CHATBOT FOR BUSINESS ORGANISATION

CHATBOT IN BUSINESS ORGANISATION

ABSTRACT: Abst ra c t

The cost of today's employee education is extensive, but also dynamic due to the global
challenges of business that encompasses each activity. The special expression of the aforementioned
is outlined in the elements of customer support provided to visitors or potential clients through the
websites of companies or other institutions. In order to somewhat bridge the gap of new training and
training of customer support, companies are forced to seek new models of communication with users
and resolve their inquiries as soon as possible. As a solution, the implementation of chatbots in
websites is imposed as the first phase of communication with users and the resolution of simple
queries by users. Full business automation is a constant focus of corporations precisely because of
the global market and increasingly demanding clients. The last year has been marked by the
increasing availability of artificial intelligence, advanced computing, or big data processing. The
orientation of this technology towards customer satisfaction, and through the use of advantages of
chatbot as a "first line" of conversation with visitors enables unprecedented functionality. Through
research of available literature and publicly available examples of good practice, the advantages, and
disadvantages of implementing chatbots as a substitute for customer support will be observed.

Keywords: modern business, chatbot, information and communication technology, digitization

definitely here to stay and with new AI (artificial

intelligence) benefits is getting more and more available
1. Introduction to any company. Special care is considered in terms of
human related work and switching repetitive tasks to
In the current landscape of the global market, rapid and information technology. Global popularity of Chat GPT
swift transformations are reshaping both corporate and (OpenAI, L.L.C., 2023.) pushed such technology even
personal spheres. This dynamic environment leaves faster and made thinking about practical implementations
minimal margin for errors or lack of readiness in on highest rank in numerous businesses.
responding to the fluid and evolving conditions. As a
result, the imperative to adapt to these changes swiftly
and adeptly is paramount for success. Companies across
all sectors are facing the impact of global crises and An exemplary IT solution, widely recognized for its
challenges (post-Covid, inflation, war situation in potential to enhance employee productivity, is the
Ukraine), necessitating strategic responses to maintain implementation of a chatbot. By automating routine tasks
resilience and competitiveness. Cost optimization and and providing efficient customer support, chatbots can
efficient resource allocation, particularly concerning liberate valuable time for employees, enabling them to
human capital, have become imperative to ensure focus on more strategic and value-added activities. It is
sustained operations and growth. Moreover, the quite noticeable how chatbot popularity is growing in
recruitment and retention of skilled employees present previous years as shown in Figure 1. The increased
additional complexities in this dynamic landscape. availability and utilization of chatbots can be primarily
attributed to their heightened adaptability and simplified
Amidst these challenges, enterprises must continuously implementation processes. Furthermore, a significant
innovate, embrace digital transformation, and cultivate a reduction in the costs associated with their development
corporate culture that fosters adaptability and agility. and deployment has played a pivotal role in their
Utilizing technology, data-driven insights, and market widespread adoption. These combined factors have
intelligence is essential to predict customer needs, react synergistically contributed to the pervasive integration of
to emerging trends, and stay competitive. Embracing chatbot technology across diverse sectors (Dashly Ltd.,
sustainability practices and incorporating ESG 2023). As a result, chatbots have emerged as versatile
(Environmental, Social and Governance) considerations tools with the potential to revolutionize interactions
can also enhance a company's reputation and between users and automated systems.
attractiveness to investors and consumers in an Figure 1. Google search frequency for "chatbot use"
increasingly conscious market. keyword

In this ever-changing global market, strategic decision-

making, proactive risk management, and a relentless
commitment to excellence are essential for organizations
to navigate uncertainties and thrive in the face of
multifaceted challenges. Mentioned digital approach is
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CHATBOT FOR BUSINESS ORGANISATION

o Train machine learning models,

improve natural language
understanding (NLU), and optimize
chatbot performance.
• IT Support Team:
o Manage chatbot infrastructure,
troubleshoot issues, and ensure
uptime and security.

3. Customers
• End-Users:
o Interact directly with the chatbot for
Source: Author work with Google trends tool (Google customer support, product inquiries,
Inc., 2023.) or other services.
o Their satisfaction and feedback are
critical to the chatbot's success.
2. Key Stakeholders
Key stakeholders in implementing chatbots within a
4. Customer Support Teams
business organization include individuals or groups
directly or indirectly impacted by the chatbot's • Customer Service Representatives:
development, deployment, and usage. Here's a breakdown o Work alongside the chatbot to handle
of these stakeholders: more complex queries that cannot be
automated.
o Provide insights on frequent customer
issues to enhance chatbot training.

5. Marketing and Sales Teams

• Marketers:
o Use chatbots for lead generation,
personalized promotions, and
customer engagement.
o Ensure the chatbot aligns with brand
voice and messaging.
• Sales Teams:
o Leverage chatbots for qualifying
leads and streamlining the sales
funnel.

6. Human Resources (if used internally)

• HR Teams:
o Utilize chatbots for automating
1. Business Leadership recruitment processes, onboarding,
• Executives (CEOs, CTOs, COOs): and employee queries.
o Oversee the overall goals and • Employees:
alignment of the chatbot with o Interact with the chatbot for accessing
business objectives. internal information or support.
o Focus on ROI, cost reduction, and
improved customer experience. 7. Vendors and Technology Partners
• Product Managers: • Third-Party Providers:
o Ensure the chatbot aligns with o Provide chatbot platforms (e.g.,
business priorities and customer Dialogflow, Rasa, ChatGPT API) or
needs. integrations like CRM tools.
o Define goals, scope, and key • Consultants:
performance indicators (KPIs). o Advise on chatbot strategy, design,
and best practices.
2. Technology Team
• Developers/Engineers: 8. Compliance and Legal Teams
o Build, test, and maintain the chatbot • Legal Advisors:
using programming and AI o Ensure the chatbot complies with data
frameworks. protection laws (e.g., GDPR, HIPAA)
• Data Scientists/AI Specialists: and other regulations.

