Are you a business owner who wants to enhance the experience and engagement of users visiting your website and are interested in your services? How will you interact with them round-the-clock and offer fantastic customer service? You might be pondering about these questions. 

What if we tell you that there exists a solution to your challenge? Yes, with the advancement in technology, AI chatbots have emerged as a reliable and efficient solution to respond to user queries, enhance their satisfaction, and drive conversions.

Interested in AI chatbot development and want to create an AI chatbot for your website or social media platforms? If so, you have arrived at the right place. This article will provide you with in-depth information about developing a chatbot, its types, benefits, and much more to help you navigate the intricacies of developing AI chatbot solutions.

What is an AI chatbot?

AI chatbots are computer programs with the ability to indulge in human-like conversations with users. They act as a virtual assistant that is available 24/7 to provide customer support and engage users. They utilize innovative technologies like natural language processing and machine learning algorithms to understand user query context and provide relevant responses.

Many of you might have engaged with chatbots without even realizing it. Have you ever experienced that whenever you visit a website, a chat box appears with a simple text with the purpose of starting a conversation with you? Those are AI chatbots in action.

Businesses are increasingly adopting AI chatbot solutions to leverage their numerous benefits. According to Gartner, AI chatbots will become the primary source of customer support for all businesses within the next 5 years.

Types of Chatbots

Different chatbots serve different purposes. They enhance engagement in different ways. For example, some chatbots are intended for social sites to start a conversation with users, while others are for educational purposes. If you want to create a chatbot, you must know which chatbot will suit your requirements best. Here are the top 6 types of chatbots:

  1. Menu or button-based chatbots

One of the simplest types of chatbots is menu-based chatbots. These chatbots work like decision trees. These chatbots present multiple buttons in a menu to select. Users can select the most appropriate button for their needs. 

Once an option is selected, these chatbots may present another set of buttons to choose from to reach the final solution. They engage users and are best suited for straightforward/pre-defined user questions.

  1. Rules-based chatbots

Rule-based chatbots are one of the most widely used chatbots to engage users. These are best suited for businesses that already know what their customers are going to ask the chatbots. Their conversation flow is designed on conditional if/then logic. 

These chatbots work on conditions, including understanding keywords, word structure, word sequence etc. Once the user inputs, it tries to find the set conditions to trigger the most relevant pre-defined answer.

  1. AI-powered chatbots

In recent years, AI chatbots have started catching the eye of business owners. This is one of the most advanced types of chatbots. They don’t work on a pre-defined set of rules; they understand user context and query to provide the most suitable response. They leverage the power of machine learning algorithms and NLP to understand the user context.

What’s more, these chatbots have the tendency to self-learn and improve their responses based on past interactions. It significantly engages the users and enhances their satisfaction. If a user isn’t satisfied with its responses, it also redirects to the human customer support agent, who can handle the situation from there.

  1. Hybrid chatbots

Hybrid chatbots have the combined capabilities of rule-based chatbots and AI chatbots. When a user asks a simple question or FAQ, it tends to respond with the most appropriate answer using its rule-based abilities. However, if the question is complex, it leverages its AI capabilities to respond to users to enhance their satisfaction. 

Moreover, in a live chat, hybrid chatbots initiate the conversation. When things get complex, and the chatbot is unable to respond, a human agent from your team can intervene without interrupting the chat. If you want to leverage the benefits of AI and rule-based chatbots together, you must create an AI chatbot.

  1. Voice chatbots

Voice chatbots are one of the best tools that keep users engaged via voice. Users can command these chatbots to do something or provide some information, and they will do it in a fraction of the time. They leverage speech-to-text technology and vice versa to interact with the users. 

Moreover, the fusion of voice bots, AI, and NLP makes them more exciting to use. These chatbots are more convenient, enhance user satisfaction, and reduce wait time.

Benefits of AI Chatbots

You might be questioning yourself: what makes chatbots so important for businesses? The advantages of chatbots are numerous but depend on what type of chatbot you create. Here are some of the crucial benefits of AI chatbots to users as well as businesses:

  1. 24/7 Customer Support

Question yourself, “Can humans provide 24/7 support?” Your obvious answer will be No. But chatbots can provide round-the-clock support as they don’t feel tired and don’t need rest. 

Chatbots provide exceptional customer support by quickly answering user queries or sending them to the product page according to their requirements. It enhances their satisfaction and trust in your brand.

  1. Generate Leads

What if we tell you that AI chatbots are one of the best ways to generate more leads? Yes, you heard it right. 

They can start a conversation with your potential client and provide the necessary details and information about what you offer, why to prefer you, etc. Moreover, it asks them questions regarding their information and can redirect them to a human sales agent to collaborate seamlessly.

  1. Reduced Costs

In today’s world everyone looks for an AI solution that is innovative and cost-effective at the same time. Chatbots can work autonomously without the need for human intervention. 

