What is an AI Chatbot: A Comprehensive Guide to Chatbot Software & Features

Have you ever gotten stuck on a website, desperately searching for an answer to a simple question, only to find endless scroll buttons and unhelpful menus?  

That’s where an AI chatbot comes in – virtual lifesavers that can transform online interactions.

Having worked in the industry for years, I’ve been closely associated with AI chatbot software and have seen this technology evolve from clunky script-based interactions to highly sophisticated systems that can hold natural conversations.  

In this comprehensive guide, I will share everything I’ve learned, including various AI chatbot tools, their functionalities, benefits, and how to implement them in your operations effectively.

Let’s get started!

What is an AI Chatbot?

An AI chatbot is a software application that uses artificial intelligence to simulate conversations with human users. These chatbots are programmed to understand and respond to text or voice inputs, making them useful in customer service, lead generation, entertainment, and personal assistants. 

Besides, these chatbots have received a nod in their favor from the users, too. For instance, over 80% of customers who have used chatbots report the experience as positive.

A real-life example is the chatbot “Eva” used by HDFC Bank in India, which handles millions of customer queries effectively. AI chatbots are integral to the best AI chatbot platforms like Facebook  Messenger and Slack, where they automate responses and assist in managing communications, showcasing how they can streamline interactions and enhance user experience across various sectors.

Read More: What is a Chatbot? A comprehensive tool for customer engagement

Here’s a sneak peek of some of the best AI chatbot tools available in the market currently:

Let’s check out all the details of these tools inside-out as you read along.

10 Best AI Chatbot Software 2024

Here is a list of some of the best and most popular AI chatbot software that I’ve used in the last few years. Check out their pricing and features to get a better idea:

1. ProProfs Chat

Best for 24/7 Delightful Customer Support With AI Chatbots

I’ve found that ProProfs Chat is particularly effective for providing 24/7 delightful customer support through its AI chatbots. The free AI chatbot software offers a comprehensive suite of features that enable businesses to engage with customers at any time without the need for constant human oversight. 

The best part is that anyone can get started without any coding skills. You can build your own bot in minutes using pre-designed chatbot templates or train the bot using your own data. 

The AI chatbots are adept at handling a wide range of queries, from simple FAQs to more complex support requests. 

What stands out about ProProfs Chat is its seamless integration with CRM, marketing, and e-commerce tools. For instance, you can connect ProProfs Chat with Salesforce, Mailchimp, Magento, Shopify, and other tools to delight your customers. 

What You Will Like

• Automated greetings and canned responses to help businesses accelerate support success.
• A comprehensive analytics dashboard is available to monitor the performance of the chatbots.
• Intelligent chat routing support so that the chats can be transferred easily to the most expert personnel. 
• Support for 60+ global languages helps cater to a global customer base.
• Proactive chat triggers engage visitors automatically, improving interaction rates.
• Allows you to share the chat link across social media platforms or in your Gmail signature and connect with your customers in a secure environment.

What You May Not Like

• Although the free plan offers all premium features, it’s limited to a single operator.
• The AI chatbots may experience updates with time. 

Cost: Forever free for a single operator. Paid plan starts at $19.99/operator/month. 

2. Drift Chatbot

Best for Sales Assistance on B2B Websites

Drift Chatbot shines as a tool for sales assistance on B2B websites. The AI-powered capabilities of Drift are designed to engage website visitors with real-time, personalized conversations that can lead to improved sales leads. The bot is intuitive, allowing for automated booking of meetings and providing instant responses to pre-sales questions.

 In my usage, Drift has effectively identified and targeted high-value leads, enabling sales teams to prioritize their efforts more efficiently. 

I love its direct integration with sales and marketing tools, where every interaction with a potential customer is captured and utilized for future engagements.

What You Will Like

• It captures leads effectively through real-time interactions with website visitors.
• Drift integrates well with sales and marketing tools, streamlining various workflows.
• Users can customize chat flows to suit specific business processes, enhancing flexibility.
• The tool increases engagement through targeted messaging based on visitor behavior.
• Drift supports both mobile and desktop platforms, ensuring accessibility.

What You May Not Like

• The tool is primarily suited for B2B environments and may not be ideal for all types of businesses.
• Basic plans have limited third-party integrations.

