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With so many different AI chatbots for customer service available, figuring out which is best for your business is tricky. You know you want a chatbot to help you provide quick and consistent responses to simple customer queries, but you need to figure out which option is best. In this article, I'll help you make your choice easier by sharing my insights on the best AI chatbots to help customer service teams work more effectively and offer customer support around the clock.

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We’ve been testing and reviewing AI chatbots for customer service since 2021. As CX professionals ourselves, we know how critical and difficult it is to make the right decision when selecting software.

We invest in deep research to help our audience make better software purchasing decisions. We’ve tested more than 2,000 tools for different customer experience use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent & our software review methodology.

The Best AI Chatbots For Customer Service: Pricing Comparison Chart

This comparison chart summarizes basic details about my top AI chatbots for customer service selections. You can view pricing details and the availability of free trials or demos side-by-side to help you find the best option for your budget and business needs.

Tools Price
PartnerHero From $10/hour
Stonly From $99/month (billed annually)
Freshchat From $15/month for small teams
Guru From $10/user/month
Zoho Desk From $20/user/month
Zoho SalesIQ From $7/operator/month
CoSupport AI Pricing upon request
Conversica From $2999/month
Tidio From $25/user/month
Netomi No price details
Preview Image - <h2 class="c-block__title b-summary-table__title c-listicle__title h3" > Compare Software Specs Side by Side</h2>

Compare Software Specs Side by Side

Use our comparison chart to review and evaluate software specs side-by-side.

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How to Choose AI Chatbots for Customer Service

Choosing the right AI chatbot can help personalize customer interactions, and effortlessly handle high volumes of queries.

As you're shortlisting, trialing, and selecting AI chatbot for customer service consider the following:

  • What problem are you trying to solve - Start by identifying the AI chatbot for customer service feature gap you're trying to fill to clarify the features and functionality the AI chatbot for customer service needs to provide.
  • Who will need to use it - To evaluate cost and requirements, consider who'll be using the software and how many licenses you'll need. You'll need to evaluate if it'll just be the customer service teams, or the whole organization that will require access. When that's clear, it's worth considering if you're prioritizing ease of use for all, or speed for your AI chatbot for customer service power users.
  • What other tools it needs to work with - Clarify what tools you're replacing, what tools are staying, and the tools you'll need to integrate with, such as accounting, CRM or HR software. You'll need to decide if the tools will need to integrate together, or alternatively, if you can replace multiple tools with one consolidated AI chatbot for customer service.
  • What outcomes are important - Consider the result that the software needs to deliver to be considered a success. Consider what capability you want to gain, or what you want to improve, and how you will be measuring success. For example, an outcome could be the ability to get greater visibility into performance. You could compare AI chatbot for customer service features until you’re blue in the face but if you aren’t thinking about the outcomes you want to drive, you could be wasting a lot of valuable time.
  • How it would work within your organization - Consider the software selection alongside your workflows and delivery methodology. Evaluate what's working well, and the areas that are causing issues that need to be addressed. Remember every business is different — don’t assume that because a tool is popular that it'll work in your organization.

Best AI Chatbots for Customer Service Reviews

Here are brief descriptions of the 10 best AI chatbots for customer service that made it into my shortlist. I’ve explained what each one does best and included a screenshot for each to demonstrate their user interface.

Plus, there are 22 additional bonus options below if you’d like even more AI-based chatbots to consider.

Best for outsourced chatbot management

  • Free consultation available
  • From $10/hour

PartnerHero specializes in providing outsourcing solutions for customer operations. Their services encompass a broad range of support functions including customer experience, technical support, trust and safety, content moderation, AI and automation, and technology solutions. 

PartnerHero offers AI chatbot solutions designed to assist businesses in managing customer service operations. The company provides a range of AI chatbot platforms that feature conversational AI, agent assist, and knowledge management capabilities. These platforms aim to automate tasks, enhance customer interactions, and enable personalized communication. Other features include conversation design, integration optimization, custom bot reporting, and proactive bot monitoring. To get started, you can either bring your own bot, which will be managed by PartnerHero's conversation designers, or they can build you a custom PartnerHero bot.

