[2024] What is a chatbot? We have summarized everything from the mechanism, differences from AI, use cases, vendors to introduction methods!

We will introduce the latest examples and how to use it in your company, so please refer to it!

Recently, the opportunities to see chatbots on LINE etc. are increasing.
However, there may be some people who secretly feel impatience, saying, “Actually, I don’t really understand it very well, but I can’t ask anymore.”
This time, even for beginners who have zero knowledge of chatbots, we will introduce you to the mechanisms and benefits of chatbots, how to use them, vendors, and points to note when introducing chatbots!

If you want to know which chatbot to introduce to your company, please refer to this article that introduces chatbots by purpose .

Contents of this article 

  • What is a chatbot?
    • There are two types of chatbots: AI-equipped (artificial intelligence) and artificially incompetent.
      • 1, Characteristics of artificially incompetent chatbots
      • 2, Features of AI-equipped (artificial intelligence) chatbots
  • Advantages of introducing chatbots
    • 1, available 24 hours a day
    • 2, Feel free to contact us with a familiar chat UI
    • 3, Efficient response to inquiries and cost reduction
    • 4, Simplification of business system
  • Disadvantages of introducing chatbots
    • 1, It takes time and effort to introduce
    • 2, Cost-effectiveness may not match
  • Introducing how to use chatbots and case studies of corporate introductions
    • 1, Kirin Holdings Company, Limited
      • Background of introducing sAI Chat
      • 33% increase in inquiry resolution rate with “FAQ Diet Strategy”
    • 2, Mouse Computer Co., Ltd.
      • Background of introduction of sAI Chat
      • Customer success runs side by side as part of the team
    • 3, Magaseek Co., Ltd.
      • Background of introduction of AI chatbot
      • Just before the manned inquiry, the chatbot provides a one-cushion
    • 4, Manufacturer’s information system department
      • Background of introduction of sAI Chat
      • AI chatbot to reply with the best knowledge
      • Success in one department triggers knowledge management throughout the company
    • 5, Mitsuhide Akechi AI | Entertainment bot for tourist spots
  • 3 points to pay attention to when choosing a chatbot
    • 1, Whether AI (artificial intelligence) is installed
    • 2, Is the installed AI developed in-house or OEM from another company?
    • 3, Is there support before and after introducing a chatbot?
  • In fact, there are many cases where chatbots are not suitable.
    • 1, If ​​the number of FAQs is about 50, a chatbot without AI is sufficient
    • 2, If the number of FAQs is about 50 to 300, you need an AI-equipped chatbot
    • 3, If there are more than 300 FAQs, consider introducing an FAQ system
  • Chatbot summary

What is a chatbot?

A chatbot is a combination of “chat,” which means real-time conversation in short sentences, and “bot,” which means robot, and refers to a program that automatically returns answers to people’s questions on the chat .

Since it is a chat-style Q&A system, it will be operated on the screen of a PC or smartphone. You can often see it on the inquiry page of websites and web services.

There are two types of chatbots: AI-equipped (artificial intelligence) and artificially incompetent.

When referring to chatbots, it is said that “chatbots are programs in which humans and AI converse, ” but this is a misunderstanding.

All chatbots appear to have artificial intelligence, but not all chatbots actually have artificial intelligence (AI).

There is also a model called “artificially incompetent chatbot” that does not have AI installed.

[Chatbots are broadly divided into two types]
・Artificial incompetence type
・AI-equipped type (artificial intelligence type)

Let’s take a look at the features of each model.

1, Characteristics of artificially incompetent chatbots

Chatbots without artificial intelligence are called “rule-based” or “scenario-based” . This system consists of human beings setting the rule in advance that “if the word A is included, reply B” .

An artificially incompetent chatbot realizes simple dialogue by setting keyword responses and scenario branching.

2, Features of AI-equipped (artificial intelligence) chatbots

AI-equipped chatbots are chatbots that incorporate so-called machine learning. Here is a model that is well known in the world.

The flow of returning “prepared answers” to “assumed questions” is common to the rule-based scenario type, but AI-equipped chatbots can also handle more complicated rules .

AI-equipped chatbots will learn from their usage history and return more accurate answers .

Advantages of introducing chatbots

Chatbots have four advantages, which are explained below.

  1. Available 24 hours a day
  2. Feel free to contact us with a familiar chat UI
  3. Efficient response to inquiries and cost reduction
  4. Simplification of business system

I will briefly explain each.

1, available 24 hours a day

With a chatbot, you can respond to customer inquiries 24 hours a day .

