What Is A Chatbot?

Written by Indicative Team


Chatbot Defined

A chatbot is a computer program that processes and simulates human conversations, allowing for the interaction between users and computers.

Through artificial intelligence, natural-language processing, and machine learning, chatbots can process data to deliver and answer, both simple queries and more sophisticated queries.

There are two types of chatbots:

  • Task-oriented chatbots – are single-purpose programs that focus on performing one function. These chatbots generate automated but conversational responses to user inquiries. Interactions with these chatbots are highly specific and structured and are most applicable to support and service functions. 
  • Data-driven and predictive chatbots – are often referred to as virtual assistants as they are much more sophisticated and interactive than task-oriented chatbots. These chatbots apply predictive intelligence and analytics to enable personalization based on user profiles and past user behavior. Apple’s Siri and Amazon’s Alexa are examples of data-driven and predictive chatbots.

Chatbots are used to benefit both businesses and consumers:

  • For businesses, chatbots are commonly used to manage incoming communications and direct customers to the appropriate resource.
  • For consumers, chatbots, perform a variety of services, including bookings, comparing products, and submitting requests.

The advantages of using a chatbot include:

  • Improved customer service. 
  • Streamlined shopping process. 
  • Personalized communication. 
  • Improved response rate. 
  • Automate repetitive tasks.

In Data Defined, we help make the complex world of data more accessible by explaining some of the most complex aspects of the field.

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