What are chatbots and how to use them in business

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What are chatbots and how to use them in business
20 Feb 2022
6 min read

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A chatbot is a computer program that uses voice instructions, text dialogues, or both to simulate human conversation. Businesses are increasingly migrating from traditional to digital platforms to transact with customers as technology advances. Businesses use artificial intelligence (AI) approaches on their digital platforms to provide convenience through technology. Chatbots are one AI approach that is becoming more widely used #TWN

A chatbot is a computer program that uses voice instructions, text dialogues, or both to simulate human conversation. Chatbot, or chatterbot, is an artificial intelligence (AI) tool that can be embedded and used in any major messaging service. "Talkbot," "bot," "IM bot," "interactive agent," and "artificial conversation entity" are some of the synonyms for the chatbot.
Businesses are increasingly migrating from traditional to digital platforms to transact with customers as technology advances. Businesses use artificial intelligence (AI) approaches on their digital platforms to provide convenience through technology. Chatbots are one AI approach that is becoming more widely used. Virtual assistants like Alexa from Amazon and Google Assistant from Google, as well as messaging apps like WeChat and Facebook Messenger, are examples of chatbot technology. A chatbot is an automated program that communicates with clients in the same way that a human would, and it is free to use. Customers can reach out to chatbots at any time of day or week, and they are not restricted by time or geography. It makes it desirable to many organizations that may lack the manpower or financial means to maintain employees working 24 hours a day, seven days a week.

Set guidelines and machine learning are two ways that a chatbot functions.

Set guidelines chatbot

The conversational capabilities of a chatbot that operates under a set of rules are restricted. It can only react to a limited number of requests and has a limited vocabulary, and its intelligence is limited by its programming code. An automated banking bot that asks the caller several questions to figure out what the caller wants to do is an example of a limited bot.

"Please tell me what I can do for you by saying account balances, account transfer, or bill payment," the bot would say. If the customer replies "credit card balance," the bot will either repeat the instruction or transfer the caller to a human operator. Chatbots have grown with new AI developments over time and are significantly more receptive to human contact than chatbots that follow pre-programmed instructions.

Machine Learning chatbot

An artificial neural network inspired by the neural nodes of the human brain powers a chatbot that uses machine learning. As fresh phrases and words are introduced to the bot, it is programmed to self-learn. As a chatbot receives fresh voice or written dialogues, the number of inquiries it can respond to grows, as does the accuracy of each response. Chatbots are utilized in a range of industries and for a variety of reasons. There are retail bots that pick and order groceries, weather bots that provide daily or weekly weather forecasts, and nice bots that simply converse to folks who need a buddy.

Conclusion

Chatbots are also used in the fintech industry to help consumers with their financial service inquiries and applications. Thinking Capital, a small company loan in Montreal, began using a virtual assistant in 2016 to give customers 24/7 support via Facebook Messenger. To be declared suitable for up to $300,000 in finance, a small business wanting to acquire a loan from the corporation merely needs to answer essential qualification questions asked by the bot. 

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