A 24-hour response to inquiries leads to improved customer satisfaction.
Even companies that say, “It is difficult to provide 24-hour service due to high labor costs,” can use chatbots at low cost.

2, Feel free to contact us with familiar chat UI

Chatbots are designed with an interactive UI, making it easier for users to contact them.

In the conventional inquiry format using telephone and email, it takes time to make an inquiry, and it has the disadvantage of being inconvenient.

[Conventional inquiry flow]
1, User searches for an inquiry form
2, Types a question into the inquiry form
3, Waits for an operator to respond to the call

 

By introducing a chatbot, users will be able to easily ask questions at any time from the website or LINE .
The positive experience of being able to easily resolve doubts leads to improved customer satisfaction and lowers the hurdles to inquiries.

[Inquiry flow after introduction of chatbot]
1. Chatbot automatically responds to most inquiries
2. Telephone inquiries only for complicated inquiries that chatbot cannot respond to

3, Efficient response to inquiries and cost reduction

In addition, chatbots can automate responses to inquiries, which has the advantage of improving work efficiency.

Busy season operators are constantly bombarded with similar inquiries. Even if we try to handle inquiries efficiently, there is a limit to the amount of incoming calls that humans can handle.

Companies that have introduced chatbots can automate responses to frequently asked questions , reducing the number of incoming calls to call centers. As a result, the burden on the call center can be reduced, and cost reduction can be achieved.

Companies that have introduced AI chatbots developed by our company have received a great many success stories, such as improving the call reception rate from less than 70% to 100% .

4, Simplification of business system

Not many vendors mention this point, but the chatbot UI is simple enough that even users with low internet literacy can easily operate it .

For companies that needed to operate complicated and difficult-to-understand business systems such as “attendance input” and “daily report input”, the actual man-hours and psychological hurdles must have been high. Such a UI is one of the reasons why business systems do not take root .

If you enter daily reports via chatbot, you can complete various tasks with just a few taps. In addition to making it easier for the business system to penetrate the company, it can be directly connected to the improvement of business efficiency.

 

As introduced above, chatbots are a very useful tool that any company can benefit from regardless of industry.

From 2020 to 2021, I think it was a year when the working environment changed so rapidly as never before. Remote work is also recommended at our company, and we no longer meet with many employees.

For this reason, the number of places where chatbots, which are useful for improving the efficiency of daily work, are active continues to increase. Starting with changes in the working environment, chatbots will continue to gain more and more attention.

Disadvantages of introducing chatbots

Our company also provides an AI chatbot ” sAI Chat ” developed in-house, so I don’t want to publish it too much, but of course chatbots also have disadvantages.

1, It takes time and effort to introduce

In order to introduce a chatbot, it is necessary to create a data set of answer sentences and question sentences called FAQ. In the case of an AI chatbot, the AI ​​must pre-learn similar expressions for each question sentence.

Since it is necessary to continuously add and modify the FAQ even after the introduction, it is necessary to set up a dedicated person in charge.
These tasks often take more time than management expects, so lack of an operational system is one of the causes of project failure.

At our company, we can create FAQs, learn about AI, and even operate after introduction on behalf of the company, making the project successful even for companies that cannot spare people.

2, Cost-effectiveness may not match

As explained in the previous chapter, AI-equipped chatbots can greatly improve the efficiency of customer support operations, reducing burdens and cutting costs.

However, when introducing a chatbot to a company that does not receive many inquiries in the first place, or when using a chatbot for marketing purposes, it may fail due to the lack of effectiveness against the introduction cost.

Introducing how to use chatbots and case studies of corporate introductions

Next, I would like to introduce some examples of chatbots being used and examples of corporate introductions. Imagine what kind of scene you should use a chatbot.

1, Kirin Holdings Company, Limited

Kirin Holdings Company, Limited has introduced sAI Chat, an AI-equipped chatbot, since 2018, and is operating the chatbot with the aim of expanding customer contact points and improving operational efficiency.

Background of introducing sAI Chat

According to the person in charge, when comparing each vendor, in addition to cost and usability, “the ability to operate in-house” was considered as a condition.
However, I was worried about doing all the operation processes in-house, so I found Sciseed when I was looking for a vendor that I could build a good relationship with.

The simple operability and ease of maintenance were evaluated, and it became the flow to introduce sAI Chat. From Sciseed, Customer Success supports and accompanies operational improvements.

