How Do Chatbots Work: In-Depth Guide

Chatbots are very useful to:

• relieve the support department;
• process customer requests faster;
• collect information about orders. 

Chatbots are usually connected to chat rooms in messengers or to the website. 

But ordinary chatbots can not fulfill all tasks. For example, they sometimes need help understanding customers' goals by:

• answering inappropriately;
• breaking down;
• transferring the customer to a support employee.

If a chatbot can't cope and the support staff is already busy, you can go the other way - develop a chatbot based on artificial intelligence. It can maintain a conversation and logically answer non-standard user questions. The methodology of chatbots uses machine learning to identify communication patterns. Through constant interaction with people, they learn to:

• imitate real conversations;
• respond to verbal or written queries to help find answers. 

Because chatbots use artificial intelligence (AI), they understand language, not just commands. Thus, they become smarter after each dialog. It's worth noting that in addition to chatbots with AI, some operate based on programmed multiple-choice scenarios. For example, option A leads to option B, and so on. 

Read on for our article to answer the question: “How do chatbots work?”

Chatbot Architecture: Behind the Scenes

Chatbots have become integral to our digital lives. They provide automated assistance in various domains, from customer service to virtual assistants. But, our seamless interactions with these chatbots result from complex and sophisticated architecture. It always works behind the scenes. AI-based chatbot processes have several advantages:

• Understand typical conversational language.
• Keep the context of the conversation rather than communicating specific phrases.
• Learn independently, so they don't need to add as many variations of phrases and responses as regular bots.
• Collect information from all open sources and respond to users based on them. This happens in seconds, so you can communicate with such bots in real-time.

As a rule, all bots are designed to solve the same tasks. The question is how quickly and qualitatively they can close them.

Mostly, chatbot architecture depends on the bot's capabilities: the NLU engine quality and human speech recognition quality. So, for example, some bots can:

• work equally well with CRM systems' online enrollment services;
• automate such processes as online consultation, tech support, and much more. 

Conversations with business bots usually take no more than 15 minutes and have a specific purpose. Travel chatbots provide information about flights, hotels, and tours. The other helps to find and make relevant information for lawyers. Google Assistant finds information. Bookworm bot helps with literature.

Let's move on to looking at architectural patterns. It is important to remember that there is no one-size-fits-all. You must use an approach corresponding to the chatbot's application area. Read on to learn more about chatbot architecture.

Intention - context

When developing a bot, you must first determine the user's intentions that the bot will process. Intent is what the user wants to do. Expression (entity) is a request by which the user describes the intention.

Let's say we need to create a chatbot with an alarm function. Let's call the class for processing this intention ALARM_SET. The user can express the intention with different expressions:

• "Set alarm for 10 am".
• "Wake me up at 10 a.m."
• "Enable a reminder when it's 10 a.m.".

When a user creates a request under a category, ALARM_SET becomes triggered, and the chatbot generates a response.

Context is the real-world entity around which the conversation revolves in chatbot architecture. The request must have an entity to process and generate a response. In the example above, 10 a.m. is the context in which the alarm clock works. Most chatbots are usually designed this way. 

Template-based approach

The easiest way to create a bot is to use templates, the rule-based chatbot approach. Its essence is to specify a possible incoming user question and its associated answer.

When a chatbot receives a message, it goes through all the user's templates until it finds one that matches its message. This feature of chatbot architecture then generates an appropriate response. The special markup language AIML is good for writing templates. The selection of the correct answer can be done in different ways:

• both use classical if-else;
• by using machine learning models.

For template-driven responses, the ChatScript engine is often used. It is conveniently embedded in a natural language processing pipeline with speech tags and synonyms. This improves accuracy when matching templates and user input. The library does not use machine learning algorithms or third-party APIs, but this can be customized.

Classification of intents

In narrowly focused domains, a template architecture is ideal. But as soon as you need something more complex from a bot, you cannot use the template approach. Otherwise, you will have to code every condition that the bot could answer, and such code is hard to maintain: you will start to have problems with overlapping patterns, and accuracy will decrease.

The best backbone options of chatbot architecture for chatbots dealing with many tasks are:

• modern neural network architectures with long short-term memory (LSTM);
• reinforcement learning agents.

Machine learning is often used with a classification algorithm to find intents in natural language. Such an algorithm can use machine learning libraries such as Keras, Tensorflow, or PyTorch. Another option is to use one of the cloud APIs. Cloud APIs are usually paid, but they provide ready-made functionality. So development will be faster and easier. The library does not use machine learning algorithms or third-party APIs, but you can customize it.

Methodology of Chatbot: How It Operates

Chatbots mainly use artificial intelligence to communicate with users. They provide relevant content and up-to-date offers. They function based on a set of instructions or use machine learning. The functionality of a chatbot that functions based on instructions is quite limited. It is often designed to answer fixed questions. Thus, if a person asks a question in a different way than the program provides, the bot will not be able to answer.

The intelligence level of the bot depends solely on how it is programmed. A chatbot database structure based on machine learning works better because it understands the commands and the language. Therefore, the user doesn't have to type exact words to get relevant answers. In addition, the bot learns from customer interactions and is free to solve similar situations when they arise. The chatbot gets smarter after each dialog.

