AI Chatbots: What's all the buzz about?

TL:DR: AI chatbots are not just faster versions of the old bots—they are fundamentally more powerful tools that can serve as full-time digital employees if designed and implemented thoughtfully.

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In the olden days (about 2 years ago), it took a team of people a few months to build out an intelligent chatbot. A large part of that process was manually pathing out every single possible conversational flow that a user may take. Common chatbots like an FAQ bot, or "where is my order" bot, required a lot of what we call "conditional logic", meaning "if the user says this, then say/do that". Yes, tools like Intercom/Drift made it a lot easier to build out, but these were not intelligent chatbots, they were simply managing basic queries with predictable pathways.

Nowadays, with the advent of mature AI models along with the platforms to build AI chatbots - it takes a fraction of the time to build something even more powerful (and intelligent) than previously possible. Hence, every second website launching an AI chatbot.

Remember an (ChatGPT, Claude, Grok) LLM= Large Language Model, anything that requires a search, an exchange, or management of LANGUAGE - is where AI truly excels. Hence AI chatbots being a no-brainer use case. And of course chatbots are the most common interface through which most people engage with AI currently.

However, not all AI chatbots are created equally. For two main reasons: one, when a technology becomes democratized, the quality average drops massively, and two, most chatbot projects are being built by people who aren't product/UX designers. If you've ever given a software project to a developer to build without any pre-defined UX/UI (visual product guidelines) - you've seen the results...

Moreover, building an AI chatbot isn't as easy or simple as the 22 year old's on YouTube will tell you. Especially if it has to engage with your customers, deal with sensitive data, and represent your brand.

The emotional rollercoaster of fine-tuning an AI chatbot goes something like this, and in the following order:

"This feels like telling a child what to do!!!"
"Why are teenagers so difficult to deal with?"
"Damn, that was smart, you wise old sage!"

Not too different from training a new intern I guess, perhaps minus the wise old sage part. What's really exciting about the possibilities when it comes to AI chatbots - is how quickly you can train this new staff member and get them up to speed with your company processes and SOPs. Not to mention the consistency of their output, they just never leave office!

This is also where many are under-tapping the potential of an AI chatbot, they see it the same way they saw an Intercom or Drift chatbot, but with a shorter build time. They don't see the back-end possibilities when it comes to pairing the chatbot with multiple AI agents and connecting it deeper into their business data. In our opinion, AI chatbots should not be seen as simply a solution to qualify leads or reduce service response times, but as a full end-to-end employee who can serve potential customers in highly personalised and detailed ways.

The AI chatbot/AI agent landscape is a very misunderstood one, which makes sense given the overload of information coming at you from every direction. Thus, executives whose job it is to protect their brand, reputation, and revenue projections are not going to venture into unknown territories. There are risks not worth taking in an area of relatively new technologies, and understandably so.

More than 92% of Fortune 500 companies are using AI chatbots in some way already.

However, at the same time, many executives see the enormous potential, both from a cost savings perspective and customer service quality. They take the time to understand what is risky and what is not, what has been proven to deliver ROI, and who has the credibility to build it. They also understand the opportunity cost. When consumers (your customers) begin interacting with other businesses in a certain way, that new normal carries over expectations to all industries and services. Once people got used to websites, every business needed a website. The difference here is that it won't take 10 years to normalize, it's already normalized.

Nowadays it's a matter of time before executives realize the cost of inaction, every month without leveraging AI's potential, is a month of wasteful expenditure and unrealized gains.

What has been an interesting yet logical learning we have found is that the executives who want to implement AI in their business are typically running growing enterprises with efficient operations. It makes sense because they have a general ability to see operational ROI in any given system (regardless of if it's a CRM or an AI chatbot). Additionally, they understand the inherent risks that accompany the act of staying ahead in their industry. Which is why they are ahead.

AI adoption is daunting, we recognize this and we too experience the constant pressure to keep up to date with the latest advancements, AI use-cases and tools. The reality is however, that this is now our reality, and no one is spared for the next few years (aside from plumbers and electricians).

Sadly, a lot of perfectly well-run businesses are going to slowly die in the coming years, and it's not because they failed to innovate - it is simply because they failed to keep up with the times.

And as Bob Dylan so rightly said, "the times they are a-changin..."

In Conclusion:

• Avoid quick-fix, low-quality solutions.
• Look beyond surface-level applications like lead qualification.
• Recognize AI as a transformative opportunity, not a fad.
• Staying competitive means embracing change—even if it feels uncomfortable.