33% increase in inquiry resolution rate with “FAQ Diet Strategy”

In the case of Kirin, the event that left an impression on me was the “FAQ diet strategy” that was implemented at the time when the chatbot resolution rate was declining. When we reduced the number of FAQs, which were nearly 800 at the time, to less than 200, we were able to increase the resolution rate by 33%.

2, Mouse Computer Co., Ltd.

Mouse Computer Co., Ltd., which provides a made-to-order business for desktop PCs, increased the self-solving rate of users by introducing sAI Chat, and was able to expose and solve customer service issues.

Background of introduction of sAI Chat

When we asked the person in charge about the background to the introduction of sAI Chat, they answered, “While there are no major differences in the functionality of chatbots from vendor to vendor, the deciding factors were our technical strengths, such as the AI ​​engine, and the know-how that was suitable for our company.”

Inquiries for PC support branches intricately depending on user attributes, purpose of use, product specifications used, etc. I think that being able to provide the optimal solution in such a situation led to the selection of Sciseed.

Customer success runs side by side as part of the team

We offer a customer success plan for those who subscribe to sAI Chat.
This is because it is not enough to introduce a chatbot once, and it is necessary to continue to improve the flow of traffic and brush up the FAQ regularly.

As a chatbot vendor, we understand the importance of chatbots, so we propose various measures every day to satisfy as many customers as possible.

3, Magaseek Co., Ltd.

Magaseek, a fashion mail-order site that has introduced an AI chatbot developed by our company, has succeeded in reducing the number of inquiries by 26% annually by introducing a chatbot to the help page within the site.

Background of introduction of AI chatbot

In the women’s apparel industry, the number of inquiries fluctuates depending on the season, and there are many events that require individual responses, such as the year-end and New Year holidays.
Users using MAGASeek contacted us from the inquiry form each time , so there was a problem in improving the efficiency of inquiry work. At the same time, I also felt the limitations of manned support.

Just before the manned inquiry, the chatbot provides a one-cushion

By introducing a chatbot, we no longer have questions that “need not bother to contact the customer center”. Chatbots now solve customers’ questions
before they reach the Magaseek call center .

In addition, we were able to respond to inquiries 24 hours a day, and the benefits of introducing a chatbot were enormous. As a result, we have succeeded in reducing the number of inquiries by 26% annually , and free resources can be allocated to other business divisions.

You can also view the following materials for introduction examples of the fashion EC site “Magaseek” and specific improvement data. If you would like to know more about the specific effects of introducing chatbots, please fill out the document request form.

4, Manufacturer’s information system department

The next use case is that of a major consumer goods manufacturer that has successfully improved the operational efficiency of its help desk by making effective use of its internal knowledge base through the introduction of an AI chatbot.

Background of introduction of sAI Chat

The Information System Department, which introduced Sciseed’s sAI Chat, received dozens of inquiries every day.

After analyzing the content of the questions, 70% of them could be understood by looking at the portal site. It turned out that most of the employees have a common problem that they can’t find or find the information they need.
Department personnel were overwhelmed with similar questions every day.

AI chatbot to reply with the best knowledge

Therefore, we installed an AI chatbot on the internal inquiry page, and automatically responded to the question on the portal site with the URL .
A chatbot equipped with an AI engine can properly process a variety of questions from employees, and has succeeded in reducing the number of inquiries by 30%.

Success in one department triggers knowledge management throughout the company

Thanks to the use of AI chatbots in the information system department, the number of inquiries received on a daily basis has continued to decrease. The success story spread throughout the company, and eventually led to the introduction of the system to various departments such as the general affairs department and the legal department.

As a medium-term goal, the company is working to utilize AI chatbots for knowledge management throughout the company.

In the current situation where remote work is forced, AI chatbots are even more active as a means of reproducing a mechanism that allows each employee to solve questions on their own.

5, Mitsuhide Akechi AI | Entertainment bot for tourist spots

Mitsuhide Akechi AI is a chatbot developed to propose and support new sightseeing experiences on LINE official accounts. As a tour measure for tourists, “mystery solving” is installed as sub-content, and tourists can enjoy the content while obtaining recommended sightseeing spot information.

Mitsuhide Akechi AI is a chatbot developed in cooperation with 14 local governments in Kyoto, Gifu, Shiga and Fukui prefectures. We are working to revitalize tourism by attracting tourists and encouraging excursions between regions through wide-area cooperation.3 points to pay attention to when choosing a chatbot

When choosing a chatbot, pay attention to three points.

  1. Presence or absence of AI (artificial intelligence)
  2. In-house development and OEM of other companies when there is AI
  3. Do you have pre- and post-implementation support?

I will explain the contents of each!

