What is an AI Chatbot?

In terms of scope, complexity, and capabilities, AI Chatbots have evolved considerably over the last few decades. Owing to advancements in NLU & ML, we now live in the era of AI chatbots or Intelligent Virtual Assistants – a sophisticated, interactive Conversational AI solution that can break free from the ‘company script’ and truly put your customers first.

The turning point in the evolution of chatbots was the advent of two key AI technologies – 

  • Natural Language Understanding (NLU) - Enables a chatbot to understand inputs in ‘natural language’ and helps the user to communicate as they chat to a human agent.
  • Machine Learning (ML) - Enables a chatbot to get trained and become better at interacting with customers and resolving their queries

Read more: 10 Best AI Chatbots In India

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Read Haptik’s comprehensive guide on the evolution of Conversational AI from Chatbots to Intelligent Virtual Assistants.

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Why Use an AI Chatbot for business?

After years of broken service experience, customers struggle to interact efficiently with brands. In order to repair the same, brands prefer to adopt AI chatbots and eliminate the following challenges faced in business.



Long wait times

Getting help through conventional channels like phone or e-mail takes too long often resulting in a frustrating experience for customers, particularly when they require instant support.



Inefficient Customer Service

Most contact centers are heavily dependent on human agents, who can only assist a limited number of customers. Without a significant increase in manpower, it becomes difficult for businesses to scale up customer service operations.




Lack of Personalization

Due to the sheer volume of queries, conventional support functions are unable to offer dedicated and personalized attention to customers with complex issues, leading to a poor experience.

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How AI Chatbots Can Help


The traditional approach to solving these customer experience problems would be to hire additional human resources. But that means incurring substantial hiring, training, and retention costs. It also does not solve the issues that arise from an agent’s lack of knowledge or competence.

A better approach? Implementing an AI chatbot solution.


Scale-up Customer Support exponentially: By resolving around 80% of routine support queries end-to-end. This allows human agents to focus their attention on solving more complex customer issues.


Slash Recruitment Costs: By handling the same volume of routine support queries that more than 600 chat agents would handle in a month. This helps in saving costs for hiring, training, and retention.


24/7 Availability: By eliminating the scope of unavailability outside the working hours, and enabling brands to offer an uninterrupted support experience to customers round the clock - 365 days.


Facilitate Conversational Commerce: By delivering a standard support experience while interacting with a helpful and knowledgeable in-store sales clerk to an online shopping chatbot assistant. This maintains improved consistency in services and eventually boosts sales.


Case Study: Pepperfry amplifies Customer Experience using Pep, an AI-powered chatbot

How to Choose the Best AI Chatbot for your Needs

While choosing the best AI Chatbot solution for your business, assessment of your organization's technical capabilities becomes an important call. Once you analyze your needs to adopt and implement an intelligent AI chatbot, you also need to look out for these exceptional values that an AI chatbot should offer to your business.

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Sentiment Analysis


An AI chatbot helps you peruse extensive datasets and continues to build its own knowledge base. Powered with the Sentiment Analysis feature, AI chatbots help brands understand the behavioral patterns of the customer and offer personalized solutions automatically.

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In order to gather insights for your business, you need to choose an enterprise-ready domain intelligent AI solution that can be easily integrated into your existing CRMs, marketing software, help desk software, email tools, etc. to offer  a  zero-coding integration platform for brands.

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Analytics Dashboard


Analytics Dashboard enables businesses to drive customer success by measuring and improving the efficiency of  AI chatbots.  It helps brands resolve issues in real-time, analyze conversation funnels, measure drop-offs, and monitor customer trends.

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Intelligence Satisfaction Score


An industry-first framework to measure the effectiveness of an AI Chatbot. ISAT is calculated by taking a deep-dive into conversations handled by an AI chatbot, identify ‘positive’ and ‘negative’ chats, and analyze what use cases were efficiently handled by the chatbots.

How Haptik's AI Chatbot Solution Works

Haptik’s AI-powered full-stack Conversational AI platform enables brands to comprehensively solve business problems end-to-end, and at scale.

Our AI chatbot solutions are fueled and supported by the following key components:


Commerce NLU

The Commerce NLU (Natural Language Understanding) enables our AI chatbots to effectively simulate the behavior of a sales assistant, guiding customers with relevant recommendations and nudging them towards a purchase. Its key capabilities include Domain Knowledge, Information Extraction, Sentiment Analysis of Reviews, Context Manager and a Recommendations Engine.

The most cognitive AI solution designed using advanced NLU


Care NLU

The Care NLU (Natural Language Understanding)  has been designed keeping the pain points of customers in mind, their recent interactions with the business, and the task they are trying to complete. The key components of this engine include Language Detection, ASR (Automatic Speech Recognition) Classification, Context Manager, Spell Correction and a Conversational Engine.

Conversation Studio

The studio operates on a node-based graph model and enables the creation of interconnected conversational flows. You can test your chatbot and check for bugs and other issues in the conversational flow. Once the bot is live, you can continue to use the tool to iterate and improve the solution on the basis of real data. The solution also allows the integration of dynamic APIs to enable your IVA to tackle complex use cases.

Simplest way to build an AI-powered Intelligent Virtual Assistant

Smart agent chat

A solution to facilitate seamless transfer of chats to human agents started between the chatbot and customers, and monitor conversations. The key components of this chat solution include auto-routing of complex chats to human agents, monitor agent productivity, and measure success metrics such as First Contact Resolution and wait times.

Intelligent Analytics

Using Haptik’s Analytics Dashboard, businesses can review and resolve issues in real-time, analyze conversation funnels and measure drop-offs, and receive alerts for trending customer issues. It enables them to drive customer success by measuring and improving the efficiency of our AI chatbots, known as Intelligence Satisfaction Score (ISAT). It is calculated by taking a deep-dive into conversations handled, identify ‘positive’ and ‘negative’ chats, and analyze what use cases were efficiently handled by the chatbots.

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Haptik’s AI chatbot solutions are omnichannel and can be used by businesses to engage customers on platforms of their choice. Our cognitive AI solutions can also be integrated into any existing CRM platform, including Salesforce, Oracle, and Freshdesk.

We are no longer teaching customers how to communicate with systems, we are teaching the systems to communicate with our customers.

Our slogan is “Build Once - Deploy Anywhere” 


You can read more about our AI Chatbot Success Stories here.