AI and chatbot apps


There has been a massive growth in the advancement of technology. As there is an increasing number of mobile app users, businesses should focus on providing a better user experience. Therefore, companies focus on increasing digital footprints to build long-term customer relationships.

How Can Businesses Stand Out From Their Competitors?

The answer is pretty simple. Businesses can use advanced AI technologies to create a bigger impact on the life of users.

Today, every industry is using chatbots to communicate with its customers. Industries such as grocery, healthcare, and banking are deploying chatbots to provide a smooth user experience to their customers.

Gartner says,” The demand for chatbots has been increasing faster. Its digital workers use 25% of the virtual assistants as of 2021.

If you think of how your business can benefit from chatbots, this blog is for you. 

What Is Artificial Intelligence (AI)?  

Artificial intelligence is something that we use in our day-to-day life. A few AI examples are Google Assistant, Alexa, and Cortona. AI is a computer system that trains computers to do human-like interactions.

Simply put, AI is about training machines to act like humans and mimic human-like capabilities.

AI is considered the heart of the tech world. An American entrepreneur (Mark Cuban) says, “If you cannot understand AI, machine learning, and deep learning, then you will become a dinosaur within the next 3 years”.

How Is AI Different From ML? 

You might have heard hundred times these 2 terminologies- AI and machine learning. However, AI and machine learning are not synonymous with each other. Machine learning is a subset of AI. AI and machine learning are now dominating businesses around the world.

AI is an umbrella term of ML. AI is an algorithm that guides computer systems to have inherent human-like capabilities.

For example, you might have used an Amazon Echo device in your home or office. Amazon Echo is a device that uses AI technology which you call “Alexa.” Alexa helps customers by providing real-time information, such as booking hotels, making online reservations, or answering customers’ specific questions.

Take another application of AI that is Industrial robots, which use AI technology to ensure regular system maintenance so that there is no system downtime.

On the contrary, Machine learning allows machines or robots to learn from past data and make predictions for the future. The process works in this fashion – The machine takes the data, feed it into its program, learns from that data set, and then produces an output.

Example – Google translator who can learn different formats of languages based on data feed in the system and provides the desired output to the user.

What Is A Chatbot? 

A chatbot is a software application that can make human-like conversations, answer customer queries, and engage with web visitors. Chatbots are an effective way to remove friction in a customer’s purchasing journey. These chatbots are trained on a specific data set to respond appropriately to customers.

These chatbots are popularly called Rule-based chatbots as they work on the basis of predetermined rules or keywords to converse with humans.

What Is AI Conversational Chatbot? 

AI conversational Chatbot

AI Chatbots is trained in such a manner that they understand user intent and provide the best possible answers to the customers. AI chatbots accelerate businesses’ digital presence as they refine their responses based on user intent.

These chatbots converse with humans using NLP (Natural language processing). AI conversational chatbots have a much broader scope than Rule-based chatbots.

These chatbots are best at answering product queries, recommending products to the user, and adding a personalized touch to the conversation.

 Difference Between NLP And NLU.  

Full formNLP stands for Natural language processingNLU stands for natural language understanding
MeaningNLP provide the ability to machines to make conversation with humans by understanding human textNLU focuses on understanding the actual intent of the user and then provides desired information
Data processingNLP processes the data by converting unstructured format into structured oneNLU uses sentimental analysis to understand the meaning of sentence
ApplicationsThe applications of NLP are – language translation and text analysisThe applications of NLU are – speech recognition and sentimental analysis

Let’s talk about some other types of chatbots that big corporations are using – 

1. IBM Watson (SAAS) 

watson conversation

IBM Watson allows businesses to build robust AI conversational cum virtual assistants. IBM Watson bots aim to deliver exceptional user experience by removing friction. It understands customers to provide accurate solutions.

Watson bot by IBM uses machine learning, Natural language processing, and Natural language understanding to understand the user’s intent and provide desired responses to keep the conversation going.

2. Dialog flow by google  

Dialog flow by google help businesses get NLP based chatbot that can interact with end users and be integrated with popular platforms such as Facebook, Twitter, Instagram, etc. These chatbots are trained enough to do voice and text-based conversations.

3. Raasa (On-premise) 

Raasa is an open-source framework that allows you to build, train and develop AI conversational chatbots that can be integrated into the website. These chatbots use NLU to make real time conversations with customers.

4. Freddie (BOTSHOT)

It is NLU based chatbot developed by Botshot that provides real-time recommendations to customers. It can be integrated on multiple channels and has multi-lingual capabilities. Freddie is not limited to solving the queries of customers, but it also performs the cross-selling and up-selling of hotel products.

Why Is There A Need To Train Chatbots? 

1. Customer support  

It is a must for businesses to train chatbots that will work around the clock. Chatbots provide 24* 7 customer support by solving their queries. Businesses need not worry about hiring customer support representatives who can answer customer queries overnight.

Deploying chatbots on the website and other platforms is an effective solution to provide continuous customer support.

2. Customer Engagement  

Chatbots use AI to provide personalized experiences to customers. Bots provide a channel where customers can reach out to them. Businesses must deploy bots on various channels to allow customers spend longer time on website. After all, we are living in a world where we need to be present where our customers are.

Bots can help to do so.

3. Conversational commerce  

Bots are trained to provide real-time product recommendations to customers.

