What is the Difference between Conversational AI Vs Chatbots?

What is the Difference between Conversational AI Vs Chatbots?

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by Alan Jackson — 4 weeks ago in Artificial Intelligence 4 min. read
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Chatbots and conversational AI solutions both have the same goal: to provide customer service and increase engagement. What’s the difference between chatbots and conversational AI solutions? There are many ways that digitization has allowed businesses to function smoothly even in difficult situations.

Technology has given businesses the ability to provide the best customer service possible, from the online marketplace to intelligent conversational AI solutions that enable us to interact with customers, to the smarter internet.


But there has been a misinterpretation of misleading semantics which creates an environment that forces users to interact and use chatbots and conversational AI.

Both concepts can be used interchangeably, even though they are interconnected. However, it is important to know the differences between chatbots and conversational AI chatbots in business contexts.

Both conversational AI solutions and chatbots work with a similar aim of offering customer service and ensuring better engagement.

Chatbots and their unique features

In the easiest terms, chatbots allude to the standard-based and limited programming framework, which has a bunch of characterized orders, watchwords, and classifications to portray client collaborations. With a basic plan and work process, the bots can undoubtedly explore and apply for a particular reason.

One can say that chatbots speak with the clients dependent on the explicitly planned work process and are not brilliant enough to comprehend and use the past discussions to determine the current inquiry.

So, chatbots have limited discussion limits and learning probability.

Somewhat recently, chatbots are gradually being supplanted by conversational AI chatbots, which are more intelligent, proficient, and compelling forms of the recently dispatched chatbots.

The fundamental highlights of the chatbots are:

  • 24/7 availability
  • Based on the use of keywords
  • Lack of the capacity to self learn
  • Focus on guided navigation only
  • Interface based on button focused
  • Quick time to the market

Conversational AI and its unique features

Conversational AI, on the other hand, is an advanced technology that allows machines to understand, plan and use past data. It also responds to human queries using natural language.

Conversational AI technology allows customers to communicate with the application easily and without any difficulties.

Conversational AI platforms allow for the interaction of voice, text, and actions. They also provide superior performance and sophistication to customers, which improves their overall experience.

Conversational AI has unique characteristics:

Natural Language Understanding to improve communication

  • 24/7 availability
  • Quick time-to-market
  • Pre-trained on thousands of industry-specific customer intents
  • Unlimited scalability and compatibility
  • Automatic Semantic Understanding
  • Multiple languages at once
  • Deep learning
  • Omnichannel presence allowing better social platform integration
  • User authentication support
  • Entity extraction
  • Voice-ready and compatible with voice assistants like Siri, Alexa, Google Assistant

Accenture found that 77% of executives plan to use conversational AI chatbots to improve customer service and after-sales.

Markets and Markets also found that the global conversational AI market is set to grow at a CAGR of 30.2 percent, from $4.2 billion in 2019 to $15.7 billion by 2024.
Also read: 10 Best Saas Marketing Tools And Platforms For 2021

Conversational AI vs Chatbots

Chatbots can be very useful for online businesses, but some drawbacks make chatbots with conversational AI more suitable and advanced for businesses in terms of their capabilities.

The statistics that relate to them can help you understand the simple comparisons between the two.

A Cognizantreport shows that around 69 percent of customers would prefer to use chatbots to answer their queries and receive service assistance. According to Hubspot, 84% of consumers are willing to use the conversation platform at at-home, 44% while driving, and 27% at work.

We have listed the key differences between them below. This will allow you to clearly see the difference between chatbots, conversational AI solutions, and chatbots.

Difference between Conversational AI Vs Chatbots

1. Natural Language Processing

Chatbots are built on logic rules. They offer answers based upon keywords embedded in or scripted into the system. Chatbots will not respond to questions that are outside of the appropriate algorithms.

Conversational AI relies on natural language processing to respond. The answer to a question is based on several technologies, including machine learning, deep learning, and predictive analytics, which offer a human touch.

The AI can learn by itself and respond appropriately to past searches and queries. Conversational AI is a better choice than chatbots in natural language processing.

2. Contextual awareness

Chatbots allow customers to access information about the business. This means that the revert will only be based on the keyword it has retrieved and cannot access any other data.

Conversational AI on the other hand focuses on past conversations, chats, and queries of customers and offers personalized suggestions based on these. Contextual awareness makes customers more satisfied and happier.

Conversational AI is, therefore, more effective than chatbots in the context of contextual awareness.
Also read: Top 10 Job Search Websites of 2021

3. Multi-intent understanding

All queries are not related to the same aspect. Chatbots will not be able to understand if you have a question about two aspects of customer service. This can sometimes cause customer irritation as the question must be asked again or separately.

Conversational AI platforms, on the other hand, can take multiple requests and switch topics in the middle of a conversation. This allows the user to not repeat the question or answer multiple times, increasing satisfaction and efficiency.

Conversational AI is therefore more effective than chatbots in multi-intent understanding.

4. Integration, scalability, and consistency

Chatbots are not only cost-effective but can also be dispersed and disconnected. They can be integrated into different platforms but lack consistency and scaleability. The complete query must be started once the platform has been switched. This can slow down efficiency.

Conversational AI solutions provide consistency in quality and scalability for queries it can handle. They also integrate with various social media platforms. Conversational AI is an omnichannel presence at scale. This improves customer experience.

Conversational AI is ahead of chatbots in terms of integration, scalability, and consistency.

4. Voice assistance and multilingual

Chatbots lack voice and multilingual support, as compared to conversational artificial intelligence. These platforms don’t allow users to ask questions in other languages or give voice commands.


Siri, Google Assistant, and Alexa are all great examples of conversational AI platforms. These platforms can understand commands in a voice mode in various languages. This makes it easier for users to communicate with them and receive a reply.

In the contexts of voice assistance and multilingual conversational AI is again ahead of chatbots.
Also read: How to Calculate Your Body Temperature with an iPhone Using Smart Thermometer

The key takeaway

Conversational AI solutions are, in conclusion, the future of business. According to studies, 70% of consumers plan to replace visits to banks, healthcare providers, and stores with virtual AI assistants.

Both chatbots and conversational AI bots are focused on providing better customer service and helping businesses reduce costs, but one is more efficient and effective than the other.

Companies are eager to implement innovative strategies that will benefit them long-term.

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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