chatbots can also help businesses gather valuable customer feedback and improve the overall user experience.

Moreover, companies use AI chatbots to automate mundane and repetitive tasks, freeing human employees to focus on more complex tasks requiring human problem-solving skills. These tasks may include decision-making, critical thinking, and creativity, areas in which humans excel compared to AI chatbots. As such, AI chatbots are a valuable addition to a business’s workforce, allowing for more efficient and effective operations in various areas of the business.

5 best AI chatbots

Here are five examples of the AI chatbots used by brands across industries:

  1. Sephora’s Virtual Artist

It is an AI-powered chatbot allowing users to try makeup virtually and get personalized makeup recommendations. The chatbot uses augmented reality technology to simulate makeup looks on users' faces, helping them find the perfect products to suit their complexions and preferences. Sephora’s Virtual Artist is available on the Sephora website and mobile app.

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Sephora Virtual Artist. Source

  1. Domino’s Pizza chatbot Dom

It allows customers to place orders via Facebook Messenger by providing their location and pizza preferences. The chatbot uses NLP technology to understand customer requests and suggest relevant options. Customers can also track their orders and receive updates via the chatbot. Domino’s Pizza chatbotis available on Facebook Messenger.

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Domino's Pizza chatbot Dom

  1. Amtrak’s chatbot Julie

It is an AI-powered virtual assistant that can answer customer questions and help them book train tickets. Julie uses NLP technology to understand customer queries and provide relevant information. Customers can also use Julie to manage their bookings, make changes to their reservations, and receive updates on train schedules. Amtrak’s chatbot is available on the Amtrak website and mobile app.

Amtrak's chatbot Julie

  1. Lyft’s chatbot

It is an AI-powered chatbot that helps customers schedule rides and get ride updates via Facebook Messenger. The chatbot uses NLP technology to understand customer requests and provide relevant information. Customers can also use the chatbot to track their rides, rate their drivers, and get help with any issues. In addition, Lyft’s chatbot allows customers to request rides via chat or voice. It provides real-time updates on the driver’s location, including the car model and license plate. Lyft’s chatbot is available on Facebook Messenger.

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Lyft's chatbot

  1. Mitsuku chatbot

It is an AI chatbot that can hold a conversation with users and provide helpful responses. It uses natural language processing and machine learning algorithms to understand user input and generate appropriate responses. Mitsuku has won the “Loebner Prize” award several times. It is available on various platforms, including Facebook Messenger and Kik.

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Mitsuku chatbot

These five AI chatbots provide an excellent example of how businesses can leverage AI technology to improve customer interaction and user experience. With the right AI chatbot, companies can provide instant solutions to customer queries, improve their sales, automate tasks, and enhance their overall business performance.

Start your own AI journey with Chatfuel

Chatfuel is one of the biggest code-free platforms in the market. Small brands and giants like Visa, Lego, Adidas, Netflix, Nivea, and many others have used it to automate their tasks and customer communication since 2015.

Our customers already use Chatfuel to automatically educate prospects about their brands, respond to their questions, recommend products and services, and improve sales.

Don’t wait — sign up today and get a cost-effective solution to automate your tasks and enhance your overall business performance.