A chatbot is a computer program that is to simulate conversation with human users over the internet. Chatbots act as Automated Virtual Assistants,  capable of communicating with other people with the help of text messages or instant messaging programs. Chatbots in business is one of the smartest ways to automate some operations.

Chatbots are gradually transforming the way a business connects with its customers. Artificial Intelligence and Machine Learning have played a role in revolutionizing the global ecosystem of SMEs and large business enterprises.

Chatbots are gradually transforming the way a business connects with its customers. Artificial Intelligence and Machine Learning have played a role in revolutionizing the global ecosystem of SMEs and large business enterprises.

Chatbots generally use Natural Language Processing (NLP) and Advanced Machine Learning (AML) to learn from data insights. 


There are various types of chatbots with different advantages and usage:

  • Web-BasedWeb-based chatbots are used by businesses in their web-based integration. 
  • Stand AloneThese are not so commonly used chatbots as web-based chatbots. Stand-alone chatbots can be developed and utilized without integrating them into another software application. 
  • App-basedThere are many businesses whose chatbots run on messaging apps. These are in use for B2C customer service, sales, and marketing. In the year 2016, the Facebook messenger had allowed developers to use chatbots on their platform. The bots would generally be appearing as your contacts but it can also act as a participant in a group chat.  

For correct utilization and efficient levigation of the chatbots, they need to be growing enough with a business. These generally require three factors: 

  • Artificial IntelligenceA chatbot generally is an artificial intelligence software that helps in stimulating a conversation(or a chat) with that of a user in natural language through message applications, websites, mobile apps, etc. Machine languages are usually one of the subsets of AI. It helps by allowing the computer to operate in a manner without being explicitly programmed to do so. 
  • Conversational UIThere is a belief in the mind of most researchers that conversational UI would become the priority for developers. Conversational UI provides the benefit of interacting with the computer in a human language. It is said to be a paradigm shift from the earlier types of communications achieved by entering syntax-specific commands or by clicking icons.
  • Natural Language Processing (NLP)- “Natural Language Processing” helps to use the voice-based human language and commands, which can be processed by the computer. It helps by providing pertinent replies to the user for their initial queries.


In a customer-centric world, anything that is available for increasing the customer experience and helps in value creation for the business is beneficial. Chatbots have proved themselves to be incredibly helpful by assisting the business in fostering customer relationships. 

Following are some of the benefits of using chatbots by a business:

  • Increase In Customer Engagement Chatbots helps the business in taking customer engagement to a next higher level. These help by making the interaction or the conversation more customer-centric as they drive the interactions based on the user’s input. The use of chatbots can help eliminate irrelevant and unnecessary information that helps the customer stay longer on the website and carry on with the conversation. 
  • Improve Lead Generation Businesses can use a chatbot for lead generation also to engage customers into personalized messaging throughout his/her journey. This is also helpful in guiding the customers and also helping him/them to make quick decisions. Bots help in the qualification of the leads by asking them various relevant questions and directing them to the sales team for immediate sales conversion. 
  • Reduction in Customer Service CostsInvestment in chatbots can help in the optimization of the customer service costs for a business. Chatbots can help a business by saving extra costs that the businesses have to incur by employing more agents for providing customer service. 
  • Monitoring Customer Data for Getting InsightsChatbots help by understanding the customer buying behavior with the monitoring of the user’s data. Based on these collected data, the businesses can develop their marketing strategies and advertising strategies for better lead conversion. 

Chatbots can help companies collect customer information such as name, gender, age, contact number, and email address This can prove helpful for the companies for sending push notifications to the customers in the future. 

  • Balancing Automation with Human TouchA combination of AI technology with a human touch can help companies or businesses by delivering seamless customer support. Businesses that are using AI-enabled chatbots as their primary channel help them to deliver real-time support. The bot helps by promptly answering customers’ queries and thus helps in increasing the customer satisfaction level. 

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