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:
- What is an AI chatbot?
- How do they work?
- Why use an AI chatbot at all?
- AI chatbots vs rule-based bots
- What can AI chatbots do?
- Using Lindy to create your custom-made chatbot
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 they work their magic? AI chatbots use natural language processing and machine learning to understand any question and provide an appropriate response, even if they've never heard that particular question before. AI is the only way to go if you want a chatbot that can truly engage customers.
- Why would you want one? AI chatbots never sleep, so they're perfect for giving 24/7 customer support. Plus, they can handle multiple conversations at once and easily scale to meet increased demands. AI chatbots also reduce costs since they minimize the need for human agents.
- Not all chatbots are created equal. Rule-based chatbots follow predefined rules to determine responses. They only understand questions and commands they've been programmed to handle.
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.
- They listen and learn. AI chatbots constantly listen, learn, and improve from every conversation. The more people chat with them, the smarter they get. Chatbots analyze all the data from conversations to determine patterns, understand language, and interpret intent.
Over time, they can get scarily good at understanding what we say — even if we don't say it very clearly!
AI chatbots can handle complicated questions and have fluid conversations, not just provide scripted responses like old-school chatbots.
- They “get” context. Unlike basic chatbots that just match keywords, AI chatbots get the gist of context and semantics. They can follow the flow of a conversation, understand references to previous messages, and stay on topic based on the context.
If you start talking about pizza and then switch to movies, an AI chatbot will make the connection and keep up, whereas a basic chatbot would get confused and respond with something scripted.
- They don’t do generic. AI chatbots don't just give pre-programmed, set responses. They generate responses dynamically based on what they’ve learned from all their data and interactions. The responses feel more natural because the chatbots have a sense of conversation flow and personality. They also learn your preferences over time and can personalize responses.
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.
- They never sleep. While your reps need to recharge after a long day of helping customers, AI chatbots are always on and ready to assist. They’re online 24/7, so your customers can get help anytime.
- Consistently high-quality experience. Ever get frustrated with an unhelpful customer service rep? With AI chatbots, you'll avoid inconsistencies and make sure every customer has a great experience.
An AI chatbot has analyzed millions of conversations before being deployed. Thus, these bots know how to handle objections, understand customer pain points, and provide the best responses. Your customers will be delighted with the fast, personalized service.
- Many people don’t want to interact with human reps. The study mentioned above points out that 40% of consumers don’t really care whether they’re talking to a human anymore, and would rather just “get on with it.” If anything, that trend is set to deepen in the coming years as chatbots get smarter.
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:
- AI chatbots are trained on huge datasets of human conversations so they can understand natural language and respond appropriately, just like a real person.
- Rule-based chatbots, on the other hand, rely on very basic “if-then” logic to map keywords and phrases to pre-written responses. They have no intelligence or natural language processing capabilities whatsoever.
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:
- Handle customer service with increasing sophistication: AI chatbots can tackle FAQs, basic queries, track orders, and process transactions. More advanced chatbots can handle complex scenarios, personalize interactions, and seamlessly escalate to human agents for nuanced issues.
- Initiate meaningful conversations for lead generation: These chatbots understand nuances in language, building better rapport with potential customers and identifying leads with greater precision. They might even use personality analysis to tailor their communication approach.
- Provide adaptive, personalized learning: AI chatbots customize explanations based on student understanding, offering tailored feedback and addressing complex questions effectively. Some can even analyze student responses to gauge emotional state and provide appropriate encouragement.
- Become a helpful (and increasingly competent) personal assistant: They set reminders, manage schedules, and control smart home devices. Advanced assistants might proactively suggest actions based on your habits or integrate with external services to book appointments, order groceries, etc.
- Support healthcare workflows: AI chatbots assist with symptom checking and appointment scheduling. Some can generate HIPAA-compliant notes (with careful oversight) or guide patients through post-treatment care, streamlining tasks for busy healthcare professionals.
- Comprehensive research and data gathering: They can scour the web, databases, and company resources to find specific information, compile reports, and present insightful summaries. More advanced models might analyze patterns or provide data visualization.
- Email management and prioritization: AI assistants can filter your inbox, flag urgent items, draft replies to routine emails, and highlight emails requiring your personal attention. Some can even learn your writing style to offer more accurate draft responses.
- Document and knowledge management: These assistants can organize files, categorize information, maintain company wikis or knowledge bases, and locate the resources you need in a snap. They might even integrate with content creation tools to summarize information.
- Proactive reminders and task follow-up: They can remind you about deadlines, follow up on outstanding items from meetings, and nudge you to complete necessary actions. Some might even provide progress updates or offer to reschedule if they flag conflicts.
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
- Visit the Lindy website and create an account.
- Select or create a template that matches the kind of tasks you want your Lindy to handle (e.g., scheduling, customer service, to-do management, competitor analysis).
Step 2: Provide instructions
- Identify tasks to pinpoint exactly what you want Lindy to do (e.g., schedule meetings, answer customer questions).
- Write thorough guidelines and give Lindy lots of examples for each task. The clearer your guidelines, the better your chatbot will perform.
- Set up triggers to configure Lindy to perform tasks automatically based on specific events (e.g., new emails, calendar changes).
- Connect integrations: Lindy offers over 3,000 integrations with tools like Google Calendar, Slack, Zendesk, and more. Choose the ones relevant to your chatbot's tasks.
Step 3: Configure integrations for email/Slack
- First, explore Lindy's available integrations for email (Gmail, Outlook, etc.) and Slack. If it’s on the list, Lindy will allow you to connect within minutes!
- Set up triggers and actions suitable to your Lindy’s purpose. Here are some possibilities:
- Customer service: Have your Lindy monitor a support email inbox for new inquiries or messages in a designated Slack channel.
- Scheduling: Allow your Lindy to book meetings based on messages or calendar invitations.
Things to remember:
- You want clarity: The better you explain your desired tasks, the better Lindy will understand and perform them.
- Give feedback: Guide Lindy by providing feedback on its responses. This helps it learn and improve over time.
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.
