Building A Successful AI Chatbot

ChatbotsWhat is a chatbot?

Chatbots are an information service interfaces that are done by a computer program, sometimes with the help of artificial intelligence (AI). The applications of a chatbot range from functional all the way to fun. Recently they have even been growing quickly both in sophistication and in popularity.

Where to use chatbots?

You might not believe it, but a large number of industries have already begun utilizing chatbot technology. Here are just some of them:

  • Restaurant: Bots are used to make reservations and coordinate various food deliveries.
  • Travel: Lots of bots are employed for the purpose of selecting itineraries and answering queries about the vacationer’s destination.
  • News: Bots in the news industry are used to filter and feed items of interest to the

Chatbots are becoming a major application across various industries, and many global brands are heavily investing in the chatbot technology.

Why can chatbots fall below users’ expectations?

Although chatbots tend to be widely used these days, their core technologies are in the early stages of development. This is the main reason why some of them can fail to meet the users’ expectations. Reasons for unfavorable user experience can be:

  • Lack of a strong business use, i.e. user demand for a particular bot is low or completely lacking
  • Apps or websites are more effective than a chatbot for the target task
  • Too many similar products
  • The chatbot has poor natural language processing capabilities
  • The chatbot is not well designed or well implemented

Why use a chatbot?

They are not universal solutions for every user interaction interface. In order to build a successful chatbot, the first step to consider is the question - “Why a chatbot?”

This consideration should include conversion friction, efficiency, usability, ability to get the job done, and ecosystem maturity. By exploring all of these factors, you will then be able to decide whether you should use a chatbot or another native app for your core business solution.

A couple of years ago Tj Maxx demonstrated the far-reaching power of an intelligent bot. Its chatbot has helped more than one million people buy faster and more efficiently the exact item they had in mind.

What can users do with your chatbot?

When answering this particular question, you will need to think from the users’ point of view. Chatbots follow different design principles to provide effective service in various cases. For example, a banking assistant type must utilize an advanced banking FAQ database to have the necessary smart responses. On the other hand, a shopping assistant bot is likely to make use of an enhanced short memory function, which will allow the user to retrieve previous information.

How to manage user expectations?

The different user expectations of a chatbot can be understood from the point of view of personalization, scale, engagement, convenience, and natural interaction.

  • Personalization: That’s the chatbot’s ability to adapt over time and customize the dialogues.
  • Scale: This is the number of user conversations that the chatbot service can conduct simultaneously.
  • Engagement: That is the ability to retain user attention.
  • Convenience: This is the different functions that the chatbot can perform.
  • Natural interaction: The similarity to natural human interaction.

What are the intelligence and cost requirements?

The level of intelligence and cost are completely up to your core business objective. You can evaluate this through several things, including industry vertical, complexity factors, and level of interaction.

  • Industry vertical: The level of intelligence and cost can depend on the industry you’re building the chatbot for. Compliance with all the complex healthcare and financial regulations, policies and standards, for example, adds to the costs of building a chatbot for the respective sector.
  • Complexity: The functional complexity of a chatbot that needs to integrate with back-end systems will also increase the level of intelligence and, correspondingly, the cost.
  • Interactivity levels: The necessary level of interaction impacts the complexity of intelligence and technology of the bot and, correspondingly, cost. For instance, advanced natural language processing is more human-like, but such cutting edge technology pushes up the cost manifold. For now.

Beyond these three variables, you can also look at factors such as the technical infrastructure, the number of platforms, and the custom integrations. Do nothe that a standard chatbot is almost always much cheaper than a customized chatbot.

These days it’s hard to deny the amazing capabilities that chatbots can bring into our daily lives, as well as the countless of possibilities they hold for the future. Answering the questions we previously mentioned is going to help you identify whether any currently existing third party chatbot lines up with any of your needs, or it will set the scope for developing your own chatbot. And that’s when you are going to be ready to take the next step in building a successful chatbot.

Chatbots Info Graphic