Cost: Starts at $2,500/month. Billed annually. 

3. Intercom

Best for Omnichannel Chat With Messenger and App

Intercom is excellent for businesses looking for an omnichannel chat solution that integrates seamlessly with messenger and app interfaces. My experience with Intercom has been that it not only provides robust chat capabilities but also connects various communication channels into a single, streamlined platform. 

This feature is invaluable as it allows for consistent and continuous conversation with customers across different touchpoints, enhancing the overall user experience. 

The tool’s flexibility and the ability to integrate with various third-party apps and services make it a top choice for maintaining an effective customer communication strategy.

What You Will Like

• In-app and website messengers are customizable, enhancing the overall user experience.
• Automated workflows streamline customer interactions, increasing efficiency.
• The robust API facilitates custom integrations, expanding functionality.
• Performance tracking is available in real-time, providing immediate feedback.
• The platform allows for targeted communications through user segmentation.

What You May Not Like

• Resource intensity may affect website load times, potentially deterring users.
• The initial setup and customization require a significant investment of time and resources.

Cost: Starts at $39/month.

4. Chatfuel

Best for Small and Medium-Sized Enterprises

For small and medium-sized enterprises, Chatfuel offers an accessible and powerful platform to build and deploy chatbots. I’ve appreciated its straightforward interface and the drag-and-drop builder that makes creating sophisticated bots without needing extensive coding knowledge a reality. 

The platform supports integration with major social media platforms like Facebook, enabling businesses to automate interactions and engage with a larger audience. 

The results, from my perspective, have been quite impressive, with noticeable improvements in engagement rates and customer satisfaction.

What You Will Like

• The platform does not require coding skills for setting up chatbots, making it accessible.
• A visual bot builder provides an intuitive user interface for creating chat flows.
• The AI capabilities of Chatfuel allow it to learn from interactions and enhance responses.
• Real-time analytics are available to monitor the effectiveness of chatbots and user engagement.
• An active community and support are accessible for troubleshooting and assistance.

What You May Not Like

• Advanced functionality customization is limited, which may not suit all users
• During peak times, support response times may lag, impacting user satisfaction.

Cost: Starts at $15/month.

5. Landbot.io

Best for Creating Interactive Landing Pages

Landbot.io is designed to create interactive landing pages with an emphasis on conversational user interfaces. I’ve used Landbot.io to design landing pages that not only capture attention but also drive higher engagement through interactive dialogues. 

The tool’s strength lies in its ability to create a personalized journey for each visitor, enhancing their experience and increasing the likelihood of conversion. 

The no-code setup and the versatility of the platform allow for quick adjustments based on user interactions and feedback.

What You Will Like

• The platform offers a high degree of customization to ensure brand alignment.
• Landbot.io integrates seamlessly with analytics services to measure chatbot effectiveness.
• It supports embedding on multiple platforms, including websites and social media.
• Features such as A/B testing are offered to optimize user interactions for better outcomes.
• API access is provided for deeper integrations, enhancing the tool’s utility.

What You May Not Like

• Some technical knowledge may be necessary to utilize advanced features fully.
• The limited number of templates can restrict creative options.

Cost: Starts at €32/month. Billed yearly.

6. Pandorabots

Best for Personalized Customer Interactions

Pandorabots excels in creating personalized customer interactions through sophisticated, AI-driven chatbots. My experience has shown that Pandorabots can simulate human-like interactions, making the customer service process more engaging for users. 

The platform allows for deep customization, which means I can craft the personality and responses of the bot to align closely with the brand’s identity. This customization capability is especially useful in industries where customer engagement and retention are driven by personalized communication.

What You Will Like

• The platform supports AIML, allowing deep customization of chatbot behaviors.
• It is scalable and can handle large volumes of conversations simultaneously.
• Detailed analytics are provided to monitor the performance of chatbots and customer satisfaction.
• Flexible deployment options are available, including on-premise and cloud-based solutions.
• A vibrant developer community offers support and resources for users.

What You May Not Like

• Resource-intensive setup and maintenance can be a significant investment.
• Costs can escalate with advanced features and extensive customization.

Cost:  Starts at $19/month. 

