Chatbot vs conversational AI: What’s the difference?

Chatbot vs Conversational AI: A Comparative Analysis

conversational ai vs chatbot

The recent advancement in technology is pushing the frontier of what automation can do. From forms that auto-populate with information when you use a web browser to calendars that automatically sync with email clients, automation has a broader spectrum. Security organizations use Krista to reduce complexity for security analysts and automate run books.

With a lighter workload, human agents can spend more time with each customer, provide more personalized responses, and loop back into the better customer experience. AI technology is advancing rapidly, and it’s now possible to create conversational virtual agents that can understand and reply to a wide range of queries. In spite of recent advances in conversational AI, many companies still rely on chatbots because of their lower development costs. Generative AI products require much more computational power as they rely on large machine learning models. Newer examples of conversational AI include ChatGPT and Google Bard that can engage in much more complex and nuanced conversation than older chatbots. These rely on generative AI, a relatively new technology that learns from large amounts of data and produces brand new content entirely on its own.

Examples of Conversational AI Chatbots:

When it comes to customer service teams, businesses are always looking for ways to provide the best possible experience for their customers. In recent years, conversational AI has become a popular option for many businesses. Basic chatbots rely on pre-determined decision trees that require exact keyword matching to return the right output for the given customer input.

conversational ai vs chatbot

My expertise includes AI/ML, Crypto and NFT markets, Blockchain development, AR/VR, Web3, Metaverses, Online Education startups, CRM, and ERP system development, among others. They contribute to key metrics like improved customer satisfaction, increased first contact resolution, and higher brand affinity. The domain flexibility and evolving intelligence of conversational AI unlocks immense possibilities for enhancing digital experiences.


For example, if you ask a chatbot for the weather, it will understand your input and give you a response that includes the current temperature and forecast. Exemplifying the power of Conversational AI in the telecom industry is the Telecom Virtual Assistant developed by Master of Code Global for America’s Un-carrier. With an extensive repertoire of over 70+ intents, the Virtual Assistant swiftly addresses customer inquiries with precision and efficiency, driving a notable enhancement in overall customer satisfaction.

  • When you switch platforms, it can be frustrating because you have to start the whole inquiry process again, causing inefficiencies and delays.
  • Chatbots are computer programs that can talk to you, introduce themselves, ask you questions, receive your answers, and provide you with a solution.
  • This might irritate the customer, as they didn’t get the info they were looking for, the first time.
  • They showcase the power of natural language processing, contextual understanding, and personalized interactions that conversational AI enables.

NLU is a scripting process that helps software understand user interactions’ intent and context, rather than relying solely on a predetermined list of keywords to respond to automatically. In this context, however, we’re using this term to refer specifically to advanced communication software that learns over time to improve interactions and decide when to forward things to a human responder. Newer chatbots may try to look for certain important keywords rather than reading entire sentences to understand the user’s intent, but even then, may not always be able to respond accurately. If you’ve ever had a chatbot respond along the lines of “Sorry, I didn’t understand” or “Please try again”, it’s because your message didn’t contain any words or phrases it could recognize. The more your conversational AI chatbot has been designed to respond to the unique inquiries of your customers, the less your team members will have to do to manage the inquiry. Instead of spending countless hours dealing with returns or product questions, you can use this highly valuable resource to build new relationships or expand point of sale (POS) purchases.

They have a lot more to say about the power of AI for conversations and operations. With CX playing such a large part in what companies offer, the time to strategize and improve yours is now. ” then you’ll get an exact answer depending on how the decision tree has been built out. But what if you say something like, “My package is missing” or “Item not delivered”? You may run into the problem of the chatbot not knowing you’re asking about package tracking. This article explores the monumental impact of generative AI on businesses – how this trailblazing technology can optimize operations, reduce costs, boost decision-making and add $trillions in value.

Microsoft Bing vs Google Bard: who’s winning the AI chatbot fight? – TechRadar

Microsoft Bing vs Google Bard: who’s winning the AI chatbot fight?.

Posted: Wed, 10 May 2023 07:00:00 GMT [source]

Chatbots primarily use natural language text interfaces that are constructed via pre-determined guidelines. This setup requires specific request input and leaves little wiggle room for the bot to do anything different than what it’s programmed to do. This means unless the programmer updates or makes changes to the foundational codes, every interaction with a chatbot will, to some extent, feel the same.

