Chatbot vs. Intelligent Virtual Assistant: 9 Ways to Tell the Difference

Most businesses today are trying to implement a conversational solution to help improve overall Customer Experience. And if you are a Customer Experience or Digital Transformation professional looking for one, you might be a little confused about the difference between ‘chatbots’ and ‘virtual assistants’, among a host of other terms used for such solutions. 



Intelligent Virtual Assistant (IVA) is a term that has entered common usage over the past year as a means of discerning ‘good chatbots’ vs’ bad chatbots’. Broadly speaking, the term ‘chatbot’ is typically used for a solution that can