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Chatbot – what is a chatbot, its use case and benefits

What is a chatbot?

A chatbot is an AI simulated advanced conversational AI that can initiate the conversation with the user through chat in the natural language. These are the digital assistants that are capable of understanding the user’s intentions, interpreting them, processing and giving the prompt replies based on the query. These chatbots can be deployed on various points of user interaction such as webpages, social media pages, applications etc. They help produce personalized content to the customer thereby helping in the process of digital customer engagement.

What are AI chatbots used for?

Chatbots have numerous applications depending upon their stream of deployment and the purpose of use. Few of the crucial adaptations of Artificial Intelligence chatbots are-

Where can chatbots be deployed?

Chatbots are used for various purposes like customer engagement, selling of products, feedback collections, personalized recommendations and a lot more purposes. To achieve these, they can be deployed on various digital points of customer interactions like company landing pages, kiosks, webpages, social media pages like facebook, twitter, email as well as automated sms services etc

How does a chatbot work?

The functioning of a chatbot can be narrowed down to three basic technologies involved in them. They are-

  1. Entity- It symbolizes an idea to your chatbot. For example, the loan system in your banking solution.
  2. Context- After NLU understands the sentence, it verifies the query with the stored data bases through selected phrases. This helps the bot identify the context of the query thereby helping the machine decide the suitable response.
  3. Expectations- It refers to the component of chatbot comprehending with the expectations of the customer regarding their query.
  1. Tokenization- The bots segment the sentences into groups called tokens.
  2. Sentiment Analysis- It aligns the users emotions based on the inputs provided.
  3. Normalization- It analyses the presence of any typos in the input which might affect the overall interpretation of the input and thereby the message.
  4. Entity Recognition- It starches for the categories of the information required.
  5. Dependency Parsing- It searches the input for the common phrases through which the users usually want to convey the message or their intent.
What are the benefits of an AI chatbot?

An AI chatbot can prove a fortune to the companies if deployed for the right measures through the right means. Few of the ensured benefits of chatbots include-

What are the advantages of a chatbot over service reps?

Chatbot has numerous advantages when added on to any of the points of customer interaction. A few of them can be summarized as follows-

How does an AI chatbot personalize the recommendations to the customers?

AI Chatbots employ machine learning to incorporate product recommendation engines into their functioning. Artificial Intelligence chatbot has the capability to segment and analyze the behavioural patterns of the visitors and users through a process called collaborative filtering. This is the process through which the machine compares the users inputs with inputs form similar users whose tastes and choices align with the current users. It ranks the items they like and begins recommending the same to the users. Advanced recommendations also include other layers like product tags, keywords etc to enable the algorithm to discover another set of relevant data.

What is Dave AI?

Dave AI is an artificial intelligence sales augmentation platform. It enables brands to create virtual sales agents in the form of avatars or chatbots to understand the customer preferences and deliver valuable suggestions to enhance the selling experience. The Chatbot created using this platform can capture actionable data to deliver a hyper-personalized value selling experience, unique to every customer that Dave interacts with and creates a compelling product discovery experience. High-powered personalization coupled with automated product ranking and recommendation systems allows the bot not only to interact with the customer but also to guide them through the product catalogues.
Want to explore how DaveAI can further assist you in your journey towards the digital era?


Q1. Do Chatbots increase sales?

A. Yes, chatbots increase sales. With prompt solutions to queries, Chatbots bridge the gap between communication and service and enhance the quality of customer support in return. Customer engagement is accurate and personalized. Chatbots boost sales by 67%.

Q2. How much do AI chatbots cost?

A. The cost of an AI chatbot depends on the company, business requirements, and the technical aspects that lay the foundation for the working of this chatbot.

Q3. How many days will it take to create a chatbot?

A. The time required to create a chatbot entirely depends on the availability of resources and the modules for the chatbot to be developed. It can take a chatbot maximum of 2 to 3 weeks to be developed.

Q4. How do chatbots learn?

A. Chatbots learn in two ways.
By analyzing previous data and making predictions from experiences or by humans modifying the system.

Q5. How can I make my chatbot smarter?

A. A chatbot can be made smarter with the help of machine learning and user modelling.

Q6. What is a smart chatbot?

A. A smart chatbot is an AI chatbot that can initiate free-flowing conversations like humans and understand the intent and language of the user.

Q7. What is the main use of chatbot?

A. Chatbots are used as efficient business strategies that enhance the process of providing customer service and operational efficiency that decreases the cost of customer engagement.

Q8. How do you make a chatbot interesting?

A. Giving the chatbot a catchy name, a unique brand avatar and features like personalization can make it interesting.

Q9. Is WhatsApp bot safe?

A. The feature of encryption makes WhatsApp bots very safe and secure.

Q10. Are Chatbots successful?

A. Chatbot is a successful and cost-effective strategy. Chatbots are prompt in answering questions and completing tasks for which they have been trained for. It has been proven that chatbots provide 80% efficiency in handling conversations.

Q11. How do I deploy a Chatbot on my website?

A. The steps involved in deploying a chatbot on a website are:
1. Visit the Integration panel and choose the chat widget.
2. Go to ‘publish your bot’ section.
3. Copy and paste the code to the source code of the website preliminary to the tag.

Q12. What can AI chatbot do?

A. AI chatbots can converse with people on a level that feels empathetic. AI chatbots provide accurate guidance by initiating solutions to fulfill the needs of the customers.

Q13. What are chatbot triggers?

A. Chatbots triggers are keywords or the actions of a subscriber. Triggers aid in seamless customer engagement. They are of two types:
1. Keyword: An activity gets launched once a message is received from the subscriber that contains a keyword.
2. Subscription: An activity gets launched after completion of a pre decided period in reference to the subscription added to the chatbot by the customer.
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