Chatbots vs conversational AI may sound an awful lot like “tomato, tomahto.” Isn’t this a “same difference” scenario?
Turns out the answer is no.
But don't worry. We're here to clear out any misconceptions. In just a few minutes, you'll be a chatbot vs. conversational AI pro.
We'll quickly go over what these technologies are, what makes them different, and help you decide when you should use one versus the other.
We’ll cover:
- Which one is right for you?
- What is a chatbot?
- What is conversational AI?
- What can you use each one for?
- FAQs
Let’s get started!
Chatbot vs. conversational AI: Which is right for you?
Do you need the TL;DR version? Can’t be bothered to read through the whole chatbot vs conversational AI debate?
Don’t worry, we’ve got the Cliff’s Notes version right here. The choice comes down to what you need and how quickly you need it.
A chatbot is a computer program designed to simulate conversations with humans, often used for basic customer service tasks.
A conversational AI is an advanced technology that enables computers to understand and respond to human language in a more natural and nuanced way, leading to sophisticated interactions.
Let’s go a bit deeper:
- When to use chatbots: If you've got a simple query like "What's the weather today?" or "How do I reset my password?", a chatbot is what you’re after. Chatbots are programmed to respond to specific questions and basic requests. They'll give you a quick answer and move on. No fuss, no muss.
- Conversational AI for complex conversations. But say you've got a more open-ended question, or you want to explore a topic in depth. That's where conversational AI shines. Powered by machine learning, AI assistants are designed to have natural and engaging conversations on a range of topics.
They can answer follow-up questions, provide examples and analogies, and even make recommendations based on their knowledge and your interests.
- Best of both worlds. Some companies offer chatbots and AI assistants, as needed. It's best to use both chatbots and conversational AI when you want a solution that offers a scalable, efficient way to handle high volumes of customer interactions while providing the ability to seamlessly escalate complex queries to a more sophisticated system for personalized, nuanced resolutions.
Chatbots handle the initial volume of simple interactions, freeing up human agents and conversational AI to focus on the more nuanced and complex cases.
What is a chatbot?
Chatbots are software programs that can have conversations with people through messaging apps, websites, mobile apps, and more. They’re akin to virtual assistants who are programmed to understand language and respond appropriately, but in a more limited way than their older siblings.
- They’re not as intelligent as you might think. Chatbots are not all-knowing oracles. They’re programmed to have basic conversations based on a limited set of questions and responses. Chatbots are often designed to handle simple, repetitive tasks like answering FAQs or processing basic customer service requests. They work based on keywords and scripts.
- Great for customer service, not so much for therapy. Chatbots shine when they take over repetitive customer service tasks like answering basic questions, handling account lookups, and providing quick responses. They’re not equipped to offer advice on personal issues or have nuanced discussions, so don’t pour your heart out to one.
What is conversational AI?
As we established above, chatbots are software programs that can have conversations with people using pre-set responses.
But a conversational AI is smarter — it understands natural language and context, so it can have more complex, nuanced conversations. Think of chatbots as basic autoresponders, while conversational AI is more advanced and personalized.
Let’s take a look at some of its features:
- Conversational AI gets it. It uses machine learning and natural language processing (NLP) to understand the context and intent behind what you're saying, so it can respond appropriately — even if you change the subject or ask complex questions.
- The possibilities are endless. You could use a conversational AI to book flights, get recommendations for local restaurants, control smart home devices, provide customer support, summarize meetings, manage your schedule, and so much more. Some companies are already using conversational AI for recruiting, education, healthcare, and finance.
What can you use chatbots and conversational AI for?
Still not quite sure where you stand on the chatbot vs conversational AI dilemma? Let’s take a look at some use cases, and how you can leverage this tech to your advantage:
Customer Support
Chatbots:
- Repetitive tasks like FAQs
- Order tracking
- Simple troubleshooting
Conversational AI:
- Resolving technical problems with personalized guidance
- Offering product recommendations tailored to the user's history and preferences
Lead Generation
Chatbots:
- Initiate conversations
- Qualify leads with basic questions
- Transfer promising leads to sales teams or to conversational AI systems
Conversational AI:
- Detect shifts in customer sentiment (positive, negative, frustrated, etc.) and trigger appropriate responses (e.g., escalating to a live agent when frustration is high).