7. Tidio

Best for E-Commerce Businesses

Tidio is a standout tool for e-commerce businesses looking to enhance their customer service and sales strategy. The AI chatbot app, powered by Tidio, has significantly automated customer interactions on several e-commerce platforms I’ve worked with, from addressing basic inquiries to providing recommendations based on user behavior and preferences. 

The integration of Tidio with e-commerce systems like Shopify and WooCommerce makes it a seamless addition to any online store, aiming to boost sales and improve customer experience.

What You Will Like

• Specialized tools, such as automated cart recovery options, which are highly beneficial for e-stores.
• AI-enhanced product recommendations that help boost sales effectively.
• The setup is straightforward, and the interface is user-friendly, making it accessible.
• Real-time visitor tracking enables tailored interactions, improving engagement.
• A robust mobile app extends the functionality to mobile devices, increasing accessibility.

What You May Not Like

• Advanced features are only available in higher-tier plans, which may be costly.
• Customization options in the free version are limited, reducing flexibility.

Cost:  Starts at $32.50/month. Billed annually.

8.  ManyChat

Best for Chat Automation on Social Media

In my extensive use of ManyChat, I have found it incredibly effective for automating chat interactions on social media platforms. Utilizing its intuitive design tools, I’ve been able to craft dynamic bots that automate everything from greeting newcomers to providing detailed product information and handling transactions directly within platforms like Facebook Messenger. 

The ability to segment users based on their responses and interactions has allowed me to tailor conversations to individual needs, enhancing user engagement. 

Through ManyChat, I’ve managed to not only scale my outreach efforts but also significantly boost my engagement rates without needing additional resources. 

What You Will Like

• An extensive template library that can help you create and customize chatbots
• Comes with a visual flow builder that allows for the intuitive creation of chat flows, improving user experience.
• The pricing is affordable, making it accessible to small businesses.
• Robust segmentation and analytics, which improve the effectiveness of marketing strategies.
• Customer support is quite responsive, providing timely assistance when needed.

What You May Not Like

• The user interface can be overwhelming for beginners, potentially complicating the learning process.
• High dependence on third-party platform policies, which may pose risks if those policies change.

Cost: Starts at $15/month. 

9. Zendesk

Best for Zendesk Users

My personal experience with integrating Zendesk Chat into our existing Zendesk suite has been transformative. The real-time chat capabilities have enabled our customer service team to address issues and answer queries with unprecedented speed. 

What impresses me the most is how seamlessly it fits into our overall customer service strategy, allowing agents to manage multiple chats efficiently, which, in turn, reduces customer wait times significantly. 

The analytics feature of Zendesk Chat is particularly useful, providing deep insights into customer interactions that help us continually refine our approach. 

What You Will Like

• AI-powered suggestions to agents improve the quality of support provided.
• The platform offers extensive customization options to match specific business needs.
• It scales well to accommodate the demands of growing customer service departments.
• Zendesk supports multichannel communication, including email, chat, and voice.
• Reliable customer support and active community forums are available for assistance.

What You May Not Like

• The functionality is primarily beneficial for existing Zendesk users and may not be suitable for others.
• The complexity of features may require additional training for effective use.

Cost: Starts at $55/month. Billed annually. 

10. ChatBot.com 

Best for Customizable Chatbot Templates

Having implemented several chatbots using ChatBot.com, I am impressed by the platform’s versatility and user-friendliness. The customizable templates are a huge advantage, as they allow me to quickly deploy bots tailored to specific aspects of our business, from customer support to lead generation. 

The drag-and-drop interface is so intuitive that even those on my team with little to no coding skills can design complex bots capable of handling a variety of tasks. 

Integrating these bots across our websites and social media channels has significantly lifted our customer interaction rates. With ChatBot.com, I’ve managed to automate complex interactions that previously required manual handling.

What You Will Like

• The platform’s automation capabilities adapt and improve through machine learning, enhancing effectiveness.
• Integration with major social media platforms like Facebook and Instagram expands the tool’s functionality and reach.
• Specialized chatbots are available for HR tasks, helping in areas like recruitment, employee onboarding, and internal inquiries. 
• Uses sentiment analysis to gauge the mood of the conversation and adjust responses accordingly. 
• An active user community and strong support resources are available for assistance.

What You May Not Like

• Some templates may require significant tweaking to fit specific use cases perfectly.
• Advanced customization options can be complex and require technical knowledge.

