What is the Difference Between Chatbot and Conversational AI?

The basic difference between a chatbot and a conversational AI is the level of immersion. A conversational AI is an interactive messaging experience that can answer simple questions or perform transactional actions, such as booking a vacation, checking your call usage balance, or filing an insurance claim. It can perform these actions more quickly than a live human agent or call center representative.

Simple Set Up

It would be best if you did some things before you began developing your conversation intelligence software or chatbot. One thing that you should do is ensure that your chatbot is platform-independent. Moreover, you should also make sure that it can respond with images and links. This feature is especially in demand in retail settings. Finally, your conversational agent should be capable of automating tasks that a human agent typically performs. For instance, it should be able to update customer profiles, account balancing, and CRM updates.

For this purpose, you can use NLG technology. This technology allows computers to formulate words in human language, making the AI interactions “conversational.”While NLG is currently only being used in email marketing, it can also be applied in many other customer-facing communications.


The accessibility of chatbots and conversational AI should be a top priority when designing chatbots. Whether the chatbot will respond to a text-based question or use audio or video content, accessibility must be a top priority. For example, an accessible chatbot should allow users to hear and see the responses that should be transcribed for users with impaired hearing or vision. Also, the graphical and textual content should fit together intuitively.

The accessibility of chatbots and conversational artificial intelligence is important for consumers and businesses. The availability of conversational AI will enable businesses to increase the accessibility of their services and products. For example, a chatbot can help customers find information on a particular product. It can also provide recommendations and cross-sell products. In addition, chatbots can be used as virtual assistants. By lowering the entry barriers and increasing accessibility, companies can become more efficient.


The cost of chatbots and conversational AI is still uncharted territory for most enterprises. Many companies are hesitant to commit large budgets to a new technology that has yet to be developed enough to justify the costs. In addition, many organizations are wary of locking themselves into long-term subscriptions. However, new pricing models are emerging to address these concerns.

The cost of chatbots and conversational AI is related to their use and their extent. Though chatbots are cheap to deploy, the ROI will be lower if they are only used to replace a small number of agents and serve fewer customers. Calculating ROI requires many assumptions, and it is critical to make conservative assumptions to create a business case that supports continued investment.

Natural Language Processing

Conversational AI and chatbots are becoming a reality in many companies and organizations. These intelligent chatbots have many advantages, such as eliminating long wait times for call center agents and providing real-time information to end users. As consumers are accustomed to interacting with brands on their phones and tablets, conversational AI tools make it possible to engage with customers on their terms. By eliminating the need to wait on hold for support, companies can provide greater customer satisfaction, thereby increasing customer loyalty and revenue from referrals.

Using NLU in chatbots and conversational AI applications can help these artificial agents understand customer conversations and goals. Some companies already see dramatic improvements in customer support using NLU-powered AI agents.

Machine Learning

Machine learning in chatbots and conversational artificial intelligence (AI) can help businesses understand consumer intent and anticipate their needs. This technology is already being used by companies like e-commerce websites, social networks, and business-to-business companies. For example, conversational AI-powered chatbots can learn user preferences and recommend products or services based on the consumer’s interests.

Conversational AI solutions combine natural language understanding, machine learning, and other enterprise technologies to automate the interactions between customers and businesses. The goal is to provide a more personalized experience. Conversational AI chatbots are far more complex than simple chatbots and can enhance customer service, support, and brand experiences.

Chatbots are increasingly popular among consumers. Often placed in the front of a company’s website, these chatbots allow customers to interact with artificial agents. They can handle simple questions as well as more complicated issues. With increasing customer expectations, it is vital to provide excellent customer service. Conversational AI solutions can improve customer interaction and ultimately increase revenue for companies.