Conversational AI chatbots

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Jun 20, 202413 MINS READ

How do conversational AI chatbots work?

Conversational AI chatbots rely on advanced technologies like Machine Learning (ML), Natural Language Processing (NLP), and intelligent analysis to grasp the nuances of customer inquiries and respond with relevant solutions in a conversational tone. Let's explore how each component collaborates to enhance the customer experience.

Natural Language Processing (NLP) helps chatbots comprehend various forms of customer input by interpreting our everyday language, whether text or voice. This encompasses understanding abbreviations, mispronunciations, typos, and diverse sentence structures.

Machine Learning (ML) is the backbone of these chatbots, enabling them to continuously refine their responses based on past interactions. By assimilating insights from previous exchanges, they evolve to deliver increasingly refined and personalized conversational experiences to customers.

Intelligent Analysis harnesses the power of AI to sift through vast amounts of data, enabling chatbots to glean valuable insights and provide customers with tailored recommendations, solutions, and suggestions. This capability ensures that each interaction is efficient, meaningful, and relevant to the customer's needs.

10 best conversational AI chatbots in 2024

1. Freshchat

Freshchat, a Freshworks product, is an all-in-one customer support solution that helps businesses engage with customers and interact more effectively and efficiently. With its AI-powered chatbots, it enables personalized self-service experiences so businesses can optimize operational efficiency and deliver exceptional customer support. By providing a comprehensive view of customer conversations and integrating with various tools, CSS equips businesses with the tools they need to stay ahead of customer needs and deliver unparalleled service experiences.

Key features

  • 24/7 support

  • Pre-configured playbooks

  • Able to access conversation history and important information  

  • Live chat for real-time interactions

  • Integration with help desk software, marketing, and sales automation software

Advantages

  • High response rate and CSAT

  • Easy implementation and integration of chatbots on messaging channels

  • Conversations are easily transferred to live agents when necessary

  • Able to connect pre-existing chatbots to messenger and Team Inbox with conversation APIs

Why customers rave about Freshchat? 

Freshchat offers multichannel use across the web, email, phone, and social media like Instagram, WhatsApp, and iMessage, meaning users can access this tool from the platform of their choosing and receive support on-the-go. Its chatbots are easy to implement with a no-code builder. These intelligent bots help businesses deliver personalized self-service solutions to enhance the customer experience. 

2. SmythOS

SmythOS uses AI agents that integrate seamlessly into your workflow to accomplish tasks autonomously. These agents can easily adapt to and scale to your businesses and learn your data for 24/7 support. 

Key features

  • Visual workflows

  • Lead contacts scraper

  • Shopify blog manager

  • Content writer for SEO 

  • Content keyphrase analyzer 

Pros

  • No code platform for integrating APIs and AI

  • Easy drag-and-drop platform 

  • Able to identify emotions and feelings with capable agent analysis

Cons

  • Learning curve with documentation

  • Could have more long-form video tutorials for building applications

  • Pricing may be too expensive for small business owners 

Price

Pricing starts at $30 per month.

3. Jasper

Jasper is a key AI tool for producing content faster and more efficiently, from blog articles to social media. It ensures seamless communication and uses a wide range of internet knowledge to create tailored content, conversations, and messaging. 

Key features

  • Robust knowledge base derived from billions of pieces of online content

  • Able to remember conversations

  • Autosave feature 

  • Comprehensive prompts 

  • Customer support and training 

Pros

  • Proficient in over 30 languages

  • Able to integrate simply with a browser extension

  • Enterprise-level security certifications

Cons

  • Customer support is lacking and relies too heavily on automation 

  • Translations often have to be proofread for errors

  • Organization of content is lacking and may require additional expenses

Price

Pricing starts at $49 per month per seat. 

4. Tidio

With an easily accessible live chat widget ensuring round-the-clock availability and AI-powered chatbots engaging customers in real-time, Tidio empowers you to drive more sales effortlessly. Lyro, Tidio's pioneering conversational AI chatbot delivers personalized support enabling you to maximize support capacity without incurring additional hiring costs. 

Key features

  • Can access multiple channels like Messenger, emails, live chats, and more all from one tool

  • Canned responses for faster replies 

  • Video calls 

  • Viewed pages to see what users are browsing 

  • Live visitor list 

Pros

  • Available on browser, desktop, and mobile 

  • Pre-chat surveys 

  • Customer database

Cons

  • Limited integration options

  • Initial setup can be complex

  • Zappier may be required for connection with other apps 

Price

A free plan is offered with pricing increasing depending on desired features. 