Cost: Starts at $52/month. Billed annually. 

How do AI Chatbots work?

AI chatbots simulate a conversation with a human user through text or voice interactions. 

Here’s a breakdown of how they generally operate:

1. Input Interpretation: When you interact with an AI chatbot, the system receives your input (whether text or voice). In the case of voice inputs, the audio is first converted into text using speech recognition technology.
2. Natural Language Understanding (NLU): The chatbot processes the text to understand the user’s intent and extract relevant entities (like names, dates, or specific commands). This step involves parsing the language to comprehend the user’s request.
3. Processing: Once the intent is identified, the chatbot formulates a response. This can involve several back-end processes:
   • Dialogue Management: Determines the flow of the conversation based on the context and user’s intent.
   • Task Handling: For functional chatbots, this step might involve fetching information from databases, interfacing with other applications, or performing specific tasks like booking tickets or setting reminders.

4. Natural Language Generation (NLG): After processing the information and determining the appropriate response, the chatbot converts this response back into natural language. This step is crucial as it crafts the responses to be understandable and human-like.
5. Output: Finally, the generated text is delivered to the user, completing the interaction loop. If the conversation is voice-based, the text might be converted into speech using text-to-speech technology before being presented to the user.

AI chatbots are powered by machine learning models and algorithms, which allow them to improve over time. They learn from each interaction and can be trained on large datasets of conversational texts to understand and mimic human conversational patterns more effectively. 

What is an AI Chatbot used for?

AI chatbots are versatile tools primarily used to automate customer service, enhance user engagement, and streamline business processes. They handle inquiries efficiently, providing immediate responses to common questions 24/7, which can significantly improve customer satisfaction and reduce operational costs. 

For example, a report from IBM suggests that chatbots can answer 80% of routine questions, cutting response times and freeing human agents to manage more complex issues.

Moreover, chatbots are integral in e-commerce for guiding customers through purchase processes, recommending products, and managing after-sales support. 

In the healthcare sector, AI chatbots like Babylon Health’s service can triage symptoms and offer health advice, potentially reducing unnecessary doctor visits. 

As their capabilities evolve, AI chatbots are becoming indispensable across various industries, from finance to education, demonstrating their growing importance in digital interaction and business operations.

Who uses AI Chatbots?

AI chatbots are used by a wide range of individuals and organizations across various sectors. Here are some of the primary users:

1. Businesses and Customer Service Teams: Many companies integrate AI chatbots into their customer service operations to handle inquiries, provide 24/7 support, and improve customer experience. Chatbots can manage simple requests like tracking an order, answering FAQs, and scheduling appointments, allowing human agents to focus on more complex issues.

2. Healthcare Providers: In the healthcare sector, chatbots are used for several purposes, such as scheduling appointments, providing basic healthcare information, reminding patients about their medication, and even helping in mental health support as virtual therapists.

Explore: Use Cases of Healthcare Chatbots: A Detailed Guide 2024

3. E-commerce Platforms: E-commerce businesses use chatbots to assist customers in finding products, making purchase decisions, handling returns and exchanges, and providing recommendations based on previous purchases.

4. Banking and Finance: Financial institutions employ chatbots for a variety of services, including account management, transaction inquiries, financial advice, and immediate responses to customer queries.
5. Education: Educational institutions and e-learning platforms use chatbots to assist with administrative tasks, student queries, course recommendations, and providing personalized learning experiences.
6. Travel and Hospitality: Chatbots in this sector help users book flights and accommodations, provide travel advice, manage check-ins, and serve as local guides.
7. HR and Recruitment: Companies also use chatbots to streamline the recruitment process, answer FAQs about job openings, and even conduct initial screening interviews.
8. Entertainment and Media: In this field, chatbots are used to engage users, provide content recommendations, and participate in interactive storytelling or games.

The integration of AI chatbots across these diverse sectors highlights their versatility and the broadening scope of applications designed to enhance efficiency, customer satisfaction, and accessibility.

Also Read: Top 10 Free AI Chatbot Software in 2024 [With Pros & Cons]

Top 5 Features of AI Chatbots

Here are some top features of AI chatbots that you should know:

1. Natural Language Processing (NLP)

Natural Language Processing enables chatbots to understand and interpret human language, allowing them to respond in a way that feels natural and intuitive to users. NLP incorporates machine learning algorithms to improve understanding over time based on interactions.

