Top 10 Types of AI Chatbots and How to Choose the Right One

March 13, 2024

Top 10 Types of AI Chatbots and How to Choose the Right One

AI chatbot development has seen significant adoption over the years. It is because of the benefits AI chatbots have to offer to businesses. However, it is essential to know that different types of AI chatbots serve different purposes. 

Not every type of chatbot will play the same role in accelerating your business growth. This is because each business has its own objectives and challenges. Some businesses want to enhance customer support, while others want to generate leads for them. The question here arises: how to choose the right AI chatbot for the business?

Today, we will be discussing different types of AI chatbots and their functionality to help you choose what best suits your business. But before that, let’s have a brief introduction to AI chatbots, how chatbots work, and learn some interesting stats about them.

What are AI chatbots?

What are AI chatbots

AI chatbots are software solutions programmed to engage users via text or voice. These AI chatbots engage in human-like conversations utilizing natural language processing and artificial intelligence algorithms. 

They understand user queries and provide relevant responses based on the training data. They are mainly used across websites, mobile applications, messaging platforms, etc., to provide better customer support. According to Relay, 58% of B2B companies employ AI chatbots on their website, while 42% on B2C websites.

How does an AI chatbot work?

AI chatbots utilize several cutting-edge technologies, including natural language processing and machine learning algorithms. We can divide how chatbots work into simpler steps:

  1. The conversation starts when a user types in a message or speaks to a chatbot using the user interface.
  2. Chatbots are programmed to understand the user message by recognizing the keywords to provide the most relevant answer using the NLP technique. 
  3. To respond, chatbots search their database for the most relevant answer.
  4. After successfully finding the most relevant answer, the chatbot responds to the user, which can be seen on the user interface.
  5. The conversation keeps going till the user decides to end it.

It is interesting to note that chatbots keep track of the previous conversation and smartly provide responses according to the context. 

Applications of AI Chatbots

Applications of AI Chatbots

The top AI chatbots of 2024 have become invaluable assets for businesses. However, different types of AI chatbots serve different purposes. Here are some of the primary applications for integrating AI chatbots into your business.

1.Customer Support

One of the best applications of AI chatbots is providing customer support. They are available 24/7 to resolve user queries and provide instant information. It builds trust between the audience and the business by actively answering their questions and promotes loyalty.

2.Appointment Scheduling

Another crucial application of AI chatbots is scheduling business appointments. Mostly, they are found in hospitals and hotels. Customers can easily book appointment slots from the ease of home. It not only saves time but also sends reminders for the scheduled meetings.

3.Lead Generation

Chatbots act as salespersons and provide personalized experiences to your potential clients. They engage with a large audience and have the ability to analyze feedback. Moreover, they are your perfect partner to generate leads and increase conversion rates by promoting your brand.

Top 10 Types of AI Chatbots

Chatbots can be categorized based on their functionality and features. Several types of chatbots are available to overcome your business challenges. It is necessary to know the functionality of each chatbot type so that you can make well-informed decisions when choosing for your needs. Here are the top 10 types of AI chatbots:

1.Menu-based Chatbots

These are the type of AI chatbots that simplifies the user journey. These chatbots utilize a set of buttons to simplify engagements with users. These buttons or options within the user interface enhance the user experience. These chatbots offer a menu or a list that lets users select from provided alternatives instead of engaging via text.

2.Rule-based Chatbots

Most businesses use rule-based chatbots to engage with their visitors. This is because the interactions between users and chatbots are predictable. These chatbots follow pre-defined rules to interact with users and provide relevant responses. It ensures that responses are provided by following the if-then rule. So, it is necessary to build an infrastructure for them with your conditions.

3.Voice Chatbots

Businesses are investing heavily in trend-setting voice bots. There has been a significant adoption of voice chatbots in the last few years. It is because of their ability to engage users more efficiently. They leverage artificial intelligence and natural language processing to provide smart responses via voice. Some popular examples of voice bots are Siri, Alexa, etc. 

4.Keyword recognition-based Chatbots

Keyword recognition-based chatbots operate by recognizing specific words or phrases. They are programmed on a rule-based technique. However, they trigger already-defined responses when the user inputs any specific phrase. These chatbots engage users in conversation by understanding their messages and responding accordingly.

5.Contextual Chatbots

When talking about the types of AI chatbots, contextual chatbots hold significant importance. These are the most advanced chatbot types. These chatbots remember your past conversations and self-improve to provide personalized experiences. They do so by leveraging machine learning algorithms and natural language processing that help to increase user satisfaction.

6.Hybrid Chatbots

Hybrid chatbots are a blend of rule-based and contextual chatbots. They have the ability to engage in effective and seamless communication with users. It acts as a rule-based chatbot when being asked straightforward questions. Moreover, their contextual behavior enables them to provide relevant responses based on past conversations. These are available round-the-clock to provide instant responses and improve customer satisfaction.