PartnerHero offers integrations with a variety of customer service and business operation tools. Key integrations include LiveChat for real-time customer assistance, Google Workspace for productivity and collaboration, Salesforce for customer relationship management, Intercom for personalized communication, and Freshdesk for multi-channel support management.

Best for interactive step-by-step guides

  • 14-day free trial
  • From $99/month (billed annually)
Visit Website
Rating: 4.8/5

Stonly is a knowledge management platform designed to empower customer service by providing interactive step-by-step guides, decision trees, and AI-powered answers. It is recognized for its ability to deliver fast, accurate resolutions for both agents and customers, making it a strong solution for creating and sharing interactive, instructional content.

Unlike traditional chatbots that rely solely on text-based interactions, Stonly enables the creation of interactive, step-by-step guides within the chat interface. This feature is especially useful for complex troubleshooting, onboarding processes, or any scenario where users benefit from a more guided, visual form of assistance. The guides can include images, videos, and branching logic, offering a tailored experience that can adapt to the user's specific needs and responses, providing a level of interactivity and personalization that is uncommon among chatbot services.

Stonly integrates natively with a variety of tools including, but not limited to, Slack, Zendesk, Intercom, Salesforce, HubSpot, Gmail, Jira, WordPress, and Trello. These integrations facilitate seamless workflow and information sharing across platforms, enhancing productivity and support capabilities.

Stonly starting price is $99/month (billed annually) with a 14 days free trial.

Best for multi-channel customer engagement

  • 21-day free trial
  • From $15/month for small teams
Visit Website
Rating: 4.4/5

Freshchat is a digital platform designed to facilitate customer engagement across various communication channels such as messaging, live chat, email, and voice. It leverages AI-powered bots along with live chat features, positioning itself as a suitable solution for businesses aiming to maintain unified and contextual conversations with customers at scale.

Freshchat offers a range of features aimed at improving customer engagement through multiple messaging channels, including WhatsApp, Apple Business Chat, and Facebook Messenger, allowing for centralized management of conversations. The live chat functionality integrates with websites and apps, offering features like canned responses and customizable chat widgets. It also provides email ticketing, voice call capabilities from the chat widget, and AI-powered chatbots for automated support. The unified agent workspace gives support teams a comprehensive view of customer interactions across channels, while proactive messaging can be used to engage customers based on their behavior.

Freshchat integrates with Freshdesk for customer support, Freshservice for IT service management, and Freshmarketer for marketing automation. It also connects with Google Calendar, MailChimp, Segment, Zapier, Office 365, Google Apps, Slack, Facebook, LinkedIn, Jotform, Typeform, Calendly, Email Parser by Zapier, and ClickFunnels Classic to facilitate various business processes.

Freshchat's starting price is from $15/user/month. It has a 21-day free trial.

Best AI chatbot for instant knowledge access via advanced search

  • 30-day free trial + free plan available
  • From $10/user/month
Visit Website
Rating: 4.6/5

Guru is an advanced search and knowledge management platform designed to centralize a company's collective intelligence, enabling users to find the answers to their questions quickly. Its capability to deliver personalized, context-based recommendations in real-time positions it as a leading solution for businesses requiring instant access to their internal knowledge base.

Guru integrates AI-powered enterprise search with existing workflows and tools, which is crucial for providing instant access to knowledge within a company. What makes Guru different is its ability to deliver personalized, instant answers and its compatibility with a wide range of tools, which are essential for maintaining an efficient customer service operation.

Guru's AI Suggest feature uses artificial intelligence to present users with relevant knowledge from the Guru database, based on the content displayed on their screen. Knowledge Triggers automatically display information when specific conditions on a webpage are met, such as visiting a certain URL. The browser extension and integrations with Slack and MS Teams allow for easy access to the knowledge base within commonly used platforms.

Integrates include Slack, Salesforce, Microsoft Teams, Google Chrome, Gmail, and Outlook.

Best for service teams looking for a tool that learns fast from the knowledge base

  • 15-day free trial
  • From $20/user/month
Visit Website
Rating: 4.4/5

Apart from accomplishing everyday chatbot tasks, Zoho’s Zia AI-powered assistant is also trained to do other tasks like placing or editing an order based on the customer’s instructions.

The software turns all the information it collects into graphics and lists so that the details are easier to understand and analyze.

The tool also has a very intuitive development interface.Zoho’s Zia costs from $14/user/month and offers a 15-day free trial.