For example, Chatbots like ChatGPT or customer service bots on retail websites use NLP to handle queries ranging from product recommendations to troubleshooting.

2. Machine Learning and Adaptability

AI chatbots learn from each interaction to refine their algorithms and improve their responses. The adaptability feature means that the more the chatbot is used, the better it becomes at predicting and solving user queries.

For example, E-commerce chatbots often adapt by remembering previous interactions with customers to offer personalized shopping advice.

Read: 14 Convincing Benefits of Live Chat for eCommerce 

3. Integration Capabilities

Modern AI chatbots can be integrated with a variety of platforms and databases, such as CRM systems, social media platforms, and enterprise resource planning systems, facilitating seamless interaction across different channels.

For example, Chatbots integrated into CRM systems can provide real-time customer data to support agents, enhancing customer interaction quality.

4. Scalability

AI chatbots can handle thousands of interactions simultaneously, making them highly scalable. This is particularly beneficial for businesses that experience large volumes of queries and require consistent response quality.

For example, during high-traffic events like Black Friday, AI chatbots in retail can manage increased customer interaction without the need for proportional increases in human staff.

5. Proactive Engagement

Proactive engagement allows AI chatbots to initiate conversations with users based on specific triggers or behaviors rather than waiting for the user to start an interaction. This capability is useful for guiding users through complex websites, alerting them to promotions, or providing timely support.

For example, a financial services chatbot might proactively notify a customer about an unusual transaction, ask if they need assistance with recent purchases, or remind them of upcoming bill payments, enhancing the customer service experience.

Do Not Miss: 12 Essential Chatbot Features to Consider in 2024 

Top 5 Benefits of AI Chatbots

AI chatbots offer numerous benefits helping businesses enhance customer interactions, streamline operations, and improve overall efficiency. 

Here are the top five benefits of AI chatbots:

• 24/7 Customer Service: AI chatbots can provide round-the-clock customer support, addressing common inquiries and resolving issues at any time of the day without the need for human intervention. This ensures that customers receive immediate assistance, improving overall customer satisfaction.
• Cost Efficiency: By automating routine interactions, chatbots can significantly reduce labor costs. They handle multiple customers simultaneously, which reduces the need for a large customer service team and lowers operational costs.
• Improved Customer Engagement: Chatbots can interact with customers in a conversational manner, using personalized communication based on the customer’s previous interactions and preferences. This personalized approach can enhance the customer experience and boost engagement.
• Data Collection and Analysis: Chatbots are excellent at collecting data from user interactions. This data can be analyzed to gain insights into customer preferences, behaviors, and feedback, which can be used to improve services, tailor marketing strategies, and enhance product offerings.
• Handling of Complex Queries: Modern AI chatbots are increasingly capable of handling more complex queries beyond simple FAQ-style interactions. They use natural language processing (NLP) and machine learning to understand context, make decisions, and learn from each interaction. This allows them to provide more accurate and contextually relevant responses, improving the overall quality of customer service.

Read More: Top 15 Benefits of Chatbots for Your Business & Customer in 2024 

How to Choose the Best AI Chatbot

Choosing the best AI chatbot may require some considerations. Here is a step-by-step guide to help you pick the right AI chatbot tool:

