Shabnam Katoch • 06 Aug 2023

What is AI Chat - A Complete Guide

Learn about AI Chat and how it works. Enable AI Chat on your website for cheapest AI Customer Support starting at just $1 per month

What is AI Chat - A Complete Guide

In the ever-evolving digital landscape, businesses are constantly seeking ways to improve customer experience and streamline operations. One technology that has been making waves in this regard is AI Chat. AI Chat, or AI Chatbots, are software applications that use artificial intelligence to engage in natural language conversations with users. They can provide instant responses, guide users, offer personalized recommendations, and even collect valuable user data.

The adoption of AI Chat has been growing rapidly. According to a report by Deloitte, the global conversational AI market, which includes AI Chat, is expected to grow at a compound annual growth rate (CAGR) of 22% from 2020 to 2025, reaching almost US$14 billion by 2025. Furthermore, chatbots currently represent the top use of AI in enterprises, and their adoption rates are expected to almost double over the next two to five years.

In this blog, we will learn what AI Chat is, how it works, its benefits, and how you can integrate it into your website. We will also discuss the latest tools available for enabling AI Chat on your website. So, whether you're a business owner looking to enhance your website's user experience or a curious reader interested in the latest digital trends, this blog is for you. Let's dive in!

What is AI Chat?

Artificial Intelligence (AI) Chat, often referred to as an AI Chatbot, is a sophisticated software application that leverages the power of artificial intelligence to engage in natural language conversations with users. This innovative technology is designed to simulate human-like interactions, thereby providing a more personalized and efficient user experience.

AI Chatbots are capable of understanding and responding to both text and voice inputs from users. They are programmed to interpret the user's language, comprehend the context and intent of the conversation, and provide relevant and accurate responses. This ability to mimic human conversation and deliver instant, personalized responses sets AI Chatbots apart from traditional customer service methods.

The core technology behind AI Chat is Natural Language Processing (NLP), a branch of AI that deals with the interaction between computers and humans using natural language. NLP enables chatbots to understand and analyze the user's input, extract relevant information, and generate responses that are coherent and contextually appropriate.

AI Chatbots are not just limited to understanding and responding to queries; they are also capable of learning from past interactions. They use machine learning algorithms to continuously improve their performance over time. Each interaction with a user provides data that the chatbot can learn from, thereby refining its understanding of human language and improving the accuracy of its responses.

AI Chatbots have found widespread application across various industries, including e-commerce, customer service, healthcare, and education. They are used to automate tasks, provide 24/7 customer support, gather customer insights, and enhance user engagement. By providing instant, accurate, and personalized responses, AI Chatbots are revolutionizing the way businesses interact with their customers and are set to play a pivotal role in the future of customer service and engagement.

AI Chat is a powerful tool that combines the capabilities of artificial intelligence, natural language processing, and machine learning to deliver a superior and personalized user experience. It is an integral part of the digital transformation journey of businesses, enabling them to provide efficient, round-the-clock customer service, and gain valuable insights into customer behavior.

How does AI Chat work?

AI Chat, or AI Chatbot, operates using a combination of Natural Language Processing (NLP), machine learning, and computational linguistics. The process begins when a user inputs a query, either through text or voice. The AI Chatbot then processes this input using NLP, which involves several steps.

Firstly, the chatbot performs sentence segmentation where it breaks down the user's input into individual sentences. Next, it performs tokenization, breaking down each sentence into individual words or 'tokens'. These tokens help the chatbot understand the different components of the user's input.

The chatbot then performs part-of-speech tagging, where it identifies the grammatical role of each word - whether it's a noun, verb, adjective, etc. This helps the chatbot understand the structure of the sentence. Named entity recognition is another process where the chatbot identifies important elements in the text such as names, places, dates, etc.

The chatbot then performs dependency parsing to understand the relationship between the words in the sentence. This helps the chatbot understand the overall meaning of the user's input. The final step is intent classification and entity extraction, where the chatbot determines what the user wants to do (intent) and what their input refers to (entity).

Once the chatbot has processed and understood the user's input, it generates an appropriate response. This response is based on a predefined set of rules or scripts, or it can be generated using machine learning algorithms if the chatbot is more advanced.

The chatbot then learns from each interaction with the user. It uses machine learning algorithms to analyze the success of its responses and adjust its future responses accordingly. This continuous learning process allows the AI Chatbot to improve its performance over time, becoming more accurate and efficient in responding to user queries.

Hence, AI Chat works by combining advanced technologies like NLP and machine learning to understand, respond to, and learn from user inputs. This allows it to provide accurate, personalized, and efficient responses, thereby enhancing the user experience.

Chat AI for your website

Incorporating Chat AI into your website can significantly enhance the user experience by providing instant responses to user queries, guiding users through your website, and offering personalized recommendations. It can also collect valuable user data and insights, which can be used to optimize your website and offerings.

According to a recent report by Microsoft, the integration of AI-powered chat platforms like Bing Chat Enterprise into business operations has shown transformative potential in
reshaping every aspect of business. The report highlighted that these AI chat platforms are not only enhancing customer interactions but also ensuring commercial-grade data protection, which is a critical aspect for businesses dealing with sensitive data.

Moreover, the use of AI chat on websites has seen a rapid increase. ChatGPT, an AI chatbot, was launched in November 2022 and quickly became the most rapidly adopted consumer app in history. This rapid adoption signifies the growing acceptance and reliance on AI chatbots by businesses and consumers alike.

AI chat for your website can serve as a 24/7 customer service representative, answering queries, resolving issues, and providing information whenever needed. It can also guide users through complex processes, provide personalized product recommendations, and even assist with transactions. This level of service can significantly improve user satisfaction and loyalty, leading to increased customer retention and revenue.

Furthermore, AI chat can collect and analyze user data, providing valuable insights into user behavior, preferences, and needs. This data can be used to optimize your website, improve your products or services, and tailor your marketing strategies. For instance, if the AI chat identifies a common issue or question among users, you can address this in your website content or FAQs.

How AI Chat helps in Customer Support for websites

AI Customer Support is being utilized by many big businesses to resolve 95% of customer queries, here are 5 ways in which AI customer support helps your business,

  • Personalization: AI Chat can analyze user behavior and preferences to deliver personalized content and recommendations. This means that each user gets a unique, tailored experience that aligns with their interests and needs. For example, an AI Chat can suggest products based on a user's browsing history or answer questions about specific services they've shown interest in. This level of personalization can significantly enhance the user experience and increase conversion rates.
  • 24/7 Availability: Unlike human customer service representatives, AI Chat can provide round-the-clock support. It can offer immediate responses to user queries, regardless of the time of day. This 24/7 availability is particularly beneficial for businesses that operate globally in different time zones. It ensures that all users receive timely assistance, enhancing customer satisfaction and loyalty.
  • Increased Efficiency: AI Chat can handle multiple conversations simultaneously, reducing response times and enhancing customer service. It can quickly answer common questions, resolve simple issues, and guide users through various processes. This allows human customer service representatives to focus on more complex tasks and issues, increasing overall efficiency.
  • Data Collection and Analysis: AI Chat can collect and analyze data regarding user interactions. This includes data on the most common queries, user behavior patterns, conversion rates, and more. These insights can be used to optimize your website, improve your products or services, and tailor your marketing strategies. It can also help identify potential issues or areas for improvement.
  • Improved User Engagement: AI Chat can create an engaging user experience, encouraging users to spend more time on the website. It can interact with users in a conversational manner, answer their questions, provide relevant information, and guide them through the website. This interactive experience can make users feel more connected and engaged, increasing their likelihood of returning to the website and making a purchase.

How to Enable AI Chat on your Website

There are several tools available that can enable AI chat on your website, including ChatGPT by OpenAI, Dialog Flow by Google, Watson Assistant by IBM, Botpress, and LiveChat. However, one tool that stands out for its ease of use, affordability, and quick setup is Bodt.

Bodt is a no-code AI chatbot builder that allows you to create a customized AI chatbot for your website. Built with OpenAI, Bodt brings the power of artificial intelligence to your business, helping you grow and connect with your audience more effectively.

One of the key features of Bodt is its quick setup time. In just 15 minutes, you can develop your own chatbot that's specifically trained on your data. The process is simple: connect your website, choose the pages you want your chatbot to learn from, and start training. The resulting AI chatbot is capable of answering any queries related to your business, covering everything from help and policies to support and beyond.

Bodt also offers integrations with your favorite tools to make the process of training as smooth and quick as possible. It's designed to reduce your customer support expenses, recommend and sell with your chatbot, and connect with a global audience via multilingual capabilities.

Moreover, Bodt is incredibly affordable. With a Pay-as-you-go plan, you can use Bodt for just $1 for every 25 pages or 100 messages. This makes it a cost-effective solution for businesses of all sizes.

So, if you're looking for a tool to enable AI chat on your website, Bodt is a great option to consider. It's quick, easy to use, affordable, and effective, making it an excellent choice for enhancing your website's user experience and customer service.


In the digital age, where customer expectations are continually evolving, businesses must leverage innovative technologies to stay competitive. One such technology is AI Chat, a tool that uses artificial intelligence to engage users in natural language conversations, providing a more personalized and efficient user experience.

AI Chat works by using Natural Language Processing (NLP) and machine learning algorithms to understand and respond to user inputs. It can analyze the user's input, understand the context and intent, generate an appropriate response, and learn from the interaction to improve future responses.

Integrating AI Chat into your website can significantly enhance the user experience. It provides instant responses to user queries, guides users through your website, and offers personalized recommendations. It also collects valuable user data and insights, which can be used to optimize your website and offerings.

The benefits of having AI Chat on your website are numerous. It offers personalization, 24/7 availability, increased efficiency, data collection and analysis, and improved user engagement. Tools like Bodt make it easy and affordable to integrate AI Chat into your website, allowing you to reap these benefits and more.

Hence, AI Chat is a powerful tool that can transform your website and business. It enhances user experience, improves customer service, provides valuable insights, and ultimately,
drives business growth. With the rapid advancements in AI technology and the growing acceptance of AI chatbots, now is the perfect time to integrate AI Chat into your website.

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