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We often use the words “chatbots” and “conversational AI” interchangeably believing that both these technologies are synonymous. However, there are some key differences between chatbot vs conversational AI.
Despite the differences, both serve entirely the same purposes across sales, support, and marketing. They have the potential to transform the way customer service is delivered, which can ultimately have a big impact on the bottom line of a business.
However, as a business leader, you should know the differences between conversational AI vs chatbots. Only then can you optimize processes and improve customer experiences (CX).
In this blog, we will discuss in detail all the differences between a chatbot and a conversational AI technology and also show examples from across industries to ensure absolute clarity on the subject.
Chatbots are computer programs developed to stimulate human conversations. They are a kind of machine that can chat. And this chatting ability is the reason a chatbot can be used across marketing, sales, and support for creating better experiences for customers anytime.
While some chatbots work based on a predefined conversation flow, others use technologies like artificial intelligence (AI) and natural language processing (NLP) to converse with users. Chatbots are often so advanced that they can easily decipher user questions and offer automated responses in real time. They can handle full conversations around 69% of the time.
More so, chatbots can either be rule-based or AI-based and the latter are more advanced as they do not require pre-scripted rules or questions for sending responses. More so, AI-based chatbots are programmed to deviate from the script and handle queries of any complexity.
Conversational AI refers to artificial intelligence-driven communication technology ( such as chatbots and virtual assistants ) that uses machine learning (ML), NLP, and data for conversation. It is advanced enough to recognize vocal and text inputs and mimic human interactions to assist conversational flow.
Similarly, conversational AI is a technology that can be used to make chatbots more powerful and smarter. It’s a technology that can recognize and respond to text and speech inputs easily, therefore enabling interactions with customers in a human-like manner. Maybe that’s why 23% of customer service companies use AI chatbots for better responses.
When conversational AI technology is used, interactions can happen through a chatbot in a messaging channel or through a voice assistant over the phone. Unlike chatbots, it can determine user intent and also easily understand human language.
From the above, it’s amply clear that conversational AI is a more powerful technology compared to chatbots. In fact, we have learned how a chatbot needs conversational AI technology to act smarter and become more intelligent. However, we should note that not all chatbots use conversational AI technology so not all will be powerful.
Chatbot |
Conversational AI |
Lacks capability beyond performing basic functions |
Can perform complex tasks across sales, support, and marketing |
Can best answer simple FAQs |
Can make chatbots smarter |
Unable to interpret human language |
Able to interpret human language |
Supports tex-only command |
Supports both voice and text commands |
Fit for single-channel communication |
Ideal for omnichannel communication |
Enables scripted conversational flows |
Has natural language processing ability |
Supports linear interactions |
Supports dynamic interactions |
There are more differences between a chatbot and conversational AI and some of them include –
As a business, whether you should go with a chatbot or conversational AI technology entirely depends on your goals and requirements. But there is no denying that conversational AI is far better technology than a traditional chatbot. Despite that, there are certain processes and tasks where a bot would seem more suitable and vice versa.
Chatbot – Business Suitability |
Conversational AI – Business Suitability |
Fit for answering simple FAQs on the website |
Can automate support across multiple channels and platforms |
Query resolution with some human intervention |
Query resolution without any human intervention |
Can’t answer questions beyond the script |
Can offer unscripted responses |
Not contextually aware |
Contextually aware |
Can’t comprehend multiple intents from a query |
Can comprehend multiple intents from a query |
Ideal for one-language support |
Can support multiple languages |
Suitable for basic customer support tasks |
Ideal for complex tasks across sales, support, and marketing |
Parameters are many to choose from when you want to decide whether to take the help of a chatbot or conversational AI.
Chatbots and conversational AI both are helpful for various tasks in customer service. While chatbots are ideal for handling routine tasks, conversational AI is better suited to deal with more complex issues.
Let’s look at some of the use cases for chatbots vs conversational AI in customer service –
There has been an ongoing debate about conversational AI vs chatbots. However, experts are unanimous in their opinions because conversational AI is a more advanced and sophisticated technology than chatbots.
Let’s look at some of the key benefits of conversational AI over traditional chatbots –
Chatbots have become a key tool across industries for customer engagement, customer satisfaction, and conversions. They can serve a variety of purposes across processes, therefore extending their usages as wide as the airline industry, financial services, banking, pharma, etc.
Some of the top examples of chatbot use across industries include –
KLM Airlines is a good example of how to use a chatbot to simplify travel plans for users and also streamline procedures for businesses. The chatbot named BB will be accessible 24×7, can support multiple languages, and provide faster responses. Using the chatbot, the airline is able to handle hundreds of travel queries efficiently, offer all the booking information with a click, and make customer support as effortless as it could get.
Some of the top luxury brands in the world use chatbots to scale shopping services and provide great experiences to buyers. H&M is a good example, which is also a global fashion brand, in how to use a chatbot to successfully engage millennials and Gen Z customers and guide them through myriad outfit possibilities. The use of a chatbot has helped the brand increase sales and market its products more effectively.
Thanks to chatbots, customers can now order food without making a phone call. All they need to do is click a few buttons and choose what they want. Domino’s messenger bot is a good example of how to make the best of chatbot technology and ensure amazing service to customers. Since this chatbot lives in Facebook Messenger, customers will have the flexibility to order from different devices. More so, the chatbot can also track previous purchases and make the entire food ordering procedure as smooth as it can get.
When it comes to the chatbot in banking, there can’t be a better example than EVA by HDFC. It’s an AI-powered bot in the true sense that uses Natural Language Processing (NLP) and makes support as fast and effortless as it can get.
EVA can converse with users, answer queries quickly and offer accurate responses most of the time. Ever since this bank has started using EVA, its customer support has improved manifold and more queries handled than ever before.
Chatbots and conversational AI are two of the most innovative technologies of modern times. Both continue to evolve with immense potential in the coming years. Even today, both technologies impact various aspects of our lives.
Let’s look at the future of chatbots vs conversational AI –
Rule-based chatbots have some limitations and they are surely not the best option when a business thinks of catering to modern customers and needs.
We, at REVE Chat, are aware of the shortcomings that scripted chatbots can have and therefore help businesses easily design the best chatbot they can.
Using our platform, it’s quite simple to design an AI-powered chatbot in quick time, and that too, without writing a line of code.
The bot can be customized to meet the specific needs of the business whether in support, sales, or conversion.
More so, bots are not the only engagement tools that are available on this platform you can also get other ones as well, including co-browsing software and video software.
What’s more, you can combine the live chat software with the chatbot and ensure hybrid support to users across the journey with your brand.
A business can definitely excel to new heights when it has the best tools at its disposal for executing tasks across various departments.
Having a conversational AI chatbot thus becomes important when the main focus of a business is on customer engagement and experience.
With REVE Chat, you can start a free trial of a chatbot and other support tools and see how they would fit into the specific needs of your business.
So, take the right step ahead and get a chatbot that can serve all your business needs as perfectly as it can be.
Chatbots rely on scripted or pre-defined responses and have limited functionalities. So, they are ideal for basic interactions only. On the other hand, conversational AI integrates advanced natural language understanding and can engage in sophisticated conversations.
Virtual assistants like Siri, Alexa, and Google Assistant are top examples of conversational AI applications.
Yes, both impact user experience differently. While chatbots focus on handling basic queries and automating routine tasks, conversational AI can engage in human-like interactions and offer natural responses.
Chatbots rely on pre-scripted responses and therefore are suited for simpler queries only. In contrast, conversational AI can understand context and language, and offer personalized solutions.
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