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• Risk Management Teams: The historical development of chatbots is traced, starting

o Evaluate and mitigate risks associated from early chatbot pioneers like ELIZA and PARRY to
with chatbot usage. modern examples like Siri, Google Assistant, and
ChatGPT. The evolution of chatbot technology
9. Project Management Team demonstrates their transformation from basic pattern
matching to sophisticated language models with potential
• Project Managers: applications in diverse fields.
o Coordinate cross-departmental
collaboration and ensure the chatbot
project stays on track in terms of Figure 2. Evolution of Chatbots for 70 years
timelines and budgets.

10. Quality Assurance (QA) Teams

• QA Analysts:
o Test the chatbot for performance,
usability, and accuracy before
deployment.

11. Analytics and Business Intelligence Teams

• Data Analysts:
o Monitor chatbot performance metrics
such as user satisfaction, resolution
rate, and usage trends.
o Provide insights for continuous
improvement.

12. External Stakeholders Source: Capacity (2023, June 15)

• Suppliers/Vendors:
According to Nesterchuk et al. (2021), the primary
o May interact with chatbots for order
difference between gastronomic and other forms of
management or other transactional
tourism is the fact that this type of tourism is based on the
processes.
concept of getting to know, research, tasting and enjoying
• Investors/Shareholders: the culture of gastronomy of a certain country, area,
o Have an interest in how the chatbot region, or place. Starting precisely from the aspect of
impacts business growth and experience, Smith and Xiao (2008) define this term as any
customer satisfaction. journey through which the tourist enjoys and acquires
knowledge about local gastronomic products and thus
experiences different experiences in contact with food.
Some authors point out that gastronomic tourism is
actually a subcategory of cultural tourism (Lin et al.,
3. Theoretical grounds 2021; Zvirbule et al., 2023), bearing in mind that Long
(2004) believes that this form of tourism allows tourists
In today's rapidly growing world of technology, the to get to know the culture and traditions of a certain place
chatbot has emerged as an innovative virtual assistant that through the consumption of food. destinations. This fact
aids in communication between humans and computers. can be explained by the fact that through the consumption
A chatbot is computer program, which responds like a of food and different tastes, tourists learn about different
smart entity when conversed with through text or voice cultures, accumulate knowledge, and gain an authentic
and understands one or more human languages by Natural experience (Gheorghe et al., 2015). In accordance with
Language Processing (NLP) (Adamopoulou, 2020). the previous researches, it is evident that this form of
These programs utilize artificial intelligence (AI) and tourism is a complex category, which implies a
natural language processing to understand user queries combination of various aspects of the tourist experience
and provide relevant responses. The rapid information through the consumption of food, contributing to the
processing and concurrent query handling capabilities of economic revitalization of destinations and
chatbots have solidified their significance in differentiating the tourist offer with the aim of achieving
contemporary communication landscapes across diverse competitiveness on the gastronomic tourism market.
domains such as customer support, e-commerce, and
banking. These versatile tools offer multifaceted benefits, One of the key advantages of this approach is the
enabling efficient interactions between businesses and continuous availability to customers. The constant
customers. Chatbots come in several distinct types, each availability of such support allows timely access to
meticulously designed to serve specific purposes and information regardless of the user's location or time zone.
address varying user needs. By seamlessly integrating This approach often leads to increased customer
into various sectors, chatbots enhance operational satisfaction and fosters a sense of reliability and trust in
efficiency and user experiences, marking a pivotal the product or company. Moreover, a chatbot is capable
advancement in modern communication paradigms. of handling multiple user queries simultaneously without
compromising the quality of responses or the ability to

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address user inquiries. By resolving simple queries Rule based training

promptly, chatbots enable human customer support to
focus on complex issues, optimizing overall efficiency In this approach, the chatbot is trained using a set of
and improving the effectiveness of customer support. predefined rules. These rules are created based on
anticipated user queries and corresponding responses.
Another advantage of chatbot-based customer support is The chatbot matches user input with specific rules to
the consistency in response and problem-solving. generate appropriate replies. While rule-based training is
Traditional customer support may vary in terms of relatively straightforward to implement, it requires
knowledge and skills of the agent providing it, whereas a extensive manual rule creation and may not handle
chatbot follows a predefined response scenario, ensuring complex or unexpected queries effectively. (Thorat,
consistent quality and scope of service. Such predefined 2020)
scenarios provide reliable solutions to frequently
encountered problems. Through algorithmic machine
learning, chatbots can analyse all interactions with users
and continuously improve their responses and problem-
solving capabilities, enhancing their performance and
usefulness over time. Supervised learning

