What is an AI Chatbot? Explained

AI chatbots are getting smarter by the second, constantly soaking up data and exponentially increasing their capabilities. 

But are chatbots really the massive business boosters that they’re hyped up to be? Let’s explore the pros, cons, and all the things AI chatbots can achieve so you can decide if it's time to get your own.

 

We’ll cover: 

Let’s take it from the top!

What is an AI chatbot?

AI chatbots use artificial intelligence and machine learning to understand what people say and respond appropriately in a natural way. Think of them as virtual assistants — only bigger, better, faster, and with ever-increasing capabilities. 

Let’s get into the TL;DR details: 


How do AI chatbots work?

So, how do these AI chatbots actually work their magic? It's not sorcery, but it is pretty advanced tech. 

AI chatbots use machine learning algorithms and natural language processing (NLP) to understand what humans are saying and generate responses based on intent. In other words, they learn from incredibly massive datasets, so they can figure out what you really mean and respond appropriately.

Why use an AI chatbot?

There’s plenty to love about an AI chatbot. Here’s what you can get out of it: 

You’ll save lots of time and money. Want to slash your customer service costs by 30%? AI chatbots are the answer. They can handle 80% of customer queries, freeing up your talented human agents to focus on more complex issues — only when escalation is required. 

AI chatbots vs. rule-based chatbots

Chatbots come in two main flavors: AI chatbots and rule-based chatbots.

Let’s take a look at each:

If you want a chatbot that can handle complex queries, analyze emotions, personalize responses, and learn from every conversation, an AI chatbot is the way to go. 

Rule-based chatbots are, as a rule of thumb, simpler and cheaper but can only handle very basic questions and provide generic responses.

In the end, the choice comes down to your needs and budget. 

If you're a big company looking to provide personalized customer service at scale, invest in an AI chatbot. 

If you just need a basic chatbot to answer FAQs on your website, a rule-based chatbot should do the trick. Just don't expect it to understand anything more complex than “What are your hours of operation?” Without AI, it’s not good for much more. 

What can AI chatbots do?

AI chatbots can handle a variety of tasks for businesses and customers. 

Here’s some of what they can do: 

Building your own AI chatbot with Lindy

Ready to take advantage of AI chatbots? Lindy is the #1 AI assistant, offering a limitless toolbox of customizable agents ready to tackle your every business or individual need. 

Lindy does this by allowing you to create “Lindies,” each focused on a specific task from either a pre-made or custom-built template. The kicker? Lindies can communicate with each other to complete tasks! 

How do you create your Lindy? We’ll walk you through the process: 

Step 1: Sign Up and choose a template

Step 2: Provide instructions

Step 3: Configure integrations for email/Slack

Things to remember: 

Summing up

AI chatbots are bringing in rapid-fire changes to the way businesses and individuals interact. Their ability to understand complex conversations, personalize responses, and learn continuously makes them a super-powerful tool. 

So, if you're looking for ways to automate tasks, improve customer service, or simply make your life easier, an AI chatbot like Lindy might be the solution you need. 

Try out Lindy for free.