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Chatbots vs. virtual assistants – What’s the difference?

Updated: January 10, 2024
Chatbots vs. virtual assistants – What’s the difference?
Chatbots vs. virtual assistants – What’s the difference?

Executive summary

How many times have you found AI tools popping up to help you with your flight booking or shopping from an e-commerce site? Call yourself blessed or blazed; you are in an era stormed by artificial intelligence or AI. It is revolutionizing human interaction with technology. In this wave of change, chatbots and virtual assistants are leading us towards a reality that still feels surreal. But are these two the same? If not, then what is the difference? Given a choice to choose the best, who will win in the war: ‘Chatbots vs Virtual Assistants’? This blog will attempt to solve the riddle. In the end, you can pick your champ. So, hop on as we dive deep into the sea of information.

What is a chatbot?

Chatbots can be defined as your pally virtual buddies who are always keen and prepared to answer almost all your questions as accurately as possible. The queries can be about booking a reservation, asking about the availability of a product or service, and similar tasks. Chatbots can also troubleshoot a problem. They are super-efficient bots extending digital assistance. Thus, many businesses across industries are employing chatbots to interact with customers in human-like language. Often it is in a text or an audio format. In the realm of artificial intelligence, chatbots function similarly to a fast-food drive-through: consistently fast, efficient, and friendly. Here are a few key points to understand what a chatbot is and its functions.

  • Smart suggestions:  Despite facing an unprecedented query or problem, AI chatbots are intelligent enough to stay engaged in a conversation uninterrupted.
  • Information acquisition tool: Often, chatbots are employed to extract information by understanding the intent of the user’s conversation. It can thus help boost lead creations.
  • Round-the-clock customer support and engagement: The main purpose of chatbots is to interact with clients at all times and take the load off the human customer support team. They are ready to respond promptly to the customers’ usual inquiries. 

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What is a virtual assistant?

Imagine how hassle-free your life would be if you had a digital personal assistant (PA). This smart PA could read your mind and predict your every move. Thus, you can consider virtual assistants as digital-era personal butlers. They can oversee every minor to complex task, from appointment scheduling to managing your smart home. A virtual assistant can be defined as a software-enabled PA designed to help you in day-to-day jobs.  In most cases, it can function like a personal human assistant.

You can find an AI-powered virtual tool to assist you with your everyday tasks or get a quick answer to your questions. Technically speaking, virtual assistants are software applications that aid organizations with several admin jobs, such as setting up notifications or appointments, sending or responding to emails etc. They are useful for attending to requests from people who want their issues fixed immediately, minus human intervention. A few key features of virtual assistants are as follows:

  • Better productivity and customer care: Many organizations employ virtual assistants to boost productivity and help their human resources and customers.
  • Address a wide range of client needs: Siri, Alexa, and Cortana are just a few well-known virtual assistants. Their widespread utility in people’s everyday lives is driving their rising popularity. 
  • Relieve every day’s rigmarole: Improving day-to-day living is a goal of the many virtual assistants out there. They aim to alleviate burdens, streamline processes, and provide entertainment.

Differences between chatbots and virtual assistants

Now, you have a fair idea about a chatbot and a virtual assistant. It won’t be wrong to say that both are intriguing; no wonder these two AI-powered tools are often used interchangeably. Though they might sound alike, they are pretty dissimilar. The main distinguishing factor between them lies in their design and purpose of use. When the battle is about chatbots vs. virtual assistants, understanding the key differences helps. Here is a table, simplifying that.

CriteriaChatbotVirtual Assistant
Primary FunctionAutomated, scripted responses to user queriesPerform tasks and assist users with various needs
Interaction TypeText-based, often in a specific domainVoice or text-based, covers a broader domain
Intelligence LevelUsually rule-based or simple AIAdvanced AI, capable of learning and adaptation
ComplexityRanges from simple to moderately complexGenerally more complex
Use CasesCustomer service, FAQs, transactional tasksPersonal assistance, scheduling, information retrieval, controlling smart devices
CustomizationLimited customization based on the domainHighly customizable to user preferences
User EngagementTypically short-term, task-specificLong-term, personalized interaction
IntegrationOften integrated into websites or appsIntegrated into devices or operating systems
ExamplesWebsite support bots, chat widgetsSiri, Google Assistant, Alexa

AI virtual assistant vs. chatbot: How does it work?

So far, we have discoursed and understood that in a tug of war related to virtual assistants vs. chatbots, though they might appear seemingly similar, they are different. You may consider them buddy cousins with unique talents, adding to their distinguished features. 

Chatbots can be defined as your focused expert conversationalists. Often, they excel at doing specific tasks within a specific domain. Acting as virtual reps, they are prepared to communicate by voice or text to answer frequently asked questions, assist customers, or expedite the purchase process. Picture this: a customer care representative is on hand around the clock via your website or messaging app, poised to answer any query you may have promptly and precisely.