1. Define Your Requirements:
   • Purpose: Identify why you need a chatbot—customer support, sales, internal communications, etc.
   • Interactions: Consider the complexity of interactions needed. Do you require simple FAQ responses or more sophisticated, context-aware conversations?
   • Platforms: Determine where the chatbot needs to operate (e.g., websites, social media platforms, internal communication tools).
2. Evaluate AI Capabilities:
   • Natural Language Processing (NLP): Look for chatbots with robust NLP capabilities to understand and generate human-like responses.
   • Learning and Adaptation: Assess whether the chatbot can learn from interactions and improve over time.
   • Multilingual Support: If you need support in multiple languages, ensure the chatbot can handle this.
3. Check Integration Options:
   • Existing Tools: The chatbot should integrate seamlessly with your existing business tools (CRM software, databases, etc.).
   • APIs and SDKs: The availability of APIs or SDKs determines how well you can customize and integrate the chatbot into your systems.
4. Assess Customization and Scalability:
   • Customization: Ensure you can tailor the chatbot’s behavior, responses, and appearance to fit your brand.
   • Scalability: The chatbot should be able to handle increasing volumes of interactions as your needs grow.
5. Usability and Support:
   • Ease of Use: The platform for managing the chatbot should be user-friendly.
   • Support and Updates: Consider the level of customer support provided and how frequently the software is updated with new features or improvements.
6. Review Compliance and Security:
   • Data Privacy: Ensure the chatbot complies with relevant data protection regulations (e.g., GDPR, HIPAA).
   • Security: Evaluate the security measures in place to protect data and interactions.
7. Consider Costs:
   • Pricing Structure: Understand the pricing model, whether it is subscription-based, pay-per-interaction, etc.
   • Total Cost of Ownership: Consider not just the initial costs but also ongoing operational costs, including maintenance and updates.
8. Trial and Feedback:
   • Testing: If possible, test the chatbot before committing to ensure it meets your expectations.
   • Feedback: Gather feedback from users and stakeholders and use it to assess whether the chatbot fits your needs.
9. Research and Reviews:
   • Vendor Reputation: Research the reputation of the chatbot provider. Look for reviews, case studies, and testimonials.
   • Community and Support: Check if there’s a community around the chatbot platform for additional support and shared knowledge.

Read: 21 Best Free Live Chat Software for Websites in 2024 

What are the Latest Trends in Chatbot Software?

Recent trends in chatbot software indicate a significant evolution in capabilities and applications. Here are some of the key developments:

• Human-Like Interactions: Chatbots are becoming more sophisticated in mimicking human conversations. Through the integration of natural language processing (NLP) and machine learning, chatbots can understand and respond to user queries with greater accuracy and context awareness. This shift aims to make interactions with chatbots as seamless as engaging with human agents​​.
• Voice Bots and Multimodal Interactions: There is a growing trend towards voice-driven interactions, with predictions that over half of all searches will be voice-based soon​ (REVE Chat)​. Additionally, chatbots are expanding beyond text to include multimodal interactions, integrating videos, sounds, and images, which can enhance user engagement and utility, especially in troubleshooting scenarios​.

• Enhanced Integration: Chatbots are increasingly capable of integrating with various digital ecosystems and platforms. This includes health apps, e-commerce platforms, and social media, enabling them to offer more personalized and context-aware services​​.

• Predictive Analytics and Customer Insights: Leveraging AI, chatbots are becoming adept at predictive analytics, helping businesses anticipate customer needs and behaviors. This capability enables more proactive and personalized customer service​​.
• Expansion in Messaging Platforms: Messaging platforms continue to be a major driver for chatbot integration, facilitating conversational commerce and enhancing customer service and engagement. The popularity of platforms like WhatsApp for business interactions underscores the trend towards more integrated and user-friendly chatbot services​​.
• AI-Powered Efficiency: Businesses report substantial efficiencies and cost savings by employing AI chatbots. For instance, they can significantly reduce the cost per customer interaction and save time on customer inquiries, demonstrating a robust ROI from chatbot deployment​.

These trends showcase how chatbots are evolving from simple automated responders to complex AI-driven systems capable of sophisticated interactions and integrations.

Read More: 17 Live Chat Best Practices to Deliver Delightful Customer Service 

Case Studies

The MilitaryCruiseDeals Case

Know how MilitaryCruiseDeals used ProProfs Chat, and it proved to be an excellent solution for communicating with overseas clients who cannot call them.  Read Full Story

The United Performance Metals (UPM) Case

Know how ProProfs Chat helped United Performance Metals (UPM) to connect with prospects and allowed them to increase their sales online. Also, learn how this tool helped them to answer questions live and increase online orders.Read Full Story

Redefining Future Interactions with AI Chatbot Tools

AI chatbots have emerged as indispensable tools that streamline interactions, enhance customer service, and automate responses efficiently. These intelligent systems understand and process user requests and learn and adapt over time, offering increasingly personalized experiences. 

They represent a significant leap forward in how businesses engage with their customers, offering real-time solutions and support around the clock. 

Among the various options available, I like the features of the ProProfs’ AI Chatbot tool that provides unparalleled customization, ease of integration, and robust analytics to transform your customer interaction landscape. This can surely help your business perform better.