There are two main types of chatbots that enterprises can use: transactional chatbots and conversational chatbots. The main difference between them is the overall level of complexity.
Transactional Chatbots
A transactional chatbot, also known as a task-based or declarative chatbot, is a single-purpose chatbot that focuses on performing or automating a task or function. It is designed to provide a fixed set of options for the user to choose from based on the action they want to perform or the problem they want to solve. After the user makes a choice, the chatbot continues to provide available options to guide them through the process until the user's question is answered or the problem is solved, or until the user is referred to a human agent.
Transactional chatbots use natural language processing to understand the intent of user inquiries and generate conversational, automated responses. Interactions with transactional chatbots are trained based on structured data, so transactional chatbots can be very helpful for businesses that know in advance what common actions or questions their customers may need help with.
For example, restaurants, delivery companies, and banks use transactional chatbots to handle common problems, such as questions about business hours, or to help customers with simple transactions. Transactional chatbots are the most commonly used type of chatbot, so there are a variety of related examples.
Conversational Chatbots
Conversational chatbots are more complex and interactive chatbots that use natural language processing to achieve more personalized interactions. These conversational bots use conversational AI, natural language processing, and access to knowledge databases and other information to detect nuances in a user's questions and responses, and give dynamic, relevant answers in a human-like manner.
Conversational chatbots, often called virtual or digital assistants, also use predictive intelligence and analytics to deliver a personalized experience based on each user's profile and prior behavior. Over time, this type of chatbot can learn about user preferences and use this learning to provide recommendations and anticipate needs.
Conversational chatbots are widely used by e-commerce companies, online services, social platforms, businesses with advanced software-as-a-service (SaaS) tools, and business-to-business (B2B) companies that provide enterprise solutions.