Consider virtual assistants (VAs) as your personal concierge who work as multifaceted wizards. Ask them to handle a broader range of tasks instead of restricting them to just conversations. You can expect seamless performance from VAs, from scheduling appointments, setting reminders, managing important dates on the calendar, controlling several smart devices, etc. These intelligent digital agents are skilled in giving proactive recommendations based on your liking. A virtual assistant at your disposal gives you the confidence of having a super-organized PA, making your life a tad easier.

Armed with such incredible features, both chatbots and virtual assistants leave most of us pondering how these two technological marvels work? Any guesses? They tap into the power of AI, NLP, NLU and ML. Their exceptional intelligence and adaptability result from the technologies that allow them to interpret human language, grasp context, and gain insight from interactions.

Which one should you choose: Chatbot or virtual assistant?

Today, two of the most popular AI technologies introduced across many sectors are chatbots and virtual assistants (VAs). Each has its own advantages and skills. Businesses and organizations with an online presence are jumping on this bandwagon to use AI-powered chatbots and VAs for anything, ranging from work automation to better customer service and overall efficiency gains. Thus, it is beyond a doubt that chatbots and virtual assistants can be boons for their users. Nevertheless, you should pick the one that is most suited to your domain.

Why choose chatbots? 

If you must select chatbots to integrate into your digital business, you must consider them task-oriented assistants. Keep in mind that they are designed to do specific tasks. Their spectrum of jobs can be as simple as answering frequently asked questions (FAQs), extending customer support for your brand, or even a tad intricate task like completing routine transactions. Businesses that deal with a large number of customers often might benefit significantly from using chatbots because of their consistency in responses and ability to do repetitive tasks. Their primary advantages are round-the-clock availability, prowess as cost-effective solutions, scalability to handle high traffic and scope of personalization.

Benefits of chatbots

Chatbots worldwide are already providing a plethora of benefits to the businesses that have introduced them into their system. Here are a few key perks.

  • 24/7 availability: Now, providing 24/7 uninterrupted customer support is possible for almost any business with a digital presence. Thanks to chatbots, which are helpful for enterprises that operate around the clock.
  • Cost-effectiveness: Despite all the tasks they do, surprisingly, compared to virtual agents chatbots are relatively inexpensive to develop and deploy. This USP makes them a good prospect for businesses with restricted budgets.
  • Scalability: Without tiring under the strain, chatbots can process a flood of customer requests. This feature makes them a perfect fit for high-traffic websites and apps.
  • Personalization: One of the most striking advantages of the new-age chatbots is the immense scope of personalization. It can provide an enhanced tailored experience for each user. It leads to satisfied and loyal customers.

Why choose virtual assistants?  

Those opting for virtual assistants for your business treat them as multifaceted buddies. They can assist you by rendering broader capabilities beyond task automation. AI-powered virtual assistants can manage calendars, schedule appointments, set reminders, make travel arrangements, and even control smart home devices. VAs provide a more personalized experience, anticipating user needs and adapting to individual preferences. Businesses choose them for their plethora of perks, including proactive assistance and suggestions, more comprehensive tasks and capabilities, seamless integration and their ability to embrace changes over time and transform.

Benefits of virtual assistants

As technology evolves, virtual assistants are not limited to being tools to answer questions and provide basic information. Thanks to advanced AI algorithms, virtual assistants constantly learn and adapt from user interactions and manage complex tasks. Here are some benefits of virtual assistants.

  • Proactive suggestions: Virtual assistants today utilize advanced ML and NLP algorithms to grasp conversation context and meaning. They can analyze emails, calendars, and other data sources. Thus, they can anticipate your preferences and recommend actions beyond keyword-based answers.
  • Heightened inclusivity and accessibility: Virtual assistants are progressively integrating features such as screen readers, voice recognition, and multilingual support. It enhances their accessibility to a broader range of users with diverse needs and abilities. It facilitates inclusivity, ensuring everyone can reap the benefits of AI-powered assistance.
  • Hyper-personalization: Virtual assistants are constantly learning and taking insights from your interactions and choices, allowing them to customize your experience. Visualize your VA suggesting an eatery according to your dietary preferences and past dining experiences.
  • Multi-modal interaction: Modern virtual assistants can go beyond text and voice commands. Few can now interpret gestures, facial expressions, and emotions. Thanks to advanced sensors and computer vision technologies. This creates a new natural and intuitive interaction dimension.

Pick a chatbot or a virtual assistant: A comprehensive checklist

Even after understanding and examining chatbots and virtual assistants, if you still need clarification about the right choice, here is a checklist that may help you reach a judicious decision. 

Step 1: Identify your exact requirements:

 Plan your desired goals and clearly outline the job you expect the AI tool to achieve. Clarifying your precise needs will help you decide whether you need to integrate a chatbot or a virtual assistant.

Step 2: Estimate the budget: 

While both of these technological marvels appear as assets for your business, they come with a price. Since virtual assistants have several skill sets, they may demand a high investment. On the contrary, chatbots are usually more cost-effective, primarily if you aim to employ them for task-oriented roles.