Despite the significant advantages of chatbot-based In supervised learning, the chatbot is trained using
customer support over traditional methods, chatbots labelled data. Human experts provide conversations or
cannot fully replace them. There are moments when dialogues, with each input paired with its corresponding
emotional intelligence, de-escalation of situations, and desired output. These paired examples serve as training
complex problem-solving, which only human customer data to teach the chatbot how to generate appropriate
support can demonstrate and provide, are necessary. responses based on given inputs. Supervised learning
Given these factors, a strategic approach to optimizing requires a substantial amount of labelled data, and human
customer support involves the integration of both experts' involvement is necessary to curate the training
chatbot-driven automation and human assistance, dataset. (Uprety, 2022)
culminating in a hybrid solution. Such a synergistic
framework capitalizes on the strengths of each Reinforced learning
component, leveraging the efficiency of chatbots for
routine inquiries while harnessing human expertise to Reinforcement learning involves training the chatbot
handle intricate and contextually nuanced interactions. through a trial-and-error process. The chatbot interacts
By fusing these capabilities, an enhanced customer with users and receives feedback on its responses. Based
experience can be delivered that strikes a harmonious on the feedback (reward or punishment), the chatbot
balance between automation and personalized learns to improve its conversational abilities over time.
engagement. Reinforcement learning requires careful design of reward
systems and may involve more complex training
A limitation associated with employing chatbots for algorithms. (Ricciardelli, 2019)
customer support lies in their inherent inability to fully It's important to remember that these approaches can be
grasp intricate inquiries and nuanced linguistic variations mixed or adjusted depending on what's needed and the
specific to different counties and regions. This constraint resources available for training a chatbot. This flexibility
arises from the complexity of natural language allows for better training strategies to match each
understanding and the challenges posed by local dialects chatbot's unique requirements.
and idiomatic expressions. Addressing this limitation
requires advancements in natural language processing In addition to mentioned techniques or as its follow up,
algorithms and cross-cultural linguistic modelling to Large Language Models and its usage as a “base” for
enable chatbots to effectively navigate the diverse Chatbots became fascinating thing. This integration
landscape of customer interactions. Chatbots rely on allows chatbots to provide contextually relevant and
keyword recognition, which can sometimes result in coherent answers, enhancing customer engagement and
inaccurate or incomplete responses to user inquiries. satisfaction (Li, 2023). Ability of LLM to interact in
They might struggle with local languages, idiomatic “almost human” way provided unbelievable results which
expressions, or sarcasm, resulting in repetitive responses are waiting to be implemented in months to come (Ornes,
that users may interpret as a lack of accessibility and 2023). Also, many programming solutions are getting
unprofessionalism. (Zumstein, 2018.) prepared for own / custom LLM-Chatbot
implementations (ex. (Github, 2023)). Practical
4. Different concepts of chatbot training examples on how it should be done together with its
advantages are publicly available (Adams, 2023).
The training of a chatbot encompasses a variety of
approaches and methodologies that are tailored to its Using new features of modern business as Big Data,
specific intended function. These techniques are diverse, Machine Learning, LLM together with experience having
accommodating the unique requirements and objectives from the past will undoubtably allow companies to grow,
of each chatbot implementation. Here are some common make new comparative advantage and provide fresh
ways: experiences for their customers. Remaining question is,
how long will it take for firms to realize this potential and
what would be a client’s feedback.

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4. Live Agent Handoff:

This paper will investigate the utilization of chatbots as o Smoothly transfer conversations to
customer support agents, irrespective of their training human agents when needed, with
methods. The focus is on exploring their effectiveness in conversation history intact.
customer service roles.
3. Personalization Features
1. Customer Data Integration:
5. Features of ChatBot o Use customer profiles, past
interactions, and preferences to
personalize responses.
2. Behavior-Based Recommendations:
o Suggest products, services, or
solutions based on user behavior and
query history.

4. Business-Specific Features
1. Lead Generation:
o Collect user details and qualify leads
for sales teams.
2. E-Commerce Integration:
o Assist in product searches, order
tracking, returns, and payments.
3. Appointment Booking:
o Schedule meetings, reservations, or
demos with integrated calendars.
1. Core Functional Features 4. Survey and Feedback Collection:
1. Natural Language Understanding (NLU): o Gather customer opinions on
o Understand user queries in natural products or services through surveys.
language and extract intent.
o Support multiple languages for 5. Analytical and Reporting Features
diverse customer bases. 1. Real-Time Analytics:
2. Conversational AI: o Monitor chatbot performance (e.g.,
o Ability to engage in human-like user satisfaction, response accuracy).
conversations. 2. Custom Reports:
o Manage context to follow up on o Generate reports on usage patterns,
previous questions or queries. frequently asked questions, or
3. Quick Response Time: unresolved issues.
o Provide instant replies to user 3. Sentiment Analysis:
queries, reducing response time. o Assess customer emotions to identify
4. Multi-Channel Integration: dissatisfaction or positive feedback.
o Work seamlessly across platforms
like websites, mobile apps, social 6. Administrative and Security Features
media (e.g., WhatsApp, Facebook 1. Role-Based Access Control:
Messenger), and email. o Limit access to sensitive information
5. Self-Learning Capabilities (AI/ML): or chatbot customization settings.
o Improve responses over time using 2. Data Security and Privacy:
machine learning and feedback. o Ensure compliance with regulations
o Adapt to new queries with minimal like GDPR, CCPA, or HIPAA.
manual updates. o Use encryption for sensitive user
data.
2. Customer Support Features 3. Version Control:
1. 24/7 Availability: o Allow rolling back to previous
o Offer round-the-clock support to chatbot versions when necessary.
ensure no downtime. 4. User Authentication:
2. Query Categorization: o Authenticate users for sensitive
o Automatically route complex queries operations (e.g., resetting passwords
to human agents. or checking balances).
o Categorize and prioritize issues
based on urgency or importance. 7. Scalability and Customization Features
3. Knowledge Base Integration: 1. Scalable Architecture:
o Access company FAQs, policies, or o Handle increasing volumes of user
manuals to provide accurate answers. queries without downtime.