5. Kommunicate

Kommunicate is a customer support platform that uses AI to streamline and enhance customer interactions. Kommunicate helps businesses to efficiently manage customer conversations, integrate chatbots, and facilitate seamless communication across multiple channels. 

Key features

  • Enterprise-grade security and data protection 

  • Live chat widget 

  • Integrations with Whatsapp, Viber, Messenger, and more

  • Support in over 100 languages

  • Omnichannel 

Pros

  • No-code chatbot builder

  • Integrations with existing bots like Amazon Lex, Open AI, and IBM Watson

  • Integration with knowledge bases from Helpscout, Salesforce, and more

Cons

  • Some integrations and processes may be time-consuming 

  • Support queries can occasionally be resolved more quickly

  • Limited availability of UI customization options

Price

Pricing starts at $100 per month. 

6. Intercom

Rooted in a unified AI system, Intercom boasts three core components: the AI Agent, AI Copilot, and the AI Analyst, equipping you with the tools needed to deliver unparalleled customer service. With Intercom, you can seamlessly engage with customers across multiple touchpoints, ensuring a remarkable customer journey. 

Key features

  • Built-in safeguards 

  • Custom answers available 

  • Visual automation builder 

  • Customizable workflows

  • Pre-built templates for support, onboarding, and more

Pros

  • No configuration or training required

  • No code needed and automated workflows for routing and closing conversations

  • Customer data and order history available to add to conversations 

Cons

  • Pay per email sent pricing is expensive 

  • Creating workflows and organizing companies can present a learning curve

  • Help articles can be difficult to follow according to some users

Price

Pricing starts at $39 per seat per month. 

7. Drift

Drift is a unique tool that seamlessly integrates with your business in order to understand and adapt to customer interactions in real-time. It is able to personalize and humanize the buying journey at every touchpoint with its comprehensive conversational AI tools. 

Key features

  • Conversational landing pages (CLPs)

  • Bionic chatbots for personalized playbooks

  • Real-time ABM notifications

  • Site concierge 

  • Meeting scheduler  

Pros

  • Video messaging available 

  • Drift Intel to examine leads and accounts 

  • Audience targeting tools 

Cons

  • Potential challenges in routing conversations to the appropriate person, according to some users

  • Limitations in creating comprehensive user profiles

  • Reports and metrics can be too complex 

Price

The Premium plan for small businesses is $2,500 per month.

8. LivePerson

LivePerson's Conversational Cloud platform facilitates meaningful interactions, leveraging a vast dataset and cutting-edge safety tools. With LivePerson's innovative solutions, businesses can gain valuable insights into customer preferences, seamlessly connect across multiple channels, assist their agents, and use AI-driven automation to enhance both business outcomes and customer experiences. 

Key features

  • Live voice, live stream, and video options

  • Visitor 360

  • Messenger customization

  • Experience A/B testing 

  • Rules-based chatbots

Pros

  • Chatbot meeting scheduling option 

  • Chatbot support deflection option

  • Team inbox 

Cons

  • Analytics builder can be complex to use, according to some users

  • Reports filtering can be cumbersome to navigate 

  • Reporting tools take up large amounts of data and time and can be slow 

Price

The Pipeline AI growth plan is $3,500 per month. 

9. Conversica

Conversica is a leading conversational AI tool using advanced AI to integrate systems, enhance lead generation, and create more personalized and human-like conversations. With its intuitive interface and robust features, Conversica streamlines sales workflows and enables teams to focus on high-value activities, ultimately assisting with the way businesses engage with their customers.

Key features

  • Revenue Digital Assistants complete tasks autonomously

  • Able to deliver leads and target accounts to sales teams

  • Performance monitoring and feedback collection

Pros

  • Revenue Digital Assistants are multichannel and multilingual

  • Integrates into the existing tech stack 

  • Able to fill in conversation gaps for a more human experience 

Cons

  • Initial setup complexity

  • Limited customization options for conversation flows

  • Lack of scalability

Price

See Conversica for pricing information. 

10. Botsonic

Botsonic boasts easy setup and integrations and comprehensive customization options for conversation flows so that businesses can tailor interactions to their unique needs. It also uses flexibility and accuracy in understanding customer inquiries for better and more efficient conversations and customer satisfaction. 

Key features

  • AI Copilots trained with business data 

  • 24/7 support 

  • Automated employee support 

  • AI-assisted conversational commerce 

  • Automatically measure resolutions

Pros

  • No-code 

  • Can integrate on the web, SMS, WhatsApp, and more

  • Multilingual 

  • Able to understand metrics like CSAT 

Cons

  • Basic integrations and messaging is limited for certain plans

  • Bot is not able to answer some questions and has to be updated continuously

  • Lack of UX customization options 

Price

A free plan is offered with limited features. Paid plans start at $40.83

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What are the benefits of conversational AI chatbots?