- Use customer profiles and interaction history to suggest the most relevant products/services or adjust the language of promotional materials.
- Reference previous conversations to avoid asking the customer to repeat information or to proactively address unresolved issues.
Education and Training
Chatbots:
- Deliver standardized lessons
- Offer quizzes
- Provide basic feedback
Conversational AI:
- Adapts explanations based on student responses, offering a more personalized learning experience
- Handles complex questions that require greater understanding
- Can help create personalized study and course materials
Personal Assistants
Chatbots:
- Handle basic tasks like setting reminders
- Basic, non-conversational schedule management
- Controlling smart devices
Conversational AI:
- For example, instead of only handling "What is the weather today?", the AI could understand, "Do I need an umbrella today?"
- Analyze past interactions to suggest actions or information. For instance, if the user frequently buys concert tickets, the AI might suggest upcoming shows in their preferred genres.
Healthcare
Chatbots:
- Guide patients through basic symptom assessments, directing them to appropriate resources
- Allow patients to schedule appointments without the need for phone calls
- Handle straightforward refill requests
Conversational AI:
- Offer initial support, crisis intervention, and connect users to therapists for deeper care
- Monitor vital signs and provide tailored fitness and nutrition recommendations based on individual data
- EHR-ready SOAP notes just from dictation
Finance
Chatbots:
- Check balances and provide transaction histories
- Track spending habits and offer simple budget optimization tips
- Facilitate small transfers or bill payments
Conversational AI:
- Analyze financial data and offer personalized investment recommendations
- Monitor transactions and flag unusual activities for investigation
Of course, this is just scratching the surface.
Frequently asked questions
What’s the difference between a chatbot and conversational AI?
Chatbots are programmed to have basic conversations based on predefined rules and scripts. They typically respond with canned answers to common questions. Conversational AI uses machine learning and natural language processing (NLP) to have more human-like conversations.
So chatbots are dumb and conversational AI is smart?
Chatbots can be useful for simple tasks like customer support FAQs or taking pizza orders. But they lack the ability to understand complex sentences or continue a coherent conversation.
Conversational AI is more sophisticated and aims to replicate natural human dialogue. The key is that it learns from interactions, gets smarter over time, and can handle more nuanced conversations.
Should I use a chatbot or conversational AI for my business?
It depends on your needs. If you want to automate simple questions and tasks, a chatbot may do the trick. But for truly engaging customer experiences, conversational AI is the way to go.
Some options:
- Chatbot: FAQ bots, survey bots, appointment scheduling bots.
- Conversational AI: Customer service bots, shopping assistants, healthcare bots.
Chatbot vs conversational AI: How do I decide?
Here are a few questions to help determine if you need a chatbot or conversational AI:
- Do you need to handle simple, repetitive questions? Go with a chatbot.
- Do your customers expect personalized, contextual conversations? Conversational AI is a must.
- Is natural language understanding important for your use case? Conversational AI has the edge here.
Summing up
So, in the chatbot vs conversational AI battle, who wins? While conversational AI clearly has the edge, it’s not always an either/or scenario.
Chatbots are helpful for simple tasks, but if you want something more human-like that can understand nuance and even pass the Turing test, conversational AI is what you’re after.
Next steps
Lindy isn't your average chatbot. She's a powerful conversational AI that combines the best of both worlds, delivering the efficiency of a chatbot with the advanced capabilities of conversational AI.
Here's some of the ways she can help:
- Proactive inbox management: Lindy tackles customer inquiries in your support inboxes or her own dedicated email, slashing response times and boosting customer satisfaction.
- 24/7 availability: Lindy offers instant support around the clock, giving your customers the help they need, anytime.
- Multilingual support: Lindy breaks down language barriers, communicating in 13+ languages to reach a global audience.
- Website embedding made easy: Add Lindy to your site with a simple code snippet for enhanced customer engagement.
- Effortless integration: Lindy seamlessly syncs with over 3,000 tools (like Stripe and Intercom) in minutes.
- Scale infinitely: Lindy effortlessly handles any volume of requests and can collaborate with other Lindy instances for complex workflows.
