How knowledge-based Chatbots are evolving customer support

Delivering the answer to customers' queries quickly isn't the main purpose of AI chatbots, but rather, their main goal is to provide accurate answers that are in compliance with the companies' standards.

What is a knowledge-based chatbot?

A knowledge-based chatbot is an AI-powered chatbot that fetches answers only from the provided source. The source can be FAQs, help center articles, user manuals, troubleshooting guides, and company policies. Instead of simply displaying a link to the relevant article, a knowledge-based chatbot digs into the source and provides the customer with answers in a conversational format.

Unlike traditional chatbots that rely on predefined formats and scripts, a knowledge-based chatbot uses machine learning and natural language processing to retrieve the answers in real-time during a live interaction. This helps the business bridge the gap between customers and the knowledge base, creating a high-value conversation.

Working of a knowledge-based chatbot

A knowledge-based chatbot operates in four main steps:

• Natural Language Processing (NLP): The chatbot evaluates the customer's message to find the intent of the user and context behind their query.
• Knowledge Retrieval: It then maps the query to the relevant source, i.e., articles or documentation related to the customer's request.
• Response Generation: The chatbot then creates a clear, concise, and accurate statement in response to the customer's query.
• Continuous Learning: The chatbot analyses customer interactions and feedback to improve its accuracy, identify knowledge gaps, and refine future responses.

Applications Across Industries

Knowledge-based chatbots are widely used in various industries:

• Customer Support: Answering FAQs, handling returns, refunds, and troubleshooting issues.
• E-commerce: Providing product recommendations, tracking orders, and assisting with purchases.
• Healthcare: Offering appointment scheduling, medication information, and post-treatment guidance.
• Banking and Finance: Assisting customers with account information, loans, and financial products.
• Human Resources: Helping employees with leave policies, payroll, onboarding, and company procedures.
• IT Support: Resolving technical issues, password resets, and software installation guidance.