Here are the main benefits of conversational AI chatbots:

Enhanced customer support experience

A solitary chatbot possesses the capability to efficiently handle numerous customer queries simultaneously. By integrating conversational AI, these chatbots not only expedite query resolutions but also elevate the customer experience through personalized engagement. Unlike rigidly scripted responses, they foster genuine interactions by initiating casual conversations with customers. Incorporating such chatbots across conversational platforms like mobile apps, websites, and messaging channels holds the potential to substantially enhance customer engagement and curtail attrition rates.

Round the clock and across all channels

Conversational AI chatbots stand ready across all your channels, 24/7, poised to assist your customers wherever they may be in the world. Seamlessly equipped to handle simple inquiries, these AI bots go the extra mile by proactively offering additional information, ensuring customer satisfaction. Take, for example, a customer seeking to return a product; the chatbot can smoothly transition the conversation to inquire about the issue, delivering a personalized experience while providing valuable insights to your team instantaneously.

With more complex inquiries, a chatbot gracefully transitions the conversation to a live agent or gathers pertinent information for a follow-up. This ensures no customer is left unattended and sets clear expectations for agent involvement.

Moreover, these conversational bots seamlessly integrate into messaging platforms such as WhatsApp and Facebook Messenger, offering customers the convenience of reaching out through their preferred channels.

Opens up opportunities for upselling

It's widely recognized that chatbots excel at resolving customer tickets and issues. However, conversational bots possess an additional prowess: upselling to customers. With a keen understanding of customer preferences and context, these bots adeptly recommend products or services that align with customer needs. Leveraging insights from cart data, purchase history, and inquiries, they tailor their suggestions to offer the most suitable upselling and cross-selling opportunities to customers.

Break language barriers

As your business expands, catering to customers from diverse regions becomes essential. However, hiring agents worldwide isn't always feasible. That's where conversational AI chatbots step in, equipped with translation software to offer multilingual support seamlessly. In today's digital age, businesses of all sizes can easily access global audiences. Therefore, multilingual support becomes increasingly crucial for fostering meaningful connections with customers, regardless of the company's scale.

Improve agent efficiency

Integrating conversational bots into your support teams can significantly enhance efficiency and effectiveness. These bots excel at autonomously resolving straightforward issues without the need for human intervention, thereby allowing support agents to allocate their time to tackling more intricate challenges. By effortlessly handling multiple inquiries simultaneously, they enable your support team to consistently meet metrics and service level agreements (SLAs), ensuring optimal performance and customer satisfaction.

Differences between conversational AI and chatbots

Chatbots typically focus on performing specific tasks within a narrow domain. They excel at providing quick solutions within their designated scope, but may struggle to handle more complex requests. Bots often leverage predefined scripts and knowledge bases to respond to customer inquiries, and may experience difficulties comprehending slang or unclear user inputs.

Conversational AI, on the other hand, is broader in functionality and aims to simulate more natural conversations across a wide range of domains. It can handle a greater variety of customer queries, adapt to different conversation styles, and learn from user interactions. Conversational AI may also be integrated with search engines, enabling it to perform web searches based on user questions, expanding its scope far beyond prespecified scripts and knowledge repositories.

Use cases for conversational AI chatbots

Informational

Chatbots are knowledgeable assistants, offering instant responses to frequently asked questions, product inquiries, and troubleshooting guidance. They can access a broad range of information from outside sources across various industries to disseminate information efficiently and streamline processes. From answering questions to offering technical support, these bots deliver accurate and timely information. 

Data capturing

Chatbots can collect and record data, such as customer preferences, demographic information, and feedback, during conversations. By easily integrating with different systems, conversational AI chatbots automate the process of capturing and organizing data for better efficiency. This information and data help businesses make informed decisions, optimize operations, and personalize customer experiences. 

Transactional

Through conversations, AI chatbots can facilitate financial transactions, bookings, reservations, and other monetary exchanges. They can guide users through each step and securely process payments or bookings within the chat interface. Integration with payment gateways ensures smooth and secure transactions and drives customer satisfaction. 

Proactive

Chatbots can anticipate user needs and proactively engage with them to provide relevant information, assistance, or offers. They can contact customers who have abandoned their online shopping carts and offer help or provide specialized discounts to encourage completing purchases. These bots can also send notifications about order status updates, product recommendations based on past interactions, and more. 

Features to look out for in a conversational bot

Accuracy

Conversational bots must provide precise and reliable responses to customer inquiries. They should adeptly grasp user intent to ensure optimal resolution of queries, delivering the most effective solutions possible.