Step 3: Analyze the scope of integration: 

Choosing between chatbots and virtual assistants isn’t the end of the job. When integrating the AI tool with pre-existing systems and devices, you must take note of the extent and needs of the integration.

Step 4: Assess your user experience

 One of the primary reasons for integrating a VA or chatbot is to improve your customer experience and engagement. Evaluating the significance of your target audience’s need for proactive support, customization, and natural language comprehension is therefore essential.

Step 5: Evaluate scalability: 

Keep a check on how often your customers utilize each of these tools. Time to time analyze the expansion possibilities as well.

Step 6: Take expert advice: 

Chatbots or virtual assistants might appear as a one-size-fits-all solution. However, as a business owner with a digital presence, you must understand they might require some tweaking to suit your users’ needs. Discuss the technical requisites and implementation considerations by consulting with AI professionals.

Step 7: Go for a pilot project: 

Try out a small-scale experiment as a pilot project to evaluate how well the AI tool works before rolling it out company-wide. This will help ensure the chatbot or virtual assistant is up to snuff. 

Why is Yellow.ai the best AI chatbot platform?

Yellow.ai has become an industry leader with its futuristic technological offerings. Our trailblazing AI technology and easy-to-follow designs have caught the attention of businesses with an online presence or interface for improving the customer or user experience. Yellow.ai has turned into the best platform to assist business with AI chatbots. Here is how:

Futuristic AI technology: One of the most striking features of Yellow.ai’s Dynamic Automation Platform is the advanced generative AI technology. When clubbed with a few other pioneering features, you can create smart and implement AI chatbots in no time.

Built for complex conversations: Once every three months, our platform is fed 12 billion talks to train itself. Your chatbot will be able to hold natural, context-aware conversations with users instead of merely delivering pre-programmed replies thanks to this technology.

Multilingual support: If your business caters to multilingual customers, then the AI-powered chatbots by our platform are meant for you. These advanced bots can understand and communicate in over 135 languages and dialects and it can be in the form of text or voice. With our AI chatbots linguistic barriers are a passé..

Effortless integration: With Yellow.ai’s platform, you can integrate chatbots seamlessly with your business systems, which are already up and running. Yellow.ai integrates successfully with your CRM, ERP, and other digital infrastructure, improving operational efficiency and data uniformity.

Tailored and scalable solutions: Our platform allows you to customize the chatbot according to your business needs, brand’s identity and tone. It is also highly scalable, facilitating the evolution of chatbots to meet the growing business demands.

Omnichannel support: Boosting the omnichannel approach, Yellow.ai’s chatbots promote seamless communication across online, social media, and messaging platforms.

DynamicNLPTM technology: Yellow.ai uses DynamicNLP™, an advanced technology that excludes NLP training. Chatbot deployment and activation are fast and easy with this innovation.

No-code interface: Yellow.ai’s no-code interface lets businesses create and launch chatbots without technical skills, opening up AI technology.

After knowing all these advantages of the Yellow.ai platform, do you want to get the best chatbot for your business?

Conclusion

To sum it up, in the battle of chatbots vs virtual assistants, it is difficult to declare a clear winner. Each one has its individual USPs, and picking one over the other takes thorough thinking. As a business owner with an online existence, it is crucial to take into account unique demands, budgets, and customer needs. Efficient operations, happier customers, and more productivity can result from either thing. Making a well-informed selection that supports your company goals requires assessing your requirements and weighing each tool’s benefits. 

Frequently asked questions (FAQs)

Is virtual agent the same as chatbot?

Virtual assistants and chatbots might sound the same, but they are different. The latest ones harness the power of AI. Technologically, chatbots are designed with ML and NLP and can perform simple and repetitive tasks. Virtual assistants are advanced as they are designed with emotional artificial intelligence and NLU. They are sophisticated and perform simple conversational tasks, including helping to conduct business.

What are the benefits of an AI virtual assistant?

AI has revolutionized the entire gamut of virtual assistants. Take the example of Intelligent Virtual Assistants or IVAs. They are often called AI conversational agents and are proficient at processing human inputs, giving exact responses, precise predictions, and accurate decisions.

What are the benefits of using a chatbot?

Chatbots are like having a tireless team member who’s available 24/7, handling customer queries, directing folks to the right department, or even helping customers make a purchase through offering the right offer at the right time in their journey with your brand. The best bit? They can juggle thousands of chats simultaneously, ensuring quick responses and enhancing customer satisfaction. Plus, they’re a treasure trove of data, giving insights on customer behavior and preferences. For businesses, this means streamlined operations, happier customers, and a better bottom line.

What are the different types of chatbots?

Chatbots have different categories. A few examples of various types of chatbots are button or menu-based chatbots, artificial intelligence or AI-powered chatbots, rules-based chatbots, voice-powered chatbots, and the latest in the league is Generative AI or Gen AI chatbots.

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