Demystifying the Working, Types, Benefits and Limitations of Chatbots

Abstract

A chatbot is one of the most innovative tools for interaction between humans and machines. It simulates human behaviour and interacts with a user in natural language to provide required information, services, thus enhancing the user experience. An increasing number of organisations are utilising chatbots to offer better services to users in real time to improve user satisfaction, streamline the user journey, and provide user-centric support. However, this requires building specific chatbots for specific services, which leads to variational designs of chatbots based on their application areas.This paper aims to demystify fundamentals of a chatbot including its working, types, benefits and limitations. It will mainly focus on two main categories of chatbots rule-based and AI-based chatbots, and explain all the aforementioned facts as well their comparative analysis to simplify the chatbot topic in general.