Efficiency

Conversational bots aim to reduce the workload on your support team, enhance customer satisfaction, and increase agent productivity.

Scalability

Conversational AI bots should continuously learn and enhance their capabilities through each customer interaction. Additionally, as your business scales, seamless integration with third-party tools should be effortless.

Instantaneous

Chatbots are designed to swiftly resolve customer inquiries, providing instant responses without delay, even during peak periods.

Cost-effective

Conversational bots are engineered to reduce your support and operational expenses, sparing you from the need to recruit additional agents to address customer inquiries.

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Why choose Freshchat for conversational AI chatbots?

Deliver faster resolutions

Ensure swift issue resolutions with CSS. No more waiting in chat queues for customers; Freshworks’ chatbots are adept at discerning user intent and promptly delivering accurate resolutions.

Proactive customer engagement

Empower your business with proactive engagement by leveraging conversational bots that don't wait for customers to initiate contact with your agents. Sit back as these bots take charge, automating engagement based on customer activity on your website, ensuring proactive interactions that enhance customer satisfaction and drive conversions.

Learn on the go

Freshchat chatbots are driven by AI and ML technologies, continuously learning from every customer interaction to provide optimal resolutions.

Seamless agent transfer

Escape the cycle of endless chatbot conversations with CSS. Our intelligent bots adeptly recognize the complexity of issues and seamlessly transition the conversation to a human agent when necessary.

Personalize customer conversations

Leverage the capabilities of Freshworks’ conversational bots to access customer data from your CRM, enabling personalized support and tailored product recommendations.

Third-party integrations

Effortlessly unify your support experience by seamlessly integrating our intelligent chatbots with messaging channels such as WhatsApp, Facebook Messenger, Apple Business Chat, and various other tools.

Optimize bot performance

Utilize our real-time dashboard and customizable reports to assess your chatbot's performance across a range of metrics, allowing you to refine and enhance its effectiveness continuously.

Why choose Freshchat

The Freshchat is a top choice for businesses looking to enhance their customer interactions through conversational AI and chatbots. Powered by Freddy AI, Freshdesk Omni offers dynamic and adaptive knowledge base capabilities, making information constantly relevant and up-to-date. It supports omni channel service delivery, ensuring customers can access support through their preferred channels, including sophisticated self-service portals and conversational chatbots. These tools not only streamline customer queries but also boost agent productivity by suggesting responses and recommending actions. The integration of Freddy AI Insights further allows for actionable, data-driven decision-making, and optimizing service outcomes. This comprehensive suite transforms customer service into a more personalized, efficient, and proactive journey, making it an ideal solution for any organization prioritizing advanced AI-driven customer service technology.

Conversational AI vs. generative AI

Conversational AI and generative AI both serve essential roles in various applications and have distinct characteristics and functions that are considered in the artificial intelligence category (or AI technology). Both use deep learning and natural language understanding to develop comprehension and response to human language prompts.

Conversational AI focuses on enabling natural language interactions and conversations and is primarily used in chatbots, virtual assistants, and customer service applications to understand and respond to user queries. The primary goal is to facilitate seamless communication and enhance user experience. Generative AI, on the other hand, is focused on generating new content, such as images, text, or music, that mimics human creativity.

Generative AI models, such as Generative Adversarial Networks (GANs) and Variational Autoencoders (VAEs), are trained on large datasets to learn patterns and generate new data samples. The primary goal of generative AI is to create novel and realistic outputs that exhibit human-like creativity and imagination.

Conversational AI chatbots- FAQ

How can conversational AI chatbots contribute to increased customer satisfaction?

Conversational AI chatbots contribute to increased customer satisfaction by providing instant responses to queries, reducing wait times, and offering personalized assistance 24/7.

What industries can benefit from using conversational AI chatbots?

Many industries can benefit from conversational AI chatbots including banking, healthcare, insurance, hospitality, airlines, and more.

Can conversational AI be integrated with current business processes?

Yes, conversational AI can be easily integrated with current business processes. Whether it's customer service, sales, marketing, or internal operations, conversational AI solutions can be tailored to fit existing workflows and systems, enhancing efficiency and effectiveness.

Is security a concern with conversational AI?

Yes, security can be a concern if the AI is not properly secured. Implementing robust security measures, such as encryption, access controls, and regular security audits, is essential to mitigate risks and safeguard against potential threats in conversational AI systems.

How can businesses measure the effectiveness of their conversational AI chatbots?

Metrics like engagement rate, goal conversion rate, resolution rate, and more help businesses measure the effectiveness of AI chatbots.

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