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Updated on
Jun 6, 202410 min read

What are the applications of AI chatbots?

Updated onJun 6, 202410 min read
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    Table of Contents

  • What are AI chatbots?
  • How does an AI chatbot work?
  • arrow
  • Applications of AI chatbot
  • Conclusion
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Chatbots that use artificial intelligence (AI) are a fascinating development in digital technology today. They can handle any task, whether assisting you with a pizza order, responding to special inquiries, or assisting you with a challenging B2B sales process.

Artificial intelligence chatbots can perform so many tasks that, at times, it nearly seems like magic. And because of this, AI chatbots can be perplexing to users (and even scary at times).

However, AI chatbots are only a tool you may use to enhance your online experience. Nevertheless, a strong one.

Therefore, you may be asking what exactly AI chatbots are. How do they function? And under what circumstances should you employ them to elevate your business conversations?

In this introductory guide to AI chatbots, we provide all those answers and more.

What are AI chatbots?

Artificial intelligence chatbots have been trained to have conversations that resemble those of humans using natural language processing (NLP). NLP enables the AI chatbot to comprehend written human language, allowing them to function independently.

What are AI chatbots?

In other words, AI chatbot software can comprehend language other than pre-programmed commands and respond based on the information already in the system. 

This enables users to take the initiative and express their intentions on their terms.

Additionally, as AI chatbots are constantly learning from their interactions, they can eventually modify their responses to various patterns and circumstances. 

You can use them for various purposes, such as assessing a customer's emotions or speculating what a website visitor is looking for.

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How does an AI chatbot work?

One of the major barriers to AI adoption today is that almost half of all marketers identify as AI novices. To build up an AI chatbot, however, you don't need to be a coder or have a Ph.D. in natural language processing.


You only require competent AI chatbot software and fundamental knowledge of how AI chatbots work.

An AI chatbot's basic function is comprehending and translating incoming data into pertinent outputs. To provide the optimal response, the AI chatbot will first attempt to understand the question's intent before looking at other aspects like tone and sentiment.

The AI chatbot needs access to a tone of conversational data to accomplish this. For this reason, a programmer must teach AI chatbots how to comprehend the context of a person's statements during a training phase. 

This comprehension enables the chatbot to provide complex answers in a natural and conversational way.

Applications of AI chatbot

What are the Features of WhatsApp Chatbots?

Chatbots for the insurance world

Many clients find it difficult to navigate the insurance market. Still, chatbots make it easier by providing information and suggestions in a more approachable and user-friendly manner. 

A few insurance providers are now using chatbots to automate their procedures and enhance the customer experience. 

Small company insurance has also been impacted by chatbots, which use Facebook Messenger to replace actual insurance brokers and streamline the process.

Chatbots for banks

The use of chatbots in banking is expanding rapidly. According to a recent study, people will soon receive their pay stubs via chatbot. 

The chatbot goes above and beyond the fundamentals of mobile banking to continue individualized conversations about each client's finances. 

Predictive analytics and cognitive messaging can be used by chatbots to carry out operations like loan repayment and payment processing, as well as to provide specific savings opportunities to customers.

Chatbots in the retail world

Chatbots are revolutionizing the retail industry in anything from restaurants to clothing stores. 

Messaging services like Kik, Facebook Messenger, Snapchat, and WhatsApp show positive consumer experiences. In actuality, personalization—not the mobile aspect—is the main benefit of chatbots. 

With the ability to generate interactions and retain vast amounts of client data, chatbots can better serve their users by customizing their recommendations and responses. 

Developing a personal relationship with customers is a wonderful skill for businesses in an era of hyper-personalization.


Chatbots in tourism

The days of spending days scouring travel guide recommendations are long gone! As more tourists use their mobile devices to plan their vacations, fewer people use travel websites. 

Real-time chatbots can respond to queries and offer suggestions and guidance. 

Users can now text a chatbot for hotel information and arrange a stay the day before they depart, saving them from having to make hotel reservations weeks in advance. 

There is a huge demand for chatbots in tourism because tourists are becoming younger and more tech-savvy.

Chatbots in education 

Youngsters are constantly plugged into their smartphones, which has led to an increased usage of chatbots in higher education. They are particularly well-suited to this demographic. 

Teenagers and students are looking for ways to use omnipresent technology in their studies as they turn away from social media for mobile texts.

While chatbots are not yet commonly employed in education, many robots can educate. Those already exist have successfully reached kids in a way they can comprehend and value.

Here are the different use cases of Chatbots

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It's not hyperbole to claim that AI chatbots are rapidly becoming necessary for B2B and B2C sellers.

However, even though AI is expected to have an annual impact on businesses of trillions of dollars, many firms still find it challenging to comprehend what it is and how to use it to improve their sales.

Have a look at BotPenguin to create some amazing AI chatbots!

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Table of Contents

  • What are AI chatbots?
  • How does an AI chatbot work?
  • arrow
  • Applications of AI chatbot
  • Conclusion