1, Whether AI (artificial intelligence) is installed

As introduced at the beginning, there are two types of chatbot services, one without AI and one with AI. Basically, AI-equipped chatbots have higher functionality and are upwardly compatible with chatbots without AI.

However, AI-equipped chatbots are more costly than non-AI chatbots, so they can be said to be for companies with a large number of inquiries.
It can be said that it is necessary to judge whether AI is really necessary in light of the issues and content that the company wants to solve.

2, Is the installed AI developed in-house or OEM from another company?

If you want to introduce an AI-powered chatbot service, the engine of the AI ​​itself will be the point of comparison. Regarding AI engines, let’s understand that they are divided into companies that develop AI engines in-house and companies that use other companies’ engines as OEM .

The greatest strength of the service of a company that develops its own AI engine is that it can grasp the logic of AI and improve its accuracy. In addition, since it is possible to modify the core part of AI, it is possible to flexibly respond to the needs of the introducing company.

3, Is there support before and after introducing a chatbot?

After introducing a chatbot, it will not be effective if no operational measures are taken. In order to fully demonstrate the effectiveness of chatbots, preparation before introduction and operation after introduction are extremely important.

Chatbots have a lot of little tricks that make them easier for users to use, so a company with strong support is better than a company that just provides tools .

With sAI Chat provided by our company , we will provide a one-stop service from introduction to operation support. Please contact us from the sAI Chat inquiry page for the chatbot service that does not require the time and effort of the person in charge .

In fact, there are many cases where chatbots are not suitable.

I have explained chatbots so far, but in fact there are cases where chatbots are not suitable depending on the usage .

Since chatbots are interactive question-and-answer systems, they are limited in the amount of information that can be displayed on the screen after the conversation is over.
Therefore, when the number of FAQs sent to the company (registered in the chatbot) exceeds a certain number, there are cases where another system that is not a chatbot actually becomes the optimal solution.

  1. When about 50 FAQs are registered: Scenario-type chatbot
  2. When the number of FAQs to be registered is about 50 to 300: Artificial intelligence type chatbot
  3. If you register more than 300 FAQs: FAQ system with artificial intelligence

1, If ​​the number of FAQs is about 50, a chatbot without AI is sufficient

When using chatbots for e-commerce sites that handle single items or for simple service inquiries , chatbots without AI are sufficient.

In the above case, the number of questions from users and the number of branching questions will be about 50. Even a chatbot without artificial intelligence can provide sufficient customer service, so it can be judged that there is no need to raise a high budget to introduce an AI-equipped chatbot.

However, if you plan to increase the number of products in the future, or if you plan to launch a different service as a new business , you may consider introducing an AI-equipped chatbot from now on.

2, If the number of FAQs is about 50 to 300, you need an AI-equipped chatbot

Introduce an AI-equipped chatbot when there are a large number of inquiries from customers, or when the content of inquiries diverges.
In our company’s case, this applies to “large-scale services / EC sites” and “response to inquiries by all departments in the company”.

The more questions you anticipate, the more ways you can express your inquiry. Chatbots without artificial intelligence cannot respond to a huge number of questions and variations in wording/expression of questions .

This is where artificial intelligence (AI) is needed.
A chatbot equipped with artificial intelligence learns the best way to respond on its own , becomes smarter the more it is used , and can respond to customers 24 hours a day .

3, If there are more than 300 FAQs, consider introducing an FAQ system

If there are more FAQs than the cases introduced so far, and more than 300 cases, an AI-equipped FAQ system is more suitable than a chatbot .

A chatbot is a service that solves inquiries by interacting with customers. While there are advantages such as “easily inquiring”, “feeling of being treated kindly”, and “a sense of familiarity”, there is a limit to the information that can be displayed on the screen .

If you need to present the best answers from more than 300 FAQs, we recommend introducing an FAQ system that can handle a large number of inquiries more quickly . Please refer to the example of the FAQ system that we actually developed.

If you can’t decide which system is better, we also have a free “Web consultation”, so please use it. We also have a detailed explanation of the FAQ system in this article , so be sure to check it out.

Chatbot summary

This time, for those who are new to chatbots, I introduced the mechanism of chatbots, which have been attracting attention in recent years, how to actually use them, and points to note when introducing them.

As you can see from the usage methods and introduction examples, it can be used in various situations, from customer correspondence to internal work. Also, since it can be linked not only with HP but also with messaging apps, it can be used relatively easily.

There are now more than 80 types of chatbot services, and it is becoming difficult to understand “How are they different?” and “Which service is best suited for your company?”

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