There might be instances where customers visit a specific website, do not buy a product, and abandon the cart. In such a case, the bot will be trained to answer the last stage questions of customers, smoothens the checkout process by guiding along the way and sharing the promotional offers with customers.

AI has significantly impacted our lives, be it customers and businesses, for over a decade now. Technology is bringing a rapid transformation in our lives. AI is becoming stronger daily; as a result, most people started relying on it. Businesses have started using AI tools wherein an AI chatbot interacts with humans to make a dialogue-like conversation. The name of that AI tool is Chatgpt.

Let’s dig deeper to understand what chatgpt is exactly.  

What Is ChatGPT? 

Open AI has developed a model called Chatgpt, which can interact with customers. It has some rich capabilities like writing poems, giving answers to user queries, solving math problems, and offering customer services. It is accessible to the end users as research is still happening.

How Is Microsoft Planning To Use ChatGPT In Its Products? 

The CEO of Microsoft “Satya Nadella” says that Microsoft is trying to integrate CHATGPT in Bing and other office products. Microsoft wanted to turn azure into a cloud computing platform by providing AI access to a broader range of audiences.

Microsoft has invested $10 billion in ChatGPT, developed by open AI.

How Are Chatbot Apps Transforming Mobile Technology? 

Here are some benefits of chatbots that bring transformation to the life of businesses-

benefits of using chatbot

1. 24*7 availability 

Chatbots are best at providing end-to-end customer support. It answers customer queries day in and day out. Businesses need not worry about hiring customer support personnel and end up saving their costs. Customers need not take a headache finding products when required and get instant replies from AI-powered chatbots.

2. Increases customer engagement  

Chatbots hook the customers to spend a longer time on the website as they provide interactive experiences. AI-powered bots take feedback from customers and give them the best possible response, increasing customer engagement rate.

Bain & Company says,” Customers want to spend more money when they can interact with someone on a website or social media.”

3. Increases sales of businesses  

Chatbots help businesses to convert leads into potential customers. Businesses can leverage chatbots by offering discounts, showing the latest product collections, providing customized product recommendations, and pushing visitors down the funnel.

4. Provides a personalized user experience  

Chatbots provide hyper-personalized recommendations to customers by storing the data. It tracks the user’s activities, understands their preferences, and comes up with personalized tips and relevant answers.

Industries Where Chatbots Can Be Used In Mobile Apps  

1. Retail and e-commerce  

Conversation with AI Chatbot

Do you know that e-commerce businesses are growing exponentially? But businesses might end up ignoring one-to-one customer conversations when they have a growing customer base. Here, chatbots are vital in bridging the gap between you and your end user.

 Chatbots can help e-commerce businesses in the following ways – 

  • Sharing notifications about the product and its prices
  • Provide regular reminders to customers about the products that have been added to the cart or that they might forget to buy them.
  • Helping them by providing hyper-personalized recommendations such as guiding the prospect while placing an order and the process involved in making the payment
  • Providing customer services after customers end up buying products

2. Banking and Finance 

Chatbots prove to be a goldmine in the banking and finance sector. Chatbots can help customers access their personal financial information, help them avail of best-in-class loan services based on their needs and preferences, and share the best investment plans for them.

Chatbot has made the life of customers much more accessible. Chatbots are on-demand personal bankers providing instant responses to customers when needed.

3. Hospitality Industry  

Like other industries, chatbots play a vital role in the hospitality industry. Chatbots take care of visitors’ needs, be it booking hotels, making reservations, guiding visitors about local restaurants, and automating the payment process.

Hotels can then use these chatbots to cross-sell their services, such as salons, spa, and massage. It is possible through an AI-powered chatbot.

4. Insurance Industry 

Insurance Industry is another sector that is dependent on chatbots. Chatbots allow customers to upload documents. Insurance companies have deployed AI chatbots to help customers find specific information related to policies. Insurance chatbots solve customer queries by providing 24*7 customer support.

Wrapping Up 

Now you have a clear idea of how much important AI chatbots is for businesses and their customers. With the rapidly changing technologies, there is a need for companies to adapt according to changing customer preferences.

The arrival of Artificial intelligence and machine learning allows businesses to develop effective chatbot solutions for their customers.

If you need help in creating AI chatbots for your business, then it’s high time for your business to contact our experts.


Q1. How can I use chatbots for my business? 

Chatbots provide various benefits to businesses –  1. 24*7 availability 2. Increase customer engagement 3. Increase sales of businesses 4. Provides a personalized user experience 5. Lead generation 6. It proves to be a cost-effective solution

Q2. Why are chatbots becoming very popular?

Chatbots are becoming so popular because it enables businesses to solve the queries of customers and at the same time need not worry about hiring customer support representatives. Chatbots are essential for today’s businesses because of the following reasons – 1. Chatbots automate customer support 2. They automate repetitive tasks 3. Get access to customer insights 4. Enhances customer experience

Q3. What is the difference between chatbots and virtual agents?

A chatbot is an AI software that can communicate with the customer, and its motto is to keep the conversation going. Virtual agents, on the hand, are more than that. Virtual agents also use AI technology but have the skills to perform highly repetitive tasks. Virtual agents understand the intent of customers and then provide personalized responses.

Q4. Can chatbots be used for e-commerce? 

Yes, chatbots can be used for e-commerce, and many e-commerce companies are using them to level up the game of conversational commerce.

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