Chatbots vs conversational AI: 3 main differences

If you’re already using a conversational AI chatbot on your website and messaging apps, you should be able to deploy the same automation on your voice channel without having to start over. (Assuming you chose a multimodal platform like Ada.) Check out our tips for getting started. Many established companies are still relying on the legacy systems that have always supported them, which often means localized call centers. But in today’s digital-first world, this probably isn’t serving your business goals — or your customers. For businesses operating in multiple countries or looking to expand to new markets, conversational AI’s multilingual capabilities can help.

To learn more about the history and future of conversational AI in the enterprise, I highly recommend checking out the Microsoft-hosted webinar on how ChatGPT is transforming enterprise support. It’s a great way to stay informed and stay ahead of the curve on this exciting new technology. Follow the link and take your first step toward becoming a conversational AI expert. For instance, while you could ask a chatbot like ChatGPT to add you to a sales distribution list, it doesn’t have the knowledge or ability to understand and act on your request.

Use cases for chatbot vs. conversational AI in customer service?

Chatbots are the predecessors to modern Conversational AI and typically follow tightly scripted, keyword-based conversations. This means that they’re not useful for conversations that require them to intelligently understand what customers are saying. In the chatbot vs. Conversational AI deliberation, Conversational AI is almost always the better choice for your business.

  • They ensure a consistent and unified experience by seamlessly integrating and managing queries across various social media platforms.
  • Chatbots are computer programs that imitate human exchanges to provide better experiences for clients.
  • Things you say to Cleverbot today may influence what it says to others in the future.
  • After you’ve prepared the conversation flows, it’s time to train your chatbot to understand human language and different user inquiries.

However, with the emergence of GPT-4 and other large multimodal models, this limitation has been addressed, allowing for more natural and seamless interactions with machines. A chatbot is a tool that can simulate human conversation and interact with users through text or voice-based interfaces. Conversational AI is capable of handling complex conversations and offering personalized solutions by analyzing users’ preferences and behavior over time. Finally, conversational AI can be used to improve conversation flow and reduce user frustration which leads to better customer experiences. Third, conversational AI can understand complex requests and provide more accurate responses which help to improve customer satisfaction. Then, there are countless conversational AI applications you construct to improve the customer experience for each customer journey.


As mobile and conversational commerce thrive, the Luxury Escapes Travel Chatbot stands as a testament to the power of Conversational AI in driving user engagement and expanding brand authority on a global scale. Another fantastic example of Conversational AI in action is the Payment Refund Chatbot developed for a popular fast-casual Mexican dining chain in North America. By extending the existing Conversational AI solution, the Chatbot intelligently gathers information about the purchase method, issue details, and initial payment, making precise refund decisions. The results have been outstanding, with agent escalation dropping between 42% and 66%, leading to $10.2 million in refund cost savings.

conversational ai vs chatbot

As the official fuel sponsor of the NHL, Esso aimed to engage hockey fans and promote their brand uniquely. Collaborating with BBDO Canada, Master of Code Global created the bilingual Messenger Chatbot, introducing the innovative ‘Pass the Puck’ game. The objective was to entice as many Canadians as possible to participate, passing the puck from coast to coast.

What Is Conversational AI? Definition and Examples – CMSWire

What Is Conversational AI? Definition and Examples.

Posted: Thu, 05 Jan 2023 08:00:00 GMT [source]

AI for conversations, or conversational AI, typically consists of customer- or employee-facing chatbots that attempt a human conversation with a machine. Conversational AI finds its place in healthcare, where it assists in appointment scheduling, symptom assessment and providing medical information. The advanced capabilities of conversational AI allow for an in-depth understanding of patient needs, contributing to improved patient engagement and healthcare delivery.

conversational ai vs chatbot

However, with the advent of cutting-edge conversational AI solutions like, these hurdles are now a thing of the past. Conversational AI brings a host of business-driven benefits that prioritize customer satisfaction, optimize operations, and drive growth. With its ability to generate and convert leads effectively, businesses can expand their customer base and boost revenue. Also, with exceptional intent accuracy, surpassing industry standards effortlessly, DynamicNLPTM is adaptable across various industries, ensuring seamless integration regardless of your business domain.

conversational ai vs chatbot

Empathy and inclusion will be depicted in your various conversations with these tools. There are benefits and disadvantages to both chatbots and conversational AI tools. They have to follow guidelines through a logical workflow to conversational ai vs chatbot arrive at a response. This is like an automated phone menu you may come across when trying to pay your monthly electricity bills. It works, but it can be frustrating if you have a different inquiry outside the options available.