Artificial intelligence (AI) is fast developing, and it is already possible to create conversational virtual agents that can understand and respond to a wide range of questions. Chatbots aspire to be conversational AI.

But, as a business owner, you may be wondering how they differ and which is the best fit for your organizational model. To answer those questions, in this article, we'll compare chatbots and conversational AI. But before we go further first, let's understand what conversational AI is.

Defining Conversational AI

Conversational AI refers to any technology that allows users to speak or type to it and receive a response. Conversational AI includes traditional chatbots, intelligent home assistants, and various types of customer support software.

However, in this instance, we're referring to advanced communication software that learns over time to improve interactions and determine when to pass information to a human responder. The use of natural language understanding (NLU) as a core element of conversational AI is crucial.

Defining Natural Language

Instead of depending exclusively on a predetermined list of keywords to respond to automatically, NLU is a scripting method that helps software grasp the intent and context of human interactions.

Conversational AI can be programmed to respond differently to clients at different phases of the order process. An AI bot can handle even intricate orders with only some of the components eligible for refunds.

Customers discuss your company's actions and express what they expect to happen in the second scenario. AI can go over orders to discover which ones were canceled on the company's end and haven't been refunded yet, and then provide details on that circumstance.

What Are Chatbots?

Chatbots are the forerunners of modern conversational AI, and they often conduct dialogues that are carefully scripted and keyword-based. This means they're useless in talks requiring them to comprehend what customers are saying intelligently.

However, there are situations when chatbots can be beneficial to businesses. Notably, chatbots are well-suited to menu-based systems. Users are directed to submit specified responses, then used to generate pre-written responses or information retrieval requests.

Chatbots are a simple and economical option if you don't need anything more complex than the text equivalent of a user interface. Conversational AI, on the other hand, isn't simply beneficial for organizations with customer service teams who need to handle complex consumer concerns. In effect, it is improving and growing the difference between the two systems all the time.

Conversational AI VS Chatbots: Key Differences

Chatbots and conversational AI are designed to focus on distinct aspects. The most significant ones to be aware of are listed below.

Features Of Conversational AI:

The following are some of the essential elements of conversational AI:

● System of instruction: Your customer care representatives can analyze NLU findings and provide feedback using supervised and semi-supervised learning solutions. This trains the AI to recognize and respond to your company's distinct preferences over time.

● User-friendly interfaces: Because our AI employs a modern, graphical interface, users don't need to code to comprehend or update it. Extensions are plug-and-play conversational modules that can give immediate help for ordinary demands without requiring you to shape the AI. 

● Multi-language compatibility: Conversational AI systems can operate in multiple languages simultaneously while using the same underlying logic and integrations. These are just a few of the benefits that conversational AI can provide to companies. Various firms have different needs for their AI, which is where the versatility of the technology shines. For example, some businesses don't need to communicate with clients in many languages, and thus that capability can be turned off.

Features Of A Chatbot:

Most chatbots include the following basic features:

The majority of chatbots are incapable of comprehending sentences. Instead, they search for specific words that customers write and respond with an automatic response.

● Rapid Deployment: Chatbots are relatively simple to integrate into your system, which is advantageous if you need to get something up and dash. Conversational AI is intrinsically more powerful and capable than chatbots, yet shaping an AI's responses with machine learning takes time.

● Customer Intents: The majority of chatbots are capable of handling between 100 and 200 customer intents. In this context, a customer intent is something that the consumer attempts to communicate to the chatbot using a specific set of terms.

Benefits Of Chatbots Vs. Conversational AI

Conversational AI may provide various benefits to enterprises, ranging from data personalization to substantial customization for customers willing to invest time in training the AI. With that said, conversational AI has three distinct benefits that set it apart from the competition.

● Better Customer Interactions 

Customers receive prompt, suitable responses from conversational AI, allowing them to acquire what they want with the least amount of bother. This provides a far superior experience to standard chatbots.

● Shorter Wait Times 

Conversational AI can handle massive amounts of data from clients, effectively automating high-volume interactions and regular operations. This implies reduced time on hold, faster problem resolution, and even the capacity to gather and present information intelligently if things do get through to customer service professionals.

● Improved Human Assistance

Finally, conversational AI can help your firm provide better customer service. This means more cases are resolved each hour, more consistent information, and staff is less stressed because they don't have to spend as much time focusing on the same repetitive activities. Human agents may spend more time with each customer, deliver more personalized responses, and loop back into a better customer experience with a reduced workload.

● Chatbots Are Simple To Set Up

When allowed to focus on it, chatbots are fundamentally more straightforward to develop than conversational AI, to the point where a single user can install and adjust the system via a guided approach.

Chatbots are essentially question-and-answer systems. It's simple to provide quick, primary responses if you know what people ask or advise them how to react.

Chatbots are commonly used for customer service, but they can also be used for other aspects of your organization. Chatbots, for example, can be used to request supplies for specific persons or teams or as a shortcut system for retrieving particular, relevant information.


In the argument between chatbots and conversational AI, It is nearly always the best option for your business. Setting up and training the system takes time, but that time is cut in half thanks to extensions that perform everyday activities and inquiries. Once set up, a conversational AI is essentially superior at accomplishing most tasks.

So, if you wish to include chatbots and conversational AI in your small business, contact the ONPASSIVE team.