Conversational AI Chatbots : A revolution in customer service

Updated on
May 12, 202319 min read
People love BotPenguin Chatbot Maker Platform


People love BotPenguin Chatbot Maker Platform

Have you ever been to a website looking for something, scrolling through the massive list of FAQs, wasting your time and energy searching for it? How about AI chatbots eliminating all these steps and serving you with instant answers? Does it not sound like a revolution in customer service?

In this 24/7 technology-driven world, customer satisfaction is an integral element to the success of any business. With the advent of technology, virtual space is overshadowing natural space. In this scenario, chatbots are becoming popular actors in interacting with users. They are like virtual assistants who help customers find information quickly, remember stuff easily, and buy things effortlessly.

Chatbots are powered by machine learning. They rely on artificial intelligence and can interact with customers by following pre-programmed rules and instructions. Though chatbots are automated, they can be personalized to welcome the customer. They interact with users via text messages or audio. These are not very formal means of communication and make customers feel at ease while interacting with bots.

According to research conducted by Forrester, messaging is the most preferred customer service channel preferred by customers in the US, Korea, India, and Singapore. Hence, it is no surprise why customers love to interact with chatbots!

Chatbots were first introduced to the world by Alan Turing in 1950 when he authored the paper ‘Computer Machinery and Intelligence. He urged the students to question whether machines can think or not. Today we have the answer as yes! Every major tech company has its chatbot, which can converse and think and respond to queries.

How are Conversational AI chatbots different from rule-based chatbots?


Companies are constantly inspired to adopt a bot of their own, which can manage their data and save time in the long run. Conversational chatbots continuously learn from their information, understand customer behavioral patterns, and apply their decision-making skills to solve problems.

On the other hand, rule-based chatbots are not conversationally very flexible. They can answer simple questions, but they often divert such complex questions to a human agent when questions go beyond their defined rules. They can work only in scenarios for which they are trained and cannot automatically adapt to complicated situations. 

In the years to come, conversational AI chatbot technology is bound to improve customer experience and cost-efficiency. These improvements will make rule-based chatbots obsolete. Conversational chatbots are no longer a fad. They are here to stay, bot-o-mating the customer service process.

The Conversion Language of Conversations

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Benefits of AI Chatbots:


24/7 customer service

Chatbots are powered by artificial intelligence and do not require any human employee to provide customer services. They engage customers at the front line itself and try to resolve as many queries as they can. In case of complex queries, they redirect customers to a higher platform.

Instant response

Chatbots are available to answer user queries round the clock. They provide solutions with lightning-fast speed, which satisfies customers and speeds up their decision-making process.

Improved customer satisfaction

Chatbots are like salespersons but not very pushy. They are available to help the customers without being intrusive. Chatbots are friendly and personalized. They remember past conversations, learn from them, update themselves and help customers accordingly.

More productivity

Chatbots answer customer queries and transfers users to service agents when they are unable to provide answers in complex cases, and human intervention becomes inevitable. They deal with mundane and daily questions efficiently.

Improve the conversion rate automatically

Chatbots enhance the quality of sales by eliminating obstacles. They provide customers with what they require instantly, save time and interact simply through texts instead of emails or phone calls.

Easy to use and understand

Chatbots are easy to build and easily set up. Button responses prevent visitors from typing an answer, saving time and energy yet again. Chatbot interfaces are universal and can be connected to other interfaces such as Facebook.

Top industries benefiting from AI Chatbots:

Top-industries-benefiting-from-AI Chatbots

According to Chatbots Magazine, AI-based customer service has helped businesses save 30% of their costs by allowing prompt resolution of basic customer queries.

Real estate

 Conversational chatbots are being deployed over many industries and have made a significant impact in terms of customer engagement. Chatbots have marked their presence in the real estate sector as well. They prove to be of great assistance in saving time, money, and resources.

AI chatbots in the Travel industry

 Thanks to AI bots, the travel industry is undergoing a sea change. The industry has capitalized on booking processes and faster response to customer services. Chatbots encourage direct bookings, offer multilingual support, ensure smooth arrivals and departures, thus improving the market potential.


AI chatbots in Education

Chatbots have bonded well with numerous industries, and the education industry is one among them. The Chatbots have increased communication, increased productivity, and minimized ambiguity by focussed, result-oriented conversations. They simplify administrative formalities for students, familiarise them with the university’s culture and provide technical support and assistance.

AI chatbots in Health care

During COVID-19, the healthcare industry came under tremendous pressure due to a lack of human resources and funds. Chatbots can be deployed as engaging tools to communicate with patients and provide them with timely information to overcome such situations. Chatbots reduce waiting time, provide medical advice, fix appointments, and collect patient feedback. 


AI Chatbots helps in Finance

Finance is all about money and banking, and AI chatbots offer numerous benefits regarding both. Conversational chatbots greet customers, obtain information about their problems, provide them with relevant information, accept payments from users and perform many other tasks. Banks are now beginning to integrate technology into their workflow. A report by Salesforce has revealed that 32% of the companies in the finance industry are currently using chatbots.


Businesses are now turning towards conversational AI chatbots to provide lightning-fast customer services to their users and increase their sales exponentially. Research by PWC shows that 34% of business executives have expressed that chatbots reduced their workload. This increased productivity and allowed them to create new business ideas.

Chatbots are available on-demand and are useful in many ways. With more sophistication in Artificial Intelligence technology, chatbots are evolving daily. The cherry on top is conversational, blurring the line between humans and bots. They are, thus, the new revolution in customer service.

Related Article: How Voice Assistants are Transforming Our Daily Lives Top 5 Reasons why BotPenguin is the best healthcare chatbot available

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