AI Chatbots and Conversational AI

- Overview

A chatbot is a software that simulates a human-like interaction when engaging customers in a conversation, whereas conversational AI is a broader technology that enables computers to simulate conversations, including chatbots and virtual assistants. Essentially, the key difference is the complexity of operations.

Chatbot responds with predefined answers based on programmed rules. However, conversational AI offers a more advanced and dynamic approach, enabling more natural, personalized, and intelligent conversations with customers, and has proven to offer significantly improved CX (Customer Experience) and reduced costs over traditional chatbots. 

AI chatbots are a type of conversational AI, which is a broader term that refers to AI-driven communication technology:

• AI chatbots: These computer programs can simulate human conversations, providing personalized responses and tailoring conversations based on user information. They can learn and improve over time, and can route users to a support representative when needed.
• Conversational AI: This technology uses AI, natural language processing (NLP), machine learning (ML), and other advanced technologies to enable computers to understand, process, and respond to users in a more natural way. Conversational AI systems can recognize speech and text inputs, and can mimic human interactions.

Here are some other differences between AI chatbots and conversational AI:

• How they operate: AI chatbots can operate based on predefined conversation flows, while conversational AI uses more advanced algorithms and machine learning to respond to user inputs.
• How they learn: Conversational AI grows and learns through its own experience, while rule-based chatbots are more directed by developers and programmers.
• How they interact: AI chatbots interact with users specifically on chat, while conversational AI systems can expand their scope to text and voice assistants.