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2. Customizable Templates: requests training more

o Enable businesses to tailor the simultaneously. agents.
chatbot to match their branding and Complexity Struggles with Better
industry-specific needs. Handling nuanced or equipped to
3. Third-Party API Support: highly complex handle
o Integrate with tools like CRMs queries. complex
(Salesforce, HubSpot), ERPs, or queries
payment gateways. requiring
critical
thinking.
8. Employee-Focused Features (if Internal Use)
1. HR Support:
2. Chatbots vs Mobile Apps
o Handle employee queries related to
Aspect Chatbots Mobile Apps
leave, payroll, and policies.
Ease of Use Requires no Requires
2. Training and Development:
downloads, downloading
o Provide learning resources and FAQs accessible via and installation,
for employees. web or may have a
3. Internal Task Automation: messaging learning curve.
o Automate repetitive tasks like platforms.
scheduling meetings or generating Integration Can integrate Typically
reports. directly into operates
platforms like independently
9. Multi-Modal Communication WhatsApp, unless integrated
1. Text and Voice Support: Messenger, or with backend
o Offer interaction through text and Slack. services.
voice interfaces for accessibility. User Primarily Multi-modal
2. Rich Media Interaction: Interaction conversational (touch, visuals,
o Use images, videos, and buttons to and text-based. gestures, etc.).
make conversations more interactive. Development Relatively Expensive and
Cost cheaper and time-consuming
10. Feedback and Improvement Features faster to deploy. to develop.
1. User Feedback Collection: Updates Can be updated Requires user
o Allow users to rate their experience centrally and action to update
instantly. the app.
and suggest improvements.
2. Performance Optimization:
3. Chatbots vs Voice Assistants
o Regularly update the chatbot with
Aspect Chatbots Voice
new features and better training data.
Assistants (e.g.,
Alexa, Siri)
6.ChatBots vs Other Technologies Interaction Primarily text- Voice-based
Mode based. interaction for
1. Chatbots vs Traditional Customer Support hands-free use.
Aspect Chatbots Traditional Context Struggles with Better at
Customer Retention retaining multi- maintaining
Support turn context in
Availability 24/7 availability, Limited to conversational voice-driven
instant business context. dialogues.
responses. hours, delays Applications Mostly used for Used for smart
due to human text-based home control,
availability. customer service, voice
Cost Cost-effective Requires lead generation, commands, and
after initial ongoing and information general queries.
setup. salary and retrieval.
training for Accessibility Suitable for users Better for
support in noisy hands-free
agents. environments or environments
Personalization Limited; High; humans with accessibility but unsuitable
depends on pre- can offer more issues (hearing for noisy places.
programmed empathy and disabilities).
data or AI personalized Technology Simpler and Requires
algorithms. responses. Complexity cheaper to advanced
Scalability Easily scalable to Limited develop speech
handle scalability as compared to recognition and
thousands of it depends on voice assistants. natural language
hiring and

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processing Aspect Chatbots Generative AI

(NLP). (e.g., ChatGPT)
Nature Rule-based or Open-domain
4. Chatbots vs AI Virtual Agents domain-specific conversational AI
Aspect Chatbots AI Virtual Agents AI for handling capable of
Capabilities Mostly rule- Advanced AI- predefined generating
based or limited driven agents tasks. diverse, human-
to predefined capable of like responses.
use cases. handling complex Training Trained on Trained on large-
tasks and learning domain-specific scale datasets
over time. datasets. covering diverse
Learning Limited learning Uses machine topics.
Ability capabilities (if learning (ML) to Response Predictable and Creative and
any). improve responses Style structured. dynamic, but
and understand sometimes less
user behavior. accurate for
Cost Low to medium, High due to domain-specific
depending on sophisticated queries.
complexity. AI/ML models Applications FAQ handling, Writing content,
and maintenance. order brainstorming
Application Customer Used in high- management, ideas, and
Scope support, FAQs, value applications lead generation. answering
and basic lead like financial complex, open-
generation. advising, HR ended questions.
systems, and Complexity Limited to Capable of
healthcare. structured handling more
Response Generic and Personalized, conversations complex, multi-
Quality dependent on dynamic, and within a scope. turn
programming context-aware conversations.
quality. responses.
7. Chatbots vs Human-Agent Hybrid Models
Aspect Chatbots Human-Agent
Hybrid Models
Efficiency Handles simple Redirects
5. Chatbots vs Robotic Process Automation (RPA) queries instantly complex queries
Aspect Chatbots RPA without human to humans,
Core Provides Automates intervention. ensuring high-
Functionality conversational repetitive, rule- quality responses.
interfaces for based tasks in Cost Cost-effective More expensive
human backend for handling high due to the need
interactions. systems. volumes of for human
User Front-end, Back-end, repetitive tasks. resources.
Interaction interacting with automating User May frustrate Higher
customers or workflows with Satisfaction users if unable to satisfaction as
employees. no direct user resolve complex humans address
interaction. issues. unresolved issues
Applications Customer Invoice by the bot.
support, lead processing, data Best Use Low-complexity Complex
engagement, entry, and Cases tasks like FAQs problem-solving
and process or order tracking. or personalized
information standardization. customer service.
retrieval.
Customization Requires Requires task- 7.Challenges Of Chatbots For Business
programming specific script
or training for development. Organisations
specific
domains. 1. Limited Understanding of Context
Efficiency Improves user Boosts • Challenge: Chatbots often struggle to
engagement operational understand the full context of a conversation,
through efficiency by especially if the user provides ambiguous or
conversations. eliminating complex inputs.
manual tasks. • Limitation: They may misinterpret user intent,
leading to irrelevant or unsatisfactory responses.
6. Chatbots vs ChatGPT or Generative AI