7.Entertainment Chatbots

Entertainment chatbots are different from other chatbots because of their purpose. Their aim is not to provide support to visitors but to engage them in interesting games and quizzes. Media and entertainment are two fields that can benefit from these AI chatbots. People turn to them when they want to relax after a tiresome day. While employing these chatbots, it is necessary to consider whether they are aligning with your brand identity or not.

8.Support Chatbots

Support chatbots are one of the most used types of AI chatbots. Businesses incorporate them into their websites to provide instant support and resolve their queries. Most of us might have interacted with this type of AI chatbot in our lives. They are solution-oriented and are aware of the FAQs. They gather customer data and efficiently direct clients to the right person for further assistance.

9.Marketing and Sales Chatbot

Marketing and sales chatbots are tailored for direct engagement with customers. They help in lead generation and boosting sales conversion rates. It does so by promoting your brand and products. These chatbots enhance the purchasing process and promptly address customer queries. Industries like e-commerce and SaaS benefit significantly from employing these chatbots due to their ability to streamline marketing and sales activities.

10.Skills Chatbot

Skill chatbots execute user commands through both voice and text inputs. These chatbots are designed to perform a range of tasks, including playing music, making calls, etc. Its voice command feature is useful in situations where users need to access information or perform tasks quickly without being tied down by physical interactions.

How to choose the best AI chatbot for your business?

How to choose the best AI chatbot for your business?

Choosing the right AI chatbot is as crucial as choosing the right AI development company for your unique idea. It becomes more necessary for your business when numerous types of chatbots are available. You need to consider several pivotal factors before choosing an AI chatbot:

1.Define Objectives

The first thing that you need to do is analyze whether you require an AI chatbot or not. Once you get your answer, you have to be clear about what you want to achieve from the AI chatbot. What problems will your AI chatbot solve? It is crucial to have a clear understanding of your objectives as it will help you make well-informed decisions.

2.Brand Consistency

Brand consistency matters the most when choosing the chatbot for your business. Your chatbot must match your brand identity, as it is the first contact point for your potential customers. Moreover, understanding your audience and on which platforms they want to engage with you is also crucial. Your chatbots must be tailored according to your audience to provide them with exceptional support.

3.Chatbot Potential

It is crucial to know the full potential of your AI chatbot. Can it resolve complex queries? Is it good to adopt over time and improve its responses? Can it understand user intent? Questions like these must be considered when choosing an AI chatbot that meets your business goals.

4.Integration Capabilities

You must consider the ease of chatbot integration with your current platforms or systems. It is better to choose an AI chatbot solution that can adapt to your future requirements. It will help businesses to enhance efficiency and streamline processes much more easily.


Security should be prioritized when choosing a healthcare AI chatbot for your enterprise. It is crucial to opt for an AI chatbot that follows the industry’s best standards. It helps to protect sensitive user data and ensures privacy.

Interesting Statistics about AI Chatbots

Interesting Statistics about AI Chatbots

If you are a healthcare business owner, you might be questioning whether users prefer to chat with a healthcare AI chatbot. Will the types of AI chatbots benefit my business? Are other businesses considering using it? You don’t have to worry, as we are going to answer your questions and provide you with some interesting statistics about AI chatbot solutions that will help you make up your mind. Some interesting statistics about AI chatbots are:

  1. Juniper Research reports that AI chatbots will save businesses up to 2.5 billion work hours by 2024.
  2. OutGrow reports that 57% of businesses say that using an AI chatbot helps them generate more ROI with less investments.
  3. Mobile Marketer reports that 40% of millennials interact with chatbots regularly.
  4. Invesp reports that 67% of global users interacted with AI chatbots over the last year.
  5. Juniper Research reports that 75% to 90% of user queries were handled by AI chatbots in 2023.
  6. Clickz reports that the global chatbot market will exceed $994 million by 2024.
  7. Gartner reports that AI chatbots will become the primary source of customer service for all businesses by 2027.


Businesses are looking for ways to maximize their revenues and provide exceptional customer service in this digital era. AI chatbot solutions emerged as a versatile solution to business challenges. It has become a necessity for businesses to integrate AI chatbots into their systems to thrive in a highly competitive business landscape. 

The advancement in technology will only improve their efficiency and make them a must-have tool for every organization. However, it is necessary to consider what types of AI chatbots will best suit your business needs. Choosing the right chatbot will help you and your business grow exponentially.

How can Xeven Solutions help you with AI chatbot development?

Xeven Solutions is not just a services provider but becomes your business partner. We provide end-to-end AI chatbot development services for your business to maximize your revenues and thrive in a highly competitive business landscape. Our highly skilled AI developers team leverages cutting-edge technologies and tools to craft AI chatbot solutions that not only meet your business requirements but exceed your expectations.

About the Author: Taimoor Asghar

Taimoor Asghar is a Technical Content Writer with a passion for emerging technologies, continuously keeping himself updated with the latest industry and technological trends. He ensures that complex concepts are translated into informative pieces, catering to both experts and novices. He crafts engaging narratives through blogs, articles, and how-to guides that captivate audiences and inspire them to delve deeper into the ever-evolving world of tech innovation.
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