Best for its varied customization options

  • 15-day free trial available
  • From $7/operator/month
Visit Website
Rating: 4.4/5

Zoho SalesIQ is software designed to help businesses enhance their customer support and sales processes through live chat and visitor tracking. You can engage with your website visitors in real-time through a chat widget that you can customize to match your brand, add proactive chat messages, and even route chats to the right team member based on the visitor's behavior.

The software is user-friendly and easy to set up, and it offers a range of useful features that make it stand out from other live chat software. One of the standout features is the ability to see what visitors are typing before they hit send. This allows you to anticipate their needs and respond quickly. Another great feature is the ability to create chatbots that can handle basic inquiries and free up your team's time for more complex issues.

Zoho SalesIQ plans start at $7/operator/month, and they offer a 15-day free trial.

Best for faster, accurate, and secure customer support

  • Free demo available
  • Pricing upon request

CoSupport AI is an advanced generative AI copilot, engineered to elevate customer support experiences and enhance the efficiency of support teams with its AI-powered solutions. It consists of several components designed to assist businesses in managing customer support by leveraging artificial intelligence. The CoSupport Customer, an AI-powered chatbot, delivers precise, instant answers from its knowledge base, handling more inquiries with less effort and making support scalable. Meanwhile, CoSupport Agent enhances agent productivity by providing context-aware suggestions, cutting support costs.

In January 2024, CoSupport AI secured a patent for its customer support solutions. CoSupport AI distinguishes itself in customer support with its rapid responses, precise training on specific products for accuracy, a cost-effective subscription model, and secure, anonymized data handling..

It seamlessly integrates with your existing CRMs, such as Zendesk or Freshdesk, ensuring your workflow is not disrupted.

CoSupport AI provides pricing upon request. A free demo is also available upon request.

Best for continuity across the entire customer journey

  • Free Demo
  • From $2999/month
Visit Website
Rating: 4.7/5

Conversica is designed mainly to assist marketing and sales teams to engage potential customers as they enter the customer journey. The software integrates with Salesforce.

One of the tool’s most useful features is its ability to conduct A/B testing. This feature makes it possible to message different lead segments based on specific details collected by the bot.

Conversica costs from $2999/month and offers a free demo.

Best for small to medium sized businesses

  • 7-day free trial + free plan available
  • From $25/user/month
Visit Website
Rating: 4.7/5

Tidio is a customer service platform that helps your team level up your customer support and generate more sales. With an easily accessible live chat widget, Tidio makes your business available 24/7, while AI-powered chatbots engage your customers in real-time.

Tidio is currently trusted by 300,000+ websites worldwide.Tidio is designed and built for small businesses. It is delightfully easy to set up and use, so you can transform your customer service into a sales machine in no time.

Connect Messenger, Instagram, live chat, and email to Tidio multichannel and answer all messages from one place, also on mobile. Tidio easily integrates with all websites and platforms like WordPress, Shopify, Wix, BigCommerce, and many others.

Tidio is free for 3 operators and up to 100 unique visitors. Paid plans costs from $25/month and come with a 7-day free trial.

Best for reducing customer wait times

  • Free Demo
Visit Website
Rating: 4.8/5

One of the main advantages of using Netomi is that the tool has native integration into other tools such as Zendesk Chat, Salesforce Chat, and LivePerson. It’s also designed to help organizations to serve up highly relevant articles from their knowledge base so bots can quickly find answers to queries.

The tool provides immediate resolution to most problems by identifying feedback on social media.Cost information is not provided. You can request a free demo on the site.

Other AI Chatbots For Customer Service

Here are some other conversational AI platforms that didn’t make it into my shortlist of the best chatbot software, but are still worth taking a closer look at:

  1. Intercom

    Best for creating targeted messages for different customer segments

  2. Drift

    Best for real-time conversations with website visitors

  3. Jitbit Helpdesk

    Best for customer engagement through automation

  4. Kommunicate

    Best for seamless flow between AI chatbots and human agents

  5. Ushur

    Best for customer care in high-contact industries

  6. IBM Watson Assistant

    Best for budget-conscious customer service teams

  7. UDESK

    Best for seamless transition between AI and human agents

  8. HubSpot CRM

    Best all-in-one sales & chatbot software

  9. LiveHelpNow

    Best for omnichannel customer communication

  10. Neople

    Best for seamless integration with existing workflows

  11. LivePerson

    Best for answering questions during the purchase interaction

  12. Bold360

    Best for personalized digital experiences

  13. Khoros

    Best for faster insights and collaboration

  14. HappyFox Chatbot

    Best for teams of different sizes that need custom solutions


    Best for streamlining customer service processes

  16. Jetlink Conversational AI Platform

    Best for teams that want to scale

  17. Amelia

    Best for teams with little experience in conversational AI


    Best for higher education

  19. Heyday

    Best for retail messaging

  20. LiveChat

    Best for sales teams

  21. Finn AI

    Best for banks and credit unions

  22. Replicant Voice

    Best for teams looking for full automation

If you still haven't found what you're looking for here, check out these related customer experience management tools that we've tested and evaluated.

Selection Criteria for the Best AI Chatbot for Customer Service

Selecting the best AI chatbots for customer service required a meticulous approach, grounded in both comprehensive market research and personal expertise. I began by reviewing AI chatbot platforms with the highest customer reviews, gathering a broad list of potential candidates. My years of experience then played a crucial role in refining this list, as I evaluated each platform against a set of carefully considered criteria, designed to highlight the tools that genuinely add value by alleviating the workload on customer service teams and enhancing the user experience.

Core AI chatbot for customer service Functionality: 25% of total weighting score I sought out solutions that went beyond basic chat functionalities, focusing on conversational AI capable of providing self-service options for customer support. This involved identifying software equipped with features like natural language processing, scalability, integration capabilities, 24/7 availability, and the ability to learn and adapt from interactions.

Additional Standout Features: 25% of total weighting score To distinguish each platform, I looked for:

  • Advanced conversational capabilities that mimic human-like interactions.
  • Deep integration options with CRM systems, e-commerce platforms, and other business tools to ensure a seamless data ecosystem.
  • Unique customer engagement strategies, leveraging AI to deliver personalized experiences.
  • Capabilities that extend beyond text, such as voice recognition or augmented reality, to provide innovative service options.

Usability: 10% of total weighting score Usability assessments focused on:

  • Platforms that offer straightforward setup and management for your team, ensuring a minimal learning curve.
  • Customer-facing interfaces that are engaging and easy to navigate, enhancing the overall service experience.
  • Features that reduce wait and response times, streamlining ticket management.

Onboarding: 10% of total weighting score The onboarding process was evaluated based on:

  • Availability of comprehensive training resources and onboarding materials to ensure a smooth adoption process.
  • The presence of a supportive onboarding team dedicated to guiding new users through the setup and scaling processes.

Customer Support: 10% of total weighting score High-quality customer support was identified through:

  • Platforms offering extensive support channels, including live chat, knowledge bases, and community forums.
  • Evidence of proactive customer service, such as regular updates and responsiveness to feedback.

Value For Money: 10% of total weighting score In assessing value:

  • I compared pricing models for transparency and scalability, looking for options that offer clear benefits without hidden fees.
  • The potential return on investment was considered, emphasizing platforms that demonstrate a tangible impact on operational efficiency and customer satisfaction.

Customer Reviews: 10% of total weighting score The evaluation of customer feedback focused on:

  • Platforms with consistently high ratings for usability, integration, and the quality of AI-driven interactions.
  • Testimonials highlighting significant improvements in customer service metrics and workload reduction for live agents.

Integrations: Essential for ensuring the AI chatbot works seamlessly within the existing technological framework. I prioritized platforms with robust native integrations, API access for custom solutions, and compatibility with key business tools and platforms.

This holistic evaluation framework, combining direct user feedback with an in-depth analysis of each platform's capabilities and integration potential, guided my selection of the best AI chatbots for customer service. The chosen solutions promise to enhance operational efficiency and transform the customer experience, making them indispensable tools for businesses looking to thrive in the digital age.

As organizations prioritize enhancing customer experience, the latest trends in AI chatbot technology are propelled by the need to solve specific challenges in customer service operations. Below, we explore the key trends shaping the future of AI chatbots for customer service, each responding to distinct needs within the customer service domain.

