What is Chatbot? Check the meaning and how it Works with Examples

Most B2B companies solve the queries of their customers via a chatbot. Likewise, the different B2C companies use a chatbot to complete several tasks of their businesses.

Chatbots work by understanding the intent of the users with technologies like Artificial Intelligence and Machine Learning.

Chatbots are used in almost every kind of industry and business.

This article explains the meaning of chatbots, their history, how they work with stepwise procedures and good examples of chatbots.

History of chatbots

MIT professor Joseph Weizenbaum invented the chatbot in 1960. With its successful invention, the Chinese company further developed other kinds of chatbots with unique and rich features in 2009.

The first chatbot developed was named ELIZA, which used methods such as pattern matching and substitution to enhance human conversation. ELIZA could talk just like a human by converting the words into scripted language.

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In the year 2016, chatbots were developed by various social media platforms using artificial data technology for various businesses and companies. Some well-known chatbots have been developed since then, such as Jabberwacky, A.L.I.C.E., Mitsuku, and PARRY.

What is Chatbot?

A chatbot is a type of software or computer program that works with AI and ML techniques. It can work similarly to humans, such as by talking in a human tone and sharing important business details. They are available in various forms, such as simple models and machine learning models, depending on the type of industry, business, and tasks to complete.

In addition, the chatbots make human conversation simple in the form of text or voice messages.

Chatbots are contextual, menu-driven, scripted, hybridized keyword-based chatbots available for carrying out simple tasks as well as complex conversations that can be plugged into different channels, including chat apps, websites, and mobile apps. For instance, it can be used to provide customer service, answer frequently asked questions, or even suggest things that may interest users.

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Kinds of Chatbots

A chatbot is of various types, such as:

• Menu-driven bots: These chatbots work on a predefined list or a menu to fulfil the needs of the customers. They choose these methods to convert a message into human text or voice message.

• Scripted chatbots: In the case of a scripted chatbot, the bot communicates with users through predefined questions. It is used in many businesses and startups.

• Hybrid chatbots: The term hybrid means a combination of two or more elements. A hybrid chatbot works with the combination of a keyword bot and a menu-based bot. In these chatbots, users can choose to get answers directly or use the chatbot menu without keywords.

• Chatbots working with voice: Voice-enabled chatbots use the spoken words of users to give responses and answers. They use different technologies, such as voice recognition and text-to-speech, to give responses. The best examples of voice-enabled chatbots are Siri and Alexa. These chatbots are used in many businesses and homes.

• Contextual chatbot: A contextual chatbot uses Artificial Intelligence and Machine Learning methods to understand human conversations. They use memories to give responses and answers to the users.

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How do chatbots work?

Chatbots use natural language processing methods to convert input into human text. Some other natural language processing technologies are widely used to convert the input into human language. They look at the internet and give responses according to their queries and demands.

Most chatbots grasp the meaning of human intention correctly, and they answer correspondingly using phrases, words, and messages. Let’s look at how the chatbot works step by step:

• The first stage in the process is typing a message or speaking it to the bot with the user interface.
• The bot will then understand the intent of the customers by using a natural language process.
• The chatbot will further search the database to get a relevant answer to users’ queries.
• The response is sent to the users with the help of a user interface.
• Finally, the user will respond and the process is repeated till the end of the conversion.

Some advanced chatbots use machine learning and large language models to understand the intent of users and convert the message to meet the needs of various users.

Source: Intercom

How do Chatbots make Business Communication Better Each Day?

Businesses are using modern ways to communicate with customers. Around 56% of different types of businesses adopt chatbots for daily conversation. Chatbots are used to meet the changing needs and demands of customers in businesses. They improve communication in various ways, such as:

• It decreases the overall customer wait times in getting a response.
• You can interact 24/7 with chatbots.
• They can be easily customized by adding several elements to improve the online presence of the brand.
• They reduce the stress of users by making conversations easier and better.
• You can get personalized solutions for better communication with a chatbot.
• It is one of the most affordable solutions for communicating with users and solving their daily queries.
• Chatbots reduce the overall time of communication and interaction with users.
• They automate the tasks and give faster responses to the users

Conclusion

Chatbots will soon replace humans in many businesses and companies. They will evolve and come in different forms to make communication more accessible for users. Although the use of chatbots is prevalent in well-known companies, it has yet to arrive in small companies and businesses.

The developers are making an effort to improve the workings of chatbots with new technologies and tools. If you want to integrate a chatbot for your startup or new business, hire a developer. Many digital marketing companies help to develop chatbots with several features for different kinds of businesses and startups.

Also, read What is Generative AI