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• Example: A customer asking, “Can I get this by • Challenge: Chatbots often struggle to
next Tuesday?” may confuse a chatbot if the understand different languages, dialects, or
product or service isn’t explicitly referenced. cultural nuances.
• Limitation: This limits their ability to serve a
2. Difficulty Handling Complex Queries diverse, global customer base effectively.
• Challenge: While chatbots perform well with • Example: A chatbot trained in American
predefined or straightforward queries, they may English may misinterpret idiomatic phrases
falter with multi-layered or nuanced requests. used in British or Indian English.
• Limitation: For complex problem-solving, the
chatbot might need to escalate the issue to a 8. Customer Frustration Due to Limited Human-Like
human agent, delaying resolution. Interaction
• Example: Technical troubleshooting for • Challenge: Customers may feel frustrated when
software or hardware often requires human chatbots fail to provide natural, human-like
expertise. communication.
• Limitation: This can lead to a decline in user
3. Lack of Emotional Intelligence satisfaction and reduced trust in the
• Challenge: Chatbots cannot recognize or organization.
respond appropriately to a user’s emotional • Example: A chatbot using repetitive or overly
state. formal phrases may come across as robotic and
• Limitation: They may fail to provide impersonal.
empathetic support, which is crucial in sensitive
situations like customer complaints or 9. Dependency on Quality Training Data
healthcare. • Challenge: The effectiveness of AI-based
• Example: A chatbot responding with generic chatbots depends on the quality and quantity of
text to an angry customer may worsen the user the data used to train them.
experience. • Limitation: Poorly trained chatbots can provide
irrelevant or misleading responses.
4. Dependence on Predefined Scripts • Example: A chatbot trained only on e-
• Challenge: Most chatbots rely on programmed commerce data may fail to address queries
workflows and lack flexibility in dynamic related to technical support.
scenarios.
• Limitation: If the user deviates from expected 10. Inability to Handle High Variability in User Input
inputs, the chatbot may respond inaccurately or • Challenge: Users often phrase the same
not at all. question differently, making it difficult for the
• Example: A customer requesting a service chatbot to identify intent accurately.
outside of predefined options may get stuck in • Limitation: This reduces the chatbot's
an unhelpful loop. effectiveness in handling diverse inputs.
• Example: A customer asking, "What's my
5. High Initial Development and Maintenance Costs refund status?" might be misunderstood if
• Challenge: Implementing a sophisticated phrased differently, like "When will I get my
chatbot with advanced AI capabilities can money back?"
require significant investment in development,
integration, and training.
8.Evolution Of Chatbots in Business
• Limitation: Ongoing updates, training, and
maintenance add to long-term costs. Organisations
• Example: AI-based chatbots that rely on 1. Early Stages: Rule-based Chatbots (2000s - Early
machine learning require constant data and 2010s)
computational resources to improve In the early stages, chatbots were rule-based, offering pre-
performance. programmed responses based on specific user inputs.
These bots were primarily designed for simple tasks like
6. Privacy and Security Concerns answering FAQs and performing basic functions like
directing users to the correct department or providing
• Challenge: Chatbots that collect personal or limited support.
sensitive information must adhere to strict
privacy regulations. • Key Features:
o Scripted conversations.
• Limitation: Poorly designed systems may
o Limited interaction—users needed to
expose organizations to data breaches or non-
follow a specific flow.
compliance with laws like GDPR.
o Focused mainly on answering routine
• Example: A chatbot collecting customer questions and directing customers.
payment details without encryption poses a o Not very adaptive to changing
significant security risk. queries.
• Business Use Cases:
7. Language and Cultural Barriers
o Basic customer service (e.g.,
automated ticketing systems).