  • Emotionally Intelligent Responses: Advanced natural language processing (NLP) capabilities enable chatbots to understand and respond to the emotional tone of customer inquiries. This evolution addresses the need for more empathetic and contextually relevant customer interactions, leading to higher satisfaction rates.
  • Voice-Enabled Conversational Interfaces: The integration of voice recognition allows users to interact with chatbots using natural speech, making technology more accessible. This also aligns with the increasing use of voice-assisted devices in everyday life.
  • AI Ethics and Bias Mitigation: Ethical AI practices and strategies are being implemented to counteract bias in chatbot interactions. This reflects a growing awareness of and response to the ethical implications of AI, ensuring chatbots treat all users fairly and without prejudice.
  • Hyper-Automation of Customer Service Processes: Beyond just simple queries, AI chatbots are being used to automate complex customer service workflows. This includes integrating with backend systems to perform tasks such as order processing, appointment scheduling, and issue resolution without human intervention.
  • Continuous Learning and Adaptation: Chatbots that can learn from each interaction and adapt their responses over time are in high demand. This feature ensures that the service provided by chatbots becomes more accurate and efficient, reflecting the need for continuous improvement in customer service quality.

These trends highlight a shift towards making AI chatbots for customer service more intelligent, emotionally aware, and integrated into the broader customer service ecosystem. For CX professionals, embracing these advancements means enhancing operational efficiency and providing a more engaging customer experience.

What is an AI Chatbot for Customer Service?

AI chatbots for customer service are digital tools that use an automated method of responding to customer requests. These tools are delivered via a cloud-based software platform, and connected to your customer-facing website. When a customer visits your website, the chatbot option would allow them to immediately "speak to" a representative by typing their request into a chat window. AI chatbots are programmed to provide customized support based on your organization's unique specifications.

Using an AI chatbot for your customer service operations can reduce your labor costs, speed up your response times, and allow you to offer support 24/7. Many also offer multilingual support and the ability to learn and adapt based on previous customer interactions, improving customer satisfaction levels. They can also help organizations scale their operations to meet rising demands, without needing to add more customer service agents to their workforce.

Features of an AI Chatbot for Customer Service

When it comes to enhancing customer service through technology, AI chatbots stand out as a pivotal innovation. They offer quick, consistent responses to customer queries, transforming the landscape of customer interaction. My focus on integrating AI chatbots into our customer service framework was guided by several key features, each aimed at reducing labor costs, accelerating response times, and providing round-the-clock support. Here’s what stood out to me:

  1. No-code chatbot builder: Software that requires minimal technical knowledge and includes an easy-to-install chat widget. This feature is crucial because it simplifies the setup process, making it possible for businesses of any size to deploy chatbots without the need for extensive IT resources.
  2. Natural Language Processing (NLP): The ability of a chatbot to understand and process human language naturally. NLP is fundamental in enabling chatbots to comprehend queries in various forms, ensuring interactions are as human-like as possible.
  3. Comprehensive knowledge database: A vast, accessible repository of information that the chatbot can use to answer queries. Having such a database at the chatbot's disposal means it can handle a wide range of customer questions, reducing the need for human intervention.
  4. Omnichannel compatibility: Support for multiple communication platforms such as live chat, SMS, and social media channels. This feature ensures customers can receive assistance through their preferred communication channel, enhancing the customer experience.
  5. Templates for conversation workflows: Pre-built templates for various customer interaction scenarios. These templates can dramatically speed up the deployment of chatbots and ensure consistency in responses, which is essential for maintaining a high level of customer service.
  6. Self-learning capabilities: The ability for chatbots to learn from interactions and improve over time. This feature is critical as it helps reduce the gap between human and machine understanding, leading to more accurate and helpful responses.
  7. Integration capabilities: Easy integration with existing customer relationship management (CRM) systems and databases. This ensures that chatbots can access and utilize customer data for personalized interactions, significantly improving the customer experience.
  8. Multilingual support: The ability to communicate with customers in multiple languages. This is particularly important for businesses operating in global markets, as it allows them to cater to a wider audience without compromising service quality.
  9. Sentiment analysis: The ability to gauge the customer's mood or sentiment during interactions. This feature allows chatbots to adjust their responses accordingly, providing a more empathetic and tailored customer service experience.
  10. User-friendly dashboard and analytics: Dashboards that provide insights into chatbot performance and customer interactions. This enables continuous improvement of the chatbot service by identifying areas of success and opportunities for enhancement.

