What is AI chatbot? The basic knowledge for you to know

AI chatbot is more and more developing in the world, so there are many businesses want to build a private system to serve their customers best. However, they don’t know where to start because AI chatbot systems require many knowledge and experts to form, this article will help business understand the basic things of AI chatbot, and show them the benefits that this technology brings.

1. What is AI Chatbot? 

AI Chatbot – Source: Nobel explorers

AI chatbot is a program that combines AI and called AI chatbot or artificial intelligence chatbot in order to interact with humans. The benefit of this tool is to replace the consultant staff who takes responsibility for answering customer questions.

There are two types of chatbot communication:

• Textual
• Auditory

The prominent case study of applying chatbot from 2 major technological platforms is Line and Facebook. They announced that their platforms use API to support  chatbots in the year 2016, this has brought many benefits for users who got fabulous experiences.

2. Benefit of AI chatbot 

Benefits of AI – Source: Cyfuture

There are many benefits that AI chatbot brings:

For users, they will get happy when businesses apply the AI chatbot:

• Users just type their question through text, and they can contact with businesses right away.
• AI chatbot works through 24/7, so users’ problems can be handled with ease.

For businesses, this uses machine learning technology to analyze raw data, or data which is collected from users, and show the appropriate answer statistically. AI chatbot will be beneficial for users because it can answer various questions from users. Businesses can get beneficial include:

• AI chatbot or machine learning chatbot can show the most statistically appropriate answers from the amount of learning data, so businesses can make use of it to explore users’ demands.
• The process of learning data from users who interact with chatbots, which will help businesses enhance their conversation with customers correctly.
• When using AI chatbot type, businesses can answer the complicated questions, and make users feel that answers look like humans’ interaction.

3. AI Chatbot mechanism

To be honest, the chatbot works as a system or platform considered as an application and a bot which are applied by API. In this system, questions are explained, and corresponding answers are created in bot, then the information of the bot system will return to application through API.

When users search information that is contained in the database, they will get answers based on the analysis. For instance, users search the phrase “how much is it” , the AI chatbot will analyze that sentence, and give the answer based on it.

Furthermore, chatbot has 3 types based on different algorithms:

• Scenario type:

This type will have an accumulated scenario in the programmed database, which means that users just can get available answers when they select the set button in the chat.

• Keyword recognition type:

This type will base on what users look for,and it gives the suitable answers. The mechanism of this type is to use the keyword and AI to identify how to helps users get the best answers.

• Contextual type:

This combines between machine learning (ML) and AI to record users’ conversation. Businesses must collect the information to find out and develop it naturally. The big benefit of this is chatbot that can talk with users relied on the context in order for itself to enhance from users requirements in the past.

For example, when users book pizza on the web, Bot will store the data from the conversation that interacted with users. Then, it can analyze what users like, and as the result, the bot will recommend the favorite things for users as well as remember their address, and payment information.

In the next buying, it will automatically question users who want to re-order or not, users just need to respond yes or no.

4. AI chatbot services

4.1. Chatbot API

Source: Livezilla

This is the main body of chatbot that allows users to assemble a conversation by registering words and answering data.

4.2. Language processing system

This is the system that analyzes and clarifies questions, which is the brain of chatbot with AI. This service usually ties with Chatbot API, so you don’t need to take care of it spreadly.

4.3. Messaging API

Messaging API – Source: Line

This is a conversation API provided by SNS allowing to connect chatbots. Example of this service is Line business connect (LINE ビジネスコネクト), or Facebook Messenger Bot.

4.4. Web chat

Webchat – Source: Purechat

This service can be installed on a website, and it can connect with Chatbot API for users who can experience it easily.

5. AI chatbot cost

When applying AI chatbot, you must consider various fees including:

• Initial contract fee from 300,000 to over 1,5000,000 JPY
• Scenario creation and design fee
• Running fee (monthly usage) at least 20,000 JPY

Moreover, if you want to build an in-house chatbot, you must recruit experts that you will pay the salary monthly. So in this case, you should consider partnering with an experienced technological company like BAP that we ensure to provide the best service for AI, and you can save more money compared to others in Japan.

This is the basic thing that BAP wants to provide you, and we hope that you can get it with ease. If your business wants to build an AI chatbot system, please contact us to discuss further.