Apart from artificial intelligence-based chatbots, another one is useful for marketers. It is simpler, so any enthusiast and marketing novice can work with it. This chatbot does mass mailings. Brands are using such bots to empower email marketing and web push strategies. Facebook campaigns can increase audience reach, boost sales, and improve customer support. With some services, you can use a chatbot without code knowledge. Read on to learn how to start messenger marketing. You can read more about the methodology of chatbots below.

NLP algorithm 

Natural Language Processing (NLP) is a machine-learning technology. This allows computers to interpret, manipulate, and understand human language. Organizations today have large amounts of voice and text data from various communication channels such as:

• emails;
• text messages;
• social media news feeds;
• video;
• audio, and more. 

They use NLP software to automatically:

• process this data;
• analyze the intent or sentiment of the message;
• respond to human communication in real-time. 

Companies use this method for several automated tasks, such as:

• Processing, analyzing, and archiving large documents.
• Analyzing customer feedback or call center records.
• Launching chatbots for automated customer service.
• Answering "who, what, when, and where" questions.
• Text classification and extraction.

This automated chatbot process helps reduce costs and saves agents from wasting time on redundant inquiries. This also increases customer satisfaction.

NLU algorithm 

The topic of NLU is very much in demand right now. This technology enables human-computer interaction by interpreting natural language. It extracts the meaning of the text and determines the context. This allows computers to understand commands without the formalized syntax of programming languages. This already simplifies and improves the quality of human communication with a particular system.

With the help of NLU algorithms, bots solve two main tasks: 

• Determining the communicative intention (intent) of the speaker;
• Recognizing the entities mentioned.

NLU is necessary for the bot to recognize live human speech with mistakes, typos, clauses, abbreviations, and jargonisms. For example, it will understand if a person says "NY" instead of "New York" and "Smon" instead of "Simoon".

Chatbot Database Structure

In the age of AI-driven interactions, chatbots have emerged as invaluable tools. They provide:

• instant assistance;
• streamline customer support;
• enhance user experiences across various digital platforms. 

These conversational agents appear seamless and effortless in their interactions. But the real magic happens behind the scenes within a meticulously designed database structure. This database structure is the cornerstone of a chatbot's functionality. It acts as the digital brain that powers its responses and decision-making processes.

Imagine a chatbot database structure as a virtual assistant ready to respond to your every query and command. You probably seeking information, making transactions, or engaging in casual conversation. So, the chatbot's effectiveness hinges on its ability to access, process, and retrieve data swiftly and accurately. This is precisely where the chatbot database structure comes into play. They serve as the foundation upon which conversational AI systems are built.

Conversation History

Chatbots maintain a record of conversation histories to ensure seamless and context-aware interactions. This log includes user messages, timestamps, and the chatbot's responses. By storing this information, the chatbot can:

• reference prior messages;
• understand the flow of the conversation;
• provide more coherent and relevant responses as the dialogue progresses.

Context Management

Effective content management is essential for maintaining coherent conversations in the chatbot process. A context management system tracks active intents, entities, and conversation context. This allows the chatbot to understand follow-up questions and respond appropriately. For instance, a user can inquire about flight availability and pricing. Then, the context manager ensures that the chatbot understands the user is still interested in flights.

Security and Privacy

Robust security measures should be implemented within the database structure. You need it to ensure the safety and confidentiality of user data. This includes:

• encryption;
• access controls;
• compliance with data protection regulations like GDPR or HIPAA.

newo.ai: Innovating Conversational AI

In the dynamic realm of chatbot architecture, where virtual assistants and chatbots are everywhere. They transform how businesses engage with customers, and newo.ai stands out as a pioneering force. With a relentless commitment to innovation and a passion for redefining the boundaries of what AI-driven conversations can achieve, newo.ai is at the forefront of this transformative technology. Key Innovations by newo.ai are:

• Advanced NLP Models. These models enable more natural and context-aware interactions. They make users feel like they are conversing with a human agent.
• Multimodal Conversations. This innovation allows chatbots to transition between text, voice, and visual inputs seamlessly. It provides a truly immersive and adaptable user experience.
• AI Learning and Continuous Improvement. Our methodology of chatbot employs reinforcement learning techniques. They improve over time based on user interactions, feedback, and changing contexts.
• Privacy and Security. Our AI solutions adhere to the highest data protection standards. So, sensitive information is stored with the utmost care and compliance with relevant regulations.

As conversational AI evolves, our company, newo.ai, pushes the boundaries of what is possible. So stay tuned for more updates.

Conclusion

NLP, NLU, and machine learning power smart chatbot process. The bot extracts keywords from a message and digitizes them. It then responds to the customer based on its knowledge. The main difference between AI-based and regular chatbots is that they can maintain a live conversation and better understand customers. If you are a company looking to harness the power of chatbots and conversational artificial intelligence, you have a partner you can trust to guide you through this exciting journey - newo.ai. With its cutting-edge innovations, newo.ai is at the forefront of conversational AI. So contact us without hesitation for a free consultation.

FAQs 

• How do chatbots understand human language?

Chatbots understand human language using Natural Language Processing (NLP) and machine learning. NLP breaks down language, and machine learning models recognize patterns and intents.

• Can chatbots learn from interactions?

Chatbots can learn from interactions through reinforcement learning. It improves their responses based on user feedback over time.

• What is dialog management in chatbots?

Dialog management in chatbots controls the flow of conversations. It ensures coherent and context-aware responses using rule-based systems and machine learning.

• How do chatbots personalize responses?

Chatbots personalize responses by using user data, context, and feedback, tailoring interactions to individual preferences and needs.