Employing an AI chatbot equipped with these features has transformed how we approach customer service. It has not only streamlined our operations but also ensured that we can provide a consistently high level of service, anytime and anywhere. As we continue to explore the capabilities of AI in customer interaction, these features remain central to our strategy, driving efficiency and satisfaction in every conversation.

Benefits of AI Chatbots for Customer Service

In customer service, an AI chatbot is a valuable asset. By automating interactions and providing timely, intelligent responses, this technology has transformed the way companies approach customer service, as well as how customers interact with businesses. Here are five primary advantages of implementing this technology:

  • Instant Response: They deliver real-time responses to customer inquiries, significantly reducing the time customers spend waiting for answers and improving overall satisfaction.
  • Scalability: AI chatbots can handle an increasing number of inquiries without the need for additional resources, allowing businesses to efficiently manage spikes in customer service demands.
  • Cost Efficiency: By automating routine inquiries, chatbots reduce the workload on human agents and lower operational costs associated with customer support.
  • Personalized Experiences: AI chatbots can tailor conversations based on customer data, offering personalized recommendations and support that enhance the customer journey.
  • Reduction in Human Error: Automating responses to frequently asked questions and routine inquiries not only speeds up the service but also minimizes the chances of incorrect information being relayed to customers.

AI chatbots for customer service embody a significant leap toward creating more dynamic, efficient, and customer-centric business operations. With their ability to adapt, learn, and provide value at every touchpoint, these chatbots are not just a trend but a fundamental component of modern customer service strategies.

Costs & Pricing For AI Chatbots for Customer Service

The market for customer service AI chatbots offers a variety of plan options to cater to different business needs and budgets. Here, we break down the common plan options and their pricing to help you make an informed decision.

Plan TypeAverage PriceCommon Features
Free$0Basic chatbot functionalities, Limited interactions per month, Community support, Basic analytics
Starter$20 - $50/monthBasic plus: Customizable chatbot designs, More interactions per month, Email support
Professional$100 - $500/monthStarter plus: Integration capabilities, Advanced analytics, Priority support
Enterprise$1000+/monthProfessional plus: Custom development options, AI model training, 24/7 support, Unlimited interactions

Each plan caters to different stages of business growth, from those just exploring AI chatbot solutions to large enterprises requiring sophisticated, tailor-made functionalities. When selecting a plan, consider not only the current needs of your business but also future growth, ensuring that the chosen solution can scale as your customer service demands evolve.

FAQs: More on AI, Chatbots, and Customer Service

Here are the answers to the questions I receive most often about AI, the best AI chatbots, and customer service in general.

What is a chatbot service?

A chatbot service is any tool that provides services via pre-programmed chat messages. You can create chatbots to offer customer services, measure customer satisfaction, or for sales and marketing purposes.

Chatbots can help you automate your customer support processes. Essentially, when a customer contacts your organization, certain types of requests can be routed to an Artificial Intelligence chatbot rather than to human support agents. This means support agents can focus on the work that only they can do.

Using chatbots effectively can lead to improved customer engagement and satisfaction rates. You can use chatbots to address simple questions easily and assist customers in finding self-serve solutions. This can be a great way of improving the customer experience and increasing brand affinity.

Interested in learning more? Take a deeper dive into what a chatbot is and how they work.

How can you use an AI chatbot for customer service?

Here are a couple of ideas for how to use an AI chatbot to provide customer support and services:

  • Greeting customers when they land on your website.
  • Answering frequently asked questions about your products, services, prices, packages, and more.
  • Providing status updates and tracking information for customer orders.
  • Troubleshooting and technical support for both hardware and software, or digital products and services.
  • Scheduling appointments and reservations at your establishment or with your service providers.
  • Making personalized product recommendations based on customer preferences, purchase history, or browsing behavior.
  • Collecting customer feedback and conducting user research through surveys, polls, and feedback forms.

For a deeper dive into how you can use AI tools for customer service, I recommend reading our article on Customer Support Automation: Benefits, Challenges, and How-to.

What are the advantages of using AI chatbots for customer service?