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o Website navigation assistance. businesses to deploy voice assistants that could handle a
2. Development of AI and NLP (2010s) wider range of tasks. The combination of AI and deep
The rise of AI and Natural Language Processing (NLP) learning allowed chatbots to provide more intuitive,
began enhancing the capabilities of chatbots, allowing conversational interactions and manage more complex
them to better understand and process human language. requests.
Bots started becoming more conversational and context- • Key Features:
aware, improving the user experience and enabling more o Voice-based interactions (e.g.,
complex tasks. through Alexa, Google Assistant).
• Key Features: o Conversational AI with sentiment
o Introduction of AI-driven chatbots analysis, enabling bots to gauge
capable of understanding context and emotions and adjust tone accordingly.
intent. o Integration with advanced AI
o NLP allowed bots to process algorithms for decision-making.
variations in user inputs and provide o Ability to perform complex tasks,
more relevant responses. such as booking appointments,
o Ability to carry on more natural, processing transactions, or solving
human-like conversations. customer issues autonomously.
o Integration with business tools like • Business Use Cases:
CRM systems and databases. o Voice-enabled customer support.
• Business Use Cases: o Virtual assistants to help employees
o Customer support automation (e.g., with day-to-day tasks (HR queries,
AI bots could handle more advanced scheduling).
queries). o Advanced self-service options in
o Sales support (helping customers with customer service and sales.
product recommendations and order o Hands-free interaction in industries
status). such as healthcare, retail, and
o Lead generation (qualifying prospects automotive.
through initial interactions). 5. Advanced Analytics and Predictive Capabilities
o Use in marketing campaigns (2025 and Beyond)
(personalized promotions and content Chatbots are now evolving beyond just handling inquiries
recommendations). to providing insights, predictive analytics, and making
3. Multichannel and Omnichannel Integration (Mid to decisions based on historical data. Future bots will
Late 2010s) integrate machine learning and deep learning to not only
Chatbots started being deployed across multiple respond to queries but also predict customer needs,
communication channels beyond websites—such as automate processes, and provide business intelligence.
mobile apps, social media platforms (Facebook • Key Features:
Messenger, WhatsApp), and voice assistants (Alexa, o Predictive analytics (bots analyzing
Google Assistant). This enabled businesses to engage historical data to predict customer
customers seamlessly across different touchpoints. behavior).
• Key Features: o Integration with enterprise resource
o Omnichannel integration (ability to planning (ERP) systems to automate
chat across websites, mobile apps, business workflows.
and social media). o Use of deep learning for more human-
o Real-time, personalized customer like conversational experiences.
service. o Data-driven insights to help
o Use of machine learning (ML) to businesses make informed decisions.
improve bot responses over time. • Business Use Cases:
o Advanced conversational AI capable o AI-powered sales bots that can predict
of understanding customer sentiment. leads’ likelihood of converting and
• Business Use Cases: tailor marketing strategies.
o 24/7 customer support across multiple o Customer service bots that can predict
platforms. issues based on previous interactions,
o Personalized marketing and offering proactive solutions.
promotions based on user behavior o Business intelligence and reporting
and preferences. (automated reporting, data analysis).
o E-commerce integration (assist
customers through the shopping
process).
o Automated post-sale support (e.g.,
tracking deliveries, returns, and
feedback collection).
4. Voice-enabled and Intelligent Virtual Assistants
(2020s)
Voice-powered chatbots became more popular, as
advancements in voice recognition technology allowed

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CHATBOT FOR BUSINESS ORGANISATION

humans handle more complex or emotional interactions,

leading to a hybrid model where AI augments human
9.Future Aspects of Chatbots capabilities.
Voice-enabled Interactions: As voice recognition
technology improves, voice-based chatbots will become
more common in customer interactions. Businesses will
likely adopt voice assistants for hands-free, real-time
support across various devices.
Security and Compliance: With stricter regulations on
data privacy, chatbots will need to be compliant with data
protection standards like GDPR. Future bots will be
designed to ensure secure and privacy-conscious
interactions with customers.

10. Case studies – practical examples

T.S. Nguyen (Nguyen, 2019) case study examines a

software company in the software industry that provides
applications on multiple platforms (Android, iOS,
Windows) and experiences complications in the
installation process and customer support. The traditional
customer support model involves an FAQ section on the
Customer Support Automation: Chatbots are company's website and email responses. The company
increasingly being used for 24/7 customer support, experiments with a chatbot during periods of increased
handling common inquiries, troubleshooting, and offering user activity to improve response times and reduce the load
personalized solutions. Over time, they will become even on human support personnel. A questionnaire is designed
more adept at managing complex issues through advanced to assess various dimensions of user experience. Case
natural language processing (NLP) and machine learning study consist of two research questions: potential effects of
(ML). the chatbot on customer Support and impact of chatbot
Personalization and Targeted Marketing: Chatbots will Assistance. In first research question the study analysed ten
gather customer data to offer personalized dimensions of customer experience, including information
recommendations, targeted promotions, and proactive quality, system quality, service quality, usefulness, and user
support based on individual preferences, behaviors, and satisfaction. The results indicated that the chatbot's
past interactions. presence led to improved responsiveness, reducing
Lead Generation and Sales: Many businesses use customer support response times. However, no significant
chatbots for lead generation, qualifying prospects, and differences were observed in information quality or system
even closing sales by engaging customers in real-time. quality measures between the chatbot-enabled and
Chatbots can also assist in the post-sale process by traditional systems. This suggests that while the chatbot
tracking customer satisfaction and gathering feedback. improved response time, it did not significantly enhance
Employee Assistance and HR: Chatbots can be deployed the quality of information provided to customers. In second
internally to help employees with HR-related tasks such research question the study examined cases where the
as onboarding, benefits inquiries, payroll questions, and chatbot was unable to fully resolve customer issues,
more. As AI advances, these bots will become more leading to human agent involvement. Contrary to initial
capable of handling routine administrative functions, expectations, the study found that unsuccessful chatbot
allowing human resources teams to focus on strategic interactions did not significantly worsen the overall
initiatives. customer experience. While there were no significant
Advanced Analytics and Reporting: With AI-driven differences in information quality, system quality, and user
capabilities, chatbots can analyze customer interactions, satisfaction measures, the ratings in scenarios involving
identify trends, and generate reports that help human agent assistance tended to be more consistent
organizations make data-driven decisions in real-time. around the medians. This suggests that customers who
Multilingual Capabilities: Businesses will increasingly experienced chatbot-to-human escalation did not
use chatbots with multilingual support to reach a global necessarily have a worse experience. The study suggests
audience. This could drastically reduce the costs and time that the chatbot's presence positively influences certain
required for providing customer service in different aspects of service quality and user satisfaction. However,
languages. human involvement is important when the chatbot can't
Omnichannel Integration: Chatbots will be able to solve problems by itself, especially in maintaining
seamlessly operate across multiple channels—websites, information quality and certain service quality dimensions.
social media platforms, mobile apps, etc.—creating a
unified customer experience. Integration with various The case study acknowledges limitations and suggests
platforms will make chatbots an essential tool for further research to explore additional dimensions and
businesses engaging with customers across different factors that could influence user experience with chatbots
touchpoints. in customer support scenarios.
AI and Human Collaboration: Rather than replacing
human workers, chatbots will likely collaborate with
them. For example, bots can handle routine queries while