Businesses can benefit from this AI chatbot feature, as they significantly cut the costs associated with manually handling tasks with the help of a huge number of employees. Moreover, chatbots can reduce the burden on employees by automating repetitive tasks like scheduling appointments.

  1. Better Customer Engagement

One of the most crucial reasons to create an AI chatbot is to enhance customer engagement. We all know that Gen-Z looks for shortcuts for everything. The same is the case when it comes to getting information. They prefer interacting with an AI chatbot rather than surfing the internet and reading long articles. 

AI chatbots act as virtual assistants and enhance engagement by providing round-the-clock support to users, resolving their queries, and providing personalized support to save users time and effort.

  1. Omnichannel Support

You can’t just rely on a single digital platform for your brand to nurture. You have to engage your audience on their preferred platforms to enhance their satisfaction. Whether it is your website, social media handles, or any other messaging platform, you must provide support on every platform.

Chatbot is the only solution that you need because it offers omnichannel support. They not only provide support but also match the brand voice across multiple platforms.

8 Key Steps to Create an AI Chatbot

We have in-depth information on what a chatbot is, the importance of developing an AI chatbot, and its benefits. Now, let’s discuss how you can create an AI chatbot by following easy and simple steps. Here is your step-by-step guide:

  1. Define the Purpose

The first step is to know what you want your chatbot to do, what is the purpose of creating an AI chatbot, what problems it will solve, and many more objectives defining questions. 

Once you have answers to these questions, you will have a clear picture of why you want to create an AI chatbot and will make it a success.

Moreover, you must have a clear understanding of your targeted audience and their needs. It will help you know which functionality and features are must-have for your chatbot to address their challenges.

  1. Choose the Suitable Platforms

Choosing the right platform to interact with potential customers is of the utmost importance. For this, you must have a clear understanding of the preferred channels of your targeted audience. It can be a website, app, messaging platform, or any other platform.

The selection of the platform depends on your budget and the type of chatbot. You also have the authority to integrate a single chatbot across multiple communication channels. The selection of the platform influences the tools and technologies required for the chatbot development process.

  1. Choose the Development ToolKit

The next step in the process of developing an AI chatbot is to choose the right development toolkit. The toolkit must be efficient to craft a cutting-edge chatbot that resonates with your requirements. Some most popular development frameworks or platforms are:

  • Google Dialogflow
  • Custom Development
  • IBM Watson
  • Microsoft Bot
  • Rasa

If you prefer chatbot frameworks, then you must code the functionality of chatbots using the libraries. On the other hand, chatbot platforms offer user-friendly builders for quick and efficient chatbot development.

  1. Design Conversation Flow

How your chatbot will respond to specific user queries is designed in the conversation flow of chatbots. It involves understanding user intents and mapping them to appropriate responses. Several platforms are available that allow you to design the chatbot conversation. This is one of the most important steps on which the success of your AI chatbot depends.

  1. Train Chatbot

Once you are done with designing the conversational flow, it is time to train your AI chatbot. You can train your chatbot on a vast dataset of sample conversations. This sample includes the questions that are mostly asked in your business niche and their relevant responses.

AI chatbot will learn this data and continue to improve its responses over time. The more the data samples for learning, the more accurate and efficient will be your AI chatbot.

  1. Test Chatbot

The process to create an AI chatbot is useless if you don’t test its functionality. Before the deployment of a chatbot for public use, you must test its capabilities and whether it’s working as intended. 

You can provide multiple inputs to test whether your chatbot provides a relevant and accurate response or does it needs fine-tuning. If your AI chatbot works abnormally after deployment, it can significantly have a bad impact on your business.

  1. Deploy and Collect User Feedback

Once you are satisfied with your chatbot performance and accuracy, you can deploy it on your chosen platforms. After a few interactions, let your chatbot send an automatic survey to users to fill out about how well it works, the accuracy of responses, and multiple more questions. 

Once they fill in the feedback, you will be able to know the pitfalls and concerning points about your chatbot performance.

  1. Monitor and Improve

The biggest mistake that one can make is to deploy and forget about the AI chatbot. If you want to get optimal results and enhance your business productivity, you must constantly monitor the performance of your AI chatbot.

Numerous tools are available that will provide you with analytics to have insights into the performance of your AI chatbot. This way, you can constantly improve user experience and make them your next customer.

How much does it cost to build a chatbot?

The cost of developing an AI chatbot depends on various crucial factors. These factors include the service provider you choose, chatbot complexity, features, whether you opt for ongoing maintenance, etc. Opting for a third party with extensive custom AI chatbot development experience can cost you from $10,000 to $200,000, depending on the above factors. 


In today’s digital era, having an AI chatbot solution is paramount. It offers numerous benefits not only to users but also the business owners. AI chatbot development helps your business reach its maximum potential while significantly enhancing the user experience.

This article provided you with in-depth information on how to create an AI chatbot, its benefits, and the cost of building an AI chatbot. Building an AI chatbot may seem a complex task to do, but you can follow the steps mentioned above to create your own AI chatbot or leverage the expertise of a reliable AI service provider.