Modern consumers don’t want to wait to receive answers to their questions. When they hit a blockade, customers simply move on to the next business. This is the main advantage of having AI customer service chatbots ready and able to answer basic customer queries or escalate issues 24/7.

AI-powered chatbots can also help your business with lead generation by collecting user’s contact information on the spot. The data collected by chatbots can be used as learning material for both the chatbot and the company.

We also have a summary of the pros and cons of customer service automation if you’re interested in learning more.

How do AI and machine-learning-based chatbots differ from rule-based chatbots?

Rule-based chatbots listen to keywords in a query and then search through available answers to respond to the query. Therefore, they will always answer queries with the keywords they understand, using the same predefined responses. On the other hand, machine-learning- and AI-based chatbots use human NLP and machine learning to constantly learn new ways of responding to queries.

If you’d like to dive deeper into this cutting-edge topic, read our beginner’s guide to sentiment analysis and natural language processing to get an understanding of the basics.

What is conversational AI, and how can it be used for customer service?

Conversational AI is the technology that enables computers or machines to understand, interpret, and respond to human language in a natural, conversational way. It combines various techniques including sentiment analysis and natural language processing (NLP), machine learning, and dialogue management to simulate human-like conversations.

Conversational AI has the potential to transform customer service by providing efficient, personalized, and scalable support. It can empower businesses to deliver exceptional customer experiences, reduce costs, and increase customer loyalty.

When it comes to customer service, conversational AI can be used to enhance the customer experience and streamline interactions between customers and reps. Here are just a few examples of how conversational AI can be used for customer service:

  • AI chatbots: The best customer service chatbots rely on conversational AI to answer customer FAQs, offer personalized recommendations, assist with product information, process transactions and returns, and more. It goes both ways in interpreting customer inquiries, and producing conversational responses.
  • Customer support automation: Conversational AI can help customers troubleshoot common issues, reset passwords, track orders, provide shipping information, and offer self-service options. This reduces the need for customers to wait for human support, saving time for both customers and businesses.
  • Natural language understanding: Conversational AI systems can analyze and understand customer inquiries and feedback in natural language, even when they are expressed in various ways. By accurately interpreting customer intent, sentiment, and context, you can better understand (and serve) your customers.

Interested in learning more? Read The Digitization of Customer Experience: Why it Matters, and How to Pull it Off.

How can you measure the ROI of using an AI-based chatbot for customer service?

You can measure the return on investment (ROI) of using an AI-based chatbot for customer service by evaluating the chatbot’s performance and impact on cost savings, customer satisfaction, and overall operational efficiency.

Here’s are several approaches you can use to measure the ROI of AI chatbot software:

Cost Savings:

  • Agent time: Calculate the amount of time customer service agents can save with AI chatbots answering their queries instead of them. Multiply the saved hours by the agents’ hourly wage to determine the cost savings.
  • Automation of tasks: Evaluate the number of tasks you can automate using a chatbot. Estimate the cost savings by considering the time and resources those tasks would have taken had they been conducted manually.

Customer Satisfaction:

  • Resolution time: Measure the average time it takes to resolve customer queries using a chatbot and compare it to your traditional customer resolution time.
  • Customer feedback: Set up automations to collect customer feedback directly after customers interact with your chatbot. You can then use this data to gauge their customer satisfaction levels and compare it to previous benchmarked data.

Operational Efficiency:

  • First-contact resolution: Track the percentage of queries your chatbot is able to resolve without needing to escalate to a human agent.
  • Volume handling: Evaluate the chatbot’s ability to handle high volumes of queries. Compare this to the volume of queries your human agents could handle, and how long that would take.
  • Conversion rates: Monitor the number of new leads that are generated and converted from customer interactions with the chatbot and compare these to your previous rates.

For more how-to recommendations for getting the best out of AI automation for customer service, read Customer Support Automation: Benefits, Challenges, and How-to.

Where can I find the best chatbot software reviews?

Here are some additional software reviews we’ve written about chatbots for customer service teams:

Use an AI-Powered Chatbot to Take Your Customer Services to the Next Level

Any business or organization that still believes in human interactions as the only approach to customer relationship management (CRM) probably hasn’t seen the numbers. It’s expected that up to 85% of customer interactions are already being managed without involving human agents.

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