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Case study conducted by Park et al. (Park S., 2019) aims higher conversion rates for online purchases. The
to design a conversational sequence for a brief implementation of chatbots, particularly cardbots,
motivational interview (MI) for stress management and resulted in improved user experience, efficient order
explore its effectiveness on a Web-based text messaging placements, and increased customer satisfaction. Naver's
application. The study sought to understand users' efforts to further enhance automation through robotic
perception of the conversation, its impact on coping with process automation are also highlighted. The company
stress, and suggestions for improving mental health aimed to increase automation rates for various tasks, such
support. The researchers developed a chatbot called as checking shipping status, through robotic process
"Bonobot" that utilized MI skills, including questioning, automation, which could lead to reduced costs and
reflections, and MI-adherent statements, to engage users improved customer satisfaction.
in a structured conversation. The study involved graduate
students who engaged in conversations with Bonobot In conclusion, the article emphasizes the value of
about their stress-related concerns. Main findings are as chatbots, particularly cardbots, in business
follows: Participants generally showed a preference for communication and customer engagement. It discusses
Bonobot's use of thought-provoking questions, which Naver's journey in developing and implementing chatbot
encouraged them to reflect on themselves and explore solutions, highlighting their impact on customer
potential changes. While feedback from Bonobot, satisfaction, efficient communication, and potential
including reflections and supportive statements, was benefits for small businesses and offline service
well-received, certain participants found it to be repetitive providers. A case study of Siri (Lee, 2019.) begins by
or lacking contextual accuracy. The non-judgmental and introducing chatbots as computer programs designed to
empathetic approach adopted by Bonobot was highly mimic human conversations. It categorizes Siri as a
valued by participants, making it easier for them to open general-purpose chatbot that can handle a wide array of
up and address their concerns. Participants expressed a queries for specific task. It explains how rule-based
desire for more personalized and context-specific chatbots use question-and-answer knowledge bases,
feedback, along with informational assistance and while recent advancements in deep learning have
specific action plans to better cope with stress. There was significantly improved chatbot performance, allowing
a range of responses to the problem-solving and change- them to engage in more sophisticated conversations.
oriented aspects, with some participants resistant and However, challenges remain, particularly in
others finding the conversation to be motivating and understanding multi-turn conversations. The study's
inspirational. The study highlights the potential of using methodology is detailed, focusing on sentiment analysis
a chatbot to conduct MI for stress management. It conducted on posts from Weibo, a Chinese social
emphasizes the importance of combining technical and networking site. By categorizing sentiments as positive or
relational components in designing chatbot negative, the study sought to gauge users' opinions about
conversations. While participants generally found the Siri. The analysis of positive sentiments revealed that
conversation helpful, there were limitations, such as the users generally hold favourable views of Siri. Commonly
chatbot's inability to provide fully context-aware associated terms included "Apple," "voice," and
responses. "intelligent," reflecting positive discussions. On the flip
side, the analysis of negative sentiments unveils a range
Future research could explore different conversation of issues. Users express dissatisfaction stemming from
sequences, incorporate multimedia elements, and develop unexpected sound outputs, often leading to embarrassing
assessment tools to measure the effectiveness of chatbot- or awkward situations. High user expectations also
client interactions in a therapeutic context. contribute to negative sentiments, as users anticipate Siri
to fulfil complex requests or tasks beyond its capabilities.
A case study conducted by Miri Heo and Kyoung Jun Lee The article subsequently draws a meaningful
(Heo Miri, 2018) discusses the rise of chatbot-based juxtaposition between Siri and Alime, Alibaba's
messaging applications as a potential alternative to intelligent shopping assistant. Notable distinctions
traditional web browsers. It highlights the growth of between the two chatbots emerge, particularly in terms of
messaging apps like KakaoTalk, Tencent, Line, and input methods and functionalities. While Siri
Whatsapp, which are incorporating chatbots as a part of predominantly relies on voice interactions, Alime leans
their ecosystem. The article explores the evolution of towards text-based input, although it does offer limited
Naver TalkTalk, a card-based chatbot application voice functionalities. Moreover, Siri, as a general-
developed by Naver, a major internet company in Korea. purpose chatbot, spans a broad array of applications,
Initially, Naver's attempt to engage users through direct whereas Alime is tailored for e-commerce, assisting
picture uploads for offline stores did not work as customers with shopping-related inquiries and tasks. An
anticipated. Online communication between consumers intriguing observation from the study is the phenomenon
and stores was better facilitated through competitors like of users "coming on to" chatbots, especially evident with
KakaoTalk. This led to the creation of Naver TalkTalk, a phrases like "I love you." This curiosity-driven
chatbot-based platform that allowed users to engage with behaviour, while unconventional, underscores users'
offline store owners more efficiently. Naver TalkTalk's desire to explore the boundaries of human-chatbot
success was attributed to its user-friendly cardbot interactions. Developers are encouraged to consider and
interface, where users could select options from craft responses that handle such interactions tactfully,
predefined categories, simplifying the interaction potentially infusing humour and creativity into the
process. The article also discusses Naver's progression chatbot's repertoire.
from simple chatbots to cardbots, which allowed users to
choose scenarios and predefined options. The In conclusion, the sentiment analysis provides valuable
introduction of cardbots led to increased success rates and insights into users' perceptions of Siri. Users generally

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CHATBOT FOR BUSINESS ORGANISATION

exhibit a positive sentiment towards Siri, appreciating its prepare a custom chatbot ready to be implemented on any
functionalities and the engagement it fosters. The study web site. It will be able to reply on custom queries related
accentuates the importance of adeptly managing to client’s database, documents or even web sites by using
interactions, humorously addressing unconventional OpenAI (ChatGPT) conversational agents or LLM
queries, and ensuring consistent user satisfaction. It also chains. Further automatization is available in cases when
underscores the potential for further research in sentiment such chatbot cannot provide clear answer and should
analysis across diverse platforms and demographic provide direct message to a company or connect a
groups, broadening our understanding of chatbot customer to a live support. Introduced in the first quarter
adoption and user engagement. of 2023, FlowiseAI is a nascent tool that serves as a
prominent illustration of the ongoing advancements in
One of local examples on how chatbot can be used is business optimization geared towards achieving the
presented on digitalnakomora.hr (Croatian Chamber of pinnacle of customer experience. Its recent inception
Commerce, 2023). The "Digital Chamber," a underscores the dynamic evolution within this field,
communication platform designed for business entities, highlighting the pursuit of elevated customer satisfaction
public administration, and citizens, represents an and operational excellence.
initiative led by the Croatian Chamber of Economy. This
project has received co-financing from the European 10.Evolution Of ChatBots For Business
Regional Development Fund through the Operational
Programme Competitiveness and Cohesion. The platform Organisations
encompasses various digital initiatives, including e-
government authorizations, online learning, digital 11. Conclusion
legislation, virtual trade fairs and promotions, electronic
financing, membership management through online Chatbots offer distinct advantages that contribute to
platforms, and digital economic information improved customer experiences. The continuous
dissemination. Large set of services which are provided availability of chatbots ensures timely access to
with Digital Chamber is sometimes confusing and information, enhancing customer satisfaction and
difficult to follow, especially for new entrepreneurs. Idea building trust. The ability of chatbots to handle multiple
of implementing a chatbot on platform appeared exactly queries simultaneously, coupled with their consistent and
in order to simplify the onboarding process of SMEs algorithmically improving responses, optimizes overall
which are main clients of this solution. efficiency in customer support. However, while chatbots
offer significant benefits, they are not without limitations.
Chatbot is always located in right bottom corner of the Their inability to fully comprehend complex queries,
screen (desktop and mobile solution) which is one of the nuanced language variations, and emotional intelligence
best user experience guidelines for its implementation underscores the importance of a hybrid customer support
(Lee, 2023). Digital Chamber chatbot is trained on rule approach that combines chatbots with human assistance.
basis approach where it expects specific keywords and This fusion ensures a balance between efficiency and the
user queries where it has prepared replies. In situations human touch that is crucial for resolving intricate issues
where it cannot help the user or it does not understand the and cultivating customer loyalty.
question it suggest typing “HELP” in order to see main
categories where help can be provided. This approach as The case studies presented highlight the real-world
“zero level” support is good enough, reducing applications and impacts of chatbots in diverse business
unnecessary calls or emails where already written scenarios. From improving responsiveness in customer
answers will be provided. However, at the moment better support to facilitating motivational conversations for
understanding or user guidance through the platform is stress management, chatbots showcase their potential
missing and is considered as chatbot update. Previously across various domains. The success of these
mentioned corelates with different conducted studies implementations underscores the importance of
where “trust” in chatbots is getting noticeably higher as thoughtful design, user-friendly interfaces, and
they are providing wider understanding of user queries. continuous adaptation to user feedback.
(Wang, 2023).
The integration of chatbots into modern business
The process of integrating a chatbot with a learning phase operations represents a significant step toward efficiency,
is time-consuming and often involves significant responsiveness, and enhanced customer experiences.
financial expenditures. Like other emerging technologies, Special role and new improvements are played by
there are strategies that prioritize the streamlining of the artificial intelligence and its “variations” seen as Large
implementation process, ultimately making it more Language Models. Integrating natural language
accessible to a broader range of users. These approaches capabilities into chatbot responses represents a significant
aim to reduce the complexities associated with deploying step forward in minimizing miscommunication and
a chatbot while also minimizing the financial burden. addressing information gaps. This enhancement is
Consequently, the evolution of this technology is marked anticipated to significantly improve the quality of bot-
by a effort to enhance efficiency and affordability, client interactions by fostering a heightened sense of
aligning it with the goals of widespread adoption. Great confidence and assurance through seamless and effective
example of this approach is FlowiseAI, an Open-source communication. The continuous advancement of
user interface visual tool to build your customized LLM technology is paving the way for the creation of
flow (FlowiseAI, Inc, 2023). With a lot of resources even interactive tools (easy to use) designed for crafting
non-technical user can understand basic concepts of this customized chatbots, thereby progressively bridging the
tool. Mainly with trial-and-error approach it is possible to

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