The Significant Role of AI in Chatbot Development


IIH Global

ai chatbot

A Gartner prediction says 85% of our interactions will be handled by bots by the end of 2020 diminishing the use of human power. Nearly 50% of businesses are planning to invest in chatbots rather than developing mobile apps. 

Chatbots aren’t new technologies. It has been here since the 1960s and the 1970s. An AI psychotherapist chatbot Eliza that mimicked human suffering with schizophrenia is one of the biggest examples of bot existence. 

A robot that chats; “hi there, we are here to help you with whatever you need.” This is the kind of typical friendly chatbot you’ll find popping out a traveling site or another site that you’re seeking for information.  

Today, a chatbot has emerged as the new tool changing the way businesses interact with users. Even so, the usage of a chatbot is transforming the e-commerce market easing the lives of marketers. 

Moving ahead, let us first talk about chatbots and see how it works.

In simple terms, a chatbot is a conversational AI. Well, conversation AI is the new orange. About 35% of the consumers will be seen in most of the companies with the help of chatbots.


Chatbots can be defined as a computer program that replaces the mundane tasks of humans in certain activities. For instance, there are automatic agents that can help customers settle down their problems, says Piotr Kempa, Bot Technology Expert, Founder @Primebot.

Hereby do not mistake the difference between a chatbot and a conversational AI. Conversational AIs are the communication automation technologies that have been based on advanced robotic solutions. However, this could be called an AI chatbot or assistants that can easily lead a normal and natural conversation with humans.

As Maciej Buś, Customer Experience Expert, CEO @My Customer World says, 

“although conversational AI has no ears, it can hear what you say; although it has no head (and brain), it understands; although it has no mouth, it can answer your questions. An AI bot is a computer program that can be enclosed in your phone, television, laptop, and even a toy. Some of them, when asked, can answer various questions like when your favorite cartoon is on the TV, when your mum will return from work, or how long it takes a spaceship to go to the Moon.”

How do chatbots work?

If you aren’t an AI professional, explaining how chatbots work could be a little challenging. 

Essentially chatbots work on complicated algorithms. These algorithms are set to find relevant meaning to the sentences that pop and are then classified with the intent to calculate with the reply that is relevant and suitable. 

The core significance of such software is to relieve the humans from repetitive tasks thus allowing chatbots to function independently. 

Let us have a look at the different technologies involved behind chatbots: - 

Technologies depend on the level and the purpose of the chatbots. 

  • First-generation NLU 

These are rule-based chatbots that work on simple NLU engines and those that can define n-gram gram systems. These bots can define word sequence as the texts get tagged within the semantic field by humans. They have no understanding of any sort of conversation. 

  • Basic bots 

Simple chatbots work on interactive surveys. The system however is programmed based on the phrases that can give the most possible reply in the form of buttons. 

  • Conversational AI 

With the help of deep learning technology, the meaning, and phrases of these words spoken along with their synonyms, the syntax could easily be calculated with the best possible answer within a 300-dimensional matrix to effectively respond. 

Significance of chatbot development for business

Several chatbots provide a remarkable conversational experience – as such it gets difficult to define whether the agent is a bot or a human. Thus, this acts as a lead generator for the organization. Don’t you think this saves a lot of time? Also, it serves as one of the best values in the B2B and B2C markets. 

In an e-commerce business, a chatbot can easily show product ratings as well as reviews on a product. 

A recent case study: -

Starbucks recently designed a chat for its business which resulted in customer satisfaction. The chatbot does the booking for the food order and helped in solving issues regarding customer satisfaction. Chatbots have been proven valuable in several business domains. Not only do they help in business engagement but they also help in communicating with the customer. 

Industries where AI engineers can launch their careers

2020 has been predicted to be a year where conversational AI will become a significant part of our lives. Be it reading, sharing or interacting online. These are several industries that will set the job market on fire. 

  • Voice recognition – Siri, Google Assistant, and Alexa are leaders in voice assistants
  • Natural language processing – scientists and AI engineers working on machine learning, NLP, and AI to have a huge career in developing chatbots and understanding how machines work 
  • Automated payment – 2 out of 3 US millennials said they are likely to purchase products through chatbots, says Chatbots Magazine
  • Advanced customer behavior – AI chatbots will fully depend on machine learning by the end of 2020

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