Live chat and AI chatbots are two of the most popular technology-based solutions for customer service. However, many people conflate the two or may not understand the differences between them. Both have advantages and disadvantages so it’s important to examine your industry and target audience when choosing one for your business website.
To help you decide which one will work better for your business, let’s take a look at what makes them different and how to choose the one that’s right for you.
What is Live Chat?
Live chat is a feature that allows customers to direct their comments or concerns to a human through a text interface, generally on the company’s website. These people can be company employees or outsourced to a professional live chat services provider.
The real people are then able to communicate with customers who may not have the time or desire for a phone call, especially if they think they’re going to have to wait on hold for over an hour.
This is especially valuable in the modern age, as a 2024 study of 2,000 adults shows that 70% of adults 18-34 prefer text messaging to phone calls. If they have to call for customer service, they may choose to use another company that will let them ask questions over text, unless you also give them that option.
What is an AI Chatbot?
Conversely, an AI chatbot uses artificial intelligence (i.e., a computer) to answer common customer questions. The computer is given a list of responses to common questions and the AI determines which of the prewritten questions the customer is actually asking so that it can give the correct response.
For example, if your prewritten prompt is “What days are you open?”, the AI chatbot can recognize questions like, “What is your schedule?”, “Are you open tomorrow?”, and “What time do you close on Wednesday?” are all asking roughly the same thing and give the prewritten response of your schedule.
Unlike generative AI (like ChatGPT or other programs), the responses are taken from your prewritten list, which reduces the chances of the inaccurate AI-generated responses you’ve likely seen posted on social media.
Which One Works Best For Me?
The best choice for your website will depend on several factors, the biggest and most important of which is, “What kinds of questions will I be asked?” If you only expect to get variations on the same five questions, AI will serve you better.
If you’re expecting a wide variety of inquiries, live chat is usually the better option, especially if the questions have complex answers that the AI might not be able to correctly parse.
However, for most businesses, using a combination of the two is the best choice. The AI chatbot can work as the first line of defense and filter out the easy questions so that a real person doesn’t have to spend time answering “Are you guys open on Tuesday?”
The live chat employees can then focus on the more complex customer complaints that might cause AI to struggle or potentially answer incorrectly.
