Chatbots Narratives: What is chatbot and How it works?

Updated on
May 12, 202314 min read
BotPenguin AI Chatbot Maker


BotPenguin AI Chatbot Maker

What is Chatbot? Is it essential or required? How does it help to raise your business's growth? How can you create your bot? 

There are so many questions arising in your mind about what exactly this technology is named as a chatbot. We are here to help you and answer your questions.

This blog will talk about all the in-depth information regarding Chatbot

The ongoing hot trend of deploying AI Chatbot into businesses is continuously becoming the eye of the public. 

Forbes research predicted that the chatbot market would reach $1.25 billion by 2025. 

In today's advanced era, where users experience weights equal to any product or service offered by the brand and, that's the primary reason for AI chatbots coming into existence. You can say bots are a crucial part of every business out there, no matter its size. 

  1. What is Chatbot? 
  2. How do Chatbots work? 
  3. Types of Chatbots? 
  4. What is the Chatbot Template? 
  5. Why is AI chatbot crucial for your business? 

What is Chatbot? 

Chatbot means an artificial intelligence program or software, capable of initiating conversation with a user through texting applications (chatting applications) websites, and mobile applications in natural language. It is described as one of the smartest, advanced, and promising ways of initiating interaction between machines and humans. 

It can also be termed as digital assistants for consultants that understand human language and integrate processes the user requests and give prompt answers. 

In the technological perspective, chatbot means or represents the natural development of a question answering system influencing NLP (natural language processing). It works to formulate responses to questions or queries in natural language, applied in various applications. 

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How do Chatbots work? 

Bots analyses and identifies the intent of the user's request to drive relevant entities. It is termed as the essential task of a chatbot. After the analysis, a suitable and instant response is delivered to the person. The working is done by adopting two main methods. 

Pattern matching

It focuses and utilizes the pattern matches to group the message or text and produces relevant responses. The model of these patterns is the Artificial Intelligence Markup Language (AIML). A chatbot can get the right answer and react to the correlated patterns. 

Natural Language Processing (NLP)

Natural Language Processing consists of two main classifications for functioning areas- natural language understanding and natural language processing. 

NLU is defined as the ability to understand a human context. It is the process of formulating structured data for a machine to understand. It follows three significant concepts- entities, context, and expectations. 

  1. Entities- represents the exact idea or purpose of your chatbot. 
  2. Context- there is no historical backdrop of conversation. It gives a unique and relevant response every single time. 
  3. Expectations- the primary expectation from any AI Chatbot is, it should have the ability to fulfil the expectations of customers and give relevant information promptly. 

However, NLP chatbots function and convert the text inputs into structured data, which is used to get the relevant answer. 

It consists of the following steps: 

  1. Tokenization- Analyses set of words in the form of tokens. 
  2.  Sentiment Procession- Aligns user responses with emotions. 
  3. Normalization- Considers typo errors that can alter the meaning. 
  4. Entity Recognition- looks for different sets of information. 
  5. Dependency Parsing- finds searches for common phrases that a person wants to convey. 

Types of Chatbots 

Bots process structured data to offer prompt responses to different kinds of users' requests. It is done with the help of predefined rules and AI-powered Chatbots. 

There are mainly two types of AI ChatBot: 

Rule-based bots

Bots go with predefined paths during the conversation with the user. At every step, the user needs to choose from given options that determine the next step in the online conversation. 

  1. As it follows predetermined rules, it makes it suitable for more straightforward scenarios. 
  2. Highly structured and most applicable to customer support services or functions. 
  3. Best go with answering common queries or questions like inquiry about business hours, order status, etc. 

Conversational Bots

The best word for them is virtual assistants or consultants. Conversation bots are much more personalized and interactive than rule-based. Have the ability to simulate the real human-based conversation. 

Conversational Bots empowers businesses and helps in delivering the best and pleasant user experience. 

  1. Understand even the complex intent and try to provide more relevant responses.
  2. Incorporates predictive intelligence and sentiment analysis to understand the exact context or emotion of the user request.
  3. Keeps on learning from user behavioral patterns. 

What is the Chatbot Template? 

A chatbot template can be defined as a pre-built intelligent and smart chatbot that can be directly integrated with your website or business portal. 

These templates can be modified as per your needs, nature of the business, and implemented at your website effortlessly. As every single brand deals in differential products and services, they have their own set of requirements, functioning capabilities, and expectations from the chatbot. 

Therefore, you'll find various Chatbot Templates and can yield more business opportunities with the progressing technological world. Though, the function remains the same that is automatic interaction but differs as per the industrial need. 

Botpenguin is one of the fantastic chatbot platforms offering a flamboyant set of AI Bots like: 

  1. lead generation bot
  2. Customer service chatbot 
  3. Assistant bot 
  4. Order Booking Bot 
  5. And much more 

Have your chatbot and make your business redefine the targets and goals you want to achieve. 

Why is AI chatbot crucial for your business? 

Now you might be wondering how chatbots are bringing immense growth and improvement to businesses worldwide. 

Bots are acquiring a significant part of the daily tasks of enterprises. They are bringing efficiency and cost-effectiveness to the companies. They are turning out to be the most convenient ways of executing customer support services. 

Gives support in resolving different types of customer queries and requests while reducing the need for human resources. 

As per Forbes studies, usage of chatbots will rise by 80% by 2020. That's why businesses are investing in improving the user experience.

Let's take a glance over some importance derived after adopting the chatbot strategy in your business. 

  1. Prompt and no delays- 21% of customers see bots have the easiest and convenient way to connect with the brand- Chatbot Report says.  Thus, customers receive an instant response without any further delay. 
  2. Availability- You can be 24/7 available for your prospects and help them with their questions and relevant solutions. And that's why it is one of the potential benefits of bots. 
  3. Better engagement- AI chatbot can bound the customer around the clock by offering personalized recommendations or solutions, boosting user experience. 
  4.  Scalability- It can handle the 'n' number of consumers without additional service or operational costs during peak business hours. 
  5. Automate lead generation & sales- It allows us to automate the sales funnel and directing the leads to the right team for other activities or nurturing—results in boosting the number of leads and conversion rates. 

There's so much to savor when it comes to the benefits of chatbots. Click here to read (Put benefits of chatbots blog link) 


Now you came to know what is chatbot and how it benefits businesses globally at a constant pace. 

Isn't it predictable, the future of chatbots? 

You will undoubtedly agree that bots transformed the ways of business functioning, especially customer experience. 

A useful bot said to be which identifies your business requirement, boosts customer satisfaction, and provides better control over customer conversions. 

Bots have become a crucial part of every enterprise to engage, market, and communicate with the world. In the coming future, it'll keep on advancing and offering more strategic backbone to business success. 

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