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What is a Chatbot?

A guide to automated conversations

A chatbot is a software application programmed to simulate human conversation through text or voice interactions. Modern chatbots leverage Artificial Intelligence (AI) and Natural Language Understanding (NLP) to interpret user intent, providing automated, real-time responses across digital channels.

Customer having an SMS conversation with a chatbot.

How Chatbots Work: From Rules to AIlink to this section

Chatbots generally fall into three categories based on their underlying technology:

  • Rule-Based (Declarative): Operates on a set of predefined "if-then" rules. These are effective for simple, structured tasks like answering FAQs or navigating a menu.
  • AI-Powered (Predictive): Uses Machine Learning (ML) and NLP to understand the context and intent behind a user's query. These bots learn from past interactions to improve accuracy over time.
  • Generative AI: Powered by Large Language Models (LLMs), these bots generate original, conversational responses. They can handle complex, multi-turn dialogues that feel natural and human-like.

Why Businesses Use Chatbotslink to this section

Integrating chatbots into a unified communications or contact center strategy offers several competitive advantages:

  • 24/7 Availability: Provides instant support to customers outside of standard business hours without increasing staffing costs.
  • Immediate Scalability: Handles thousands of concurrent inquiries simultaneously, eliminating wait times during peak traffic.
  • Operational Efficiency: Automates routine queries (e.g., "Where is my order?"), allowing human agents to focus on high-value, complex problem-solving.
  • Seamless Integration: Modern bots sync with CRMs and backend systems to provide personalized experiences based on customer history.

Common Use Cases in the Modern Contact Centerlink to this section

  • Customer Self-Service: Resetting passwords, tracking shipments, or updating account information.
  • Lead Qualification: Interacting with website visitors to gather contact details and route high-intent leads to sales teams.
  • Internal Support: Assisting employees with HR inquiries or IT troubleshooting.
  • Proactive Engagement: Sending automated reminders for appointments or payment deadlines.

The 8x8 Advantage: Beyond the Botlink to this section

While chatbots are powerful, the best customer experiences occur when automation meets human expertise. 8x8’s intelligent self-service solutions ensure that if a chatbot cannot resolve an issue, the conversation is transitioned to a live agent with full context, ensuring a frictionless customer journey.

Frequently Asked Questions (FAQ)link to this section

What is the difference between a chatbot and an Intelligent Virtual Assistant (IVA)?

While the terms are often used interchangeably, a chatbot typically follows a set of rules or scripts to answer specific questions. An Intelligent Virtual Assistant (IVA) uses advanced AI and machine learning to understand context, handle complex requests, and provide a more human-like, conversational experience.

How do chatbots understand what a user is saying?

Chatbots use Natural Language Processing (NLP) and Natural Language Understanding (NLU) to break down a user’s sentence into "intents" (the goal) and "entities" (the specific details). This allows the bot to map the user's request to the correct automated response.

What happens if a chatbot cannot answer a customer’s question?

In a professional contact center environment, a bot should perform a "warm hand-off." This means the bot automatically transfers the conversation to a live human agent, providing the agent with the full transcript of the interaction so the customer doesn't have to repeat themselves.

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