What are Chatbots? How do they work? Why are they important?

What is a chatbot?

It is an artificial intelligence (AI) software or a computer program which conducts a conversation through audio or textual methods.

Why are chatbots important?

A chatbot represents the natural evolution of a Question-Answering system leveraging Natural Language Processing (NLP). Formulating responses to questions in a native language is applied in various enterprises end-use applications.

How does a Chatbot work?

Chatbots works on three methods:

  • Pattern Matches
  • Natural Language Understanding (NLU)
  • Natural Language Processing (NLP)

Pattern Matches

Chatbots utilizes pattern matches to classify the text or speech, and it produces a suitable response to the user. A standard structure model of these patterns is called Artificial Intelligence Markup Language (AIML). It is a programming language which is Extensible Markup Language (XML) dialect used by chatbots.

A simple example of Pattern Matching:

<aiml version=”1.0″encoding=”UTF-8″?>


<pattern> WHO IS BILL GATES? </pattern>


Bill Gates is an American business entrepreneur, author,


philanthropist, humanitarian, and known as the pricipal

founder of Microsoft Corporation.




<pattern>DO YOU KNOW WHO* IS</pattern>


<srai>WHO IS <star/></srai>




Then the machine gives an output

Human: Do you know who Bill Gates is?

Chatbot: Bill Gates is an American business magnate, investor, author, philanthropist, humanitarian, and known as the principal founder of Microsoft Corporation.

Chatbots only knows the answer because the given name is in the associated pattern. But chatbots can not go beyond the related pattern.

Natural Language Understanding (NLU)

Natural Language Understanding is a subtopic of Natural Language Processing in artificial intelligence (AI) that deals with machine reading comprehension. It uses the power of machine learning to convert speech to text and analyze its intent during any interaction.

Natural Language Processing (NLP)

Natural Language Processing is a subfield of Artificial Intelligence (AI) concerned with the interaction of humans and computers. The process where chatbots take some combination of steps to convert the user’s text or speech into structured data and used it to select the best answer to the query.

Why are chatbots important?

  1. Improves Customer Service:
  • Extensive Customer Assistance
    • 83% of online customers need support when they shop online. They may require help in understanding which product/service for their need or budget any time of the day. Chatbots can provide customer assistance anytime, like a real salesperson in a store.
  • Always-Available Customer Support
    • Chatbots can improve customer support. They are programmed to give an automatic answer to customers repetitive questions and forward the request to a real person if the problem needs a more complicated response.
  • Proactive Customer Interaction
    • Chatbots can proactively start a conversation with your customers beyond the routine “Welcome To Our Website.” These make your customers feel your brand is one step ahead and help improve your brand perception in the long run.

2. Increase Customer Engagement

    • Chatbots offer a real-time, one-to-one conversation that engages customers. They can increase the response rate by being available at any time of the day.

3. Monitoring Consumer Date And Gives Insights.

    • With feedbacks, chatbots can collect data through simple questions that can give you insights that can help improve your products or services. It can even help you optimize your website by using the data collected for improving your low concerting pages.

4. Better Lead Generation

    • Chatbots can ask necessary and most related questions, persuade other users and generate leads for you.

Chatbots with artificial intelligence are dramatically changing the digital business world. It can reach out to a broad audience in responding to customers in real-time and be more effective than human. One of the most significant benefits of chatbots in your business is they save time. They can provide fast and automated answers to your visitor’s questions and prevent them from waiting a day or longer to receive a response as they would have in the past.

Learn more about chatbots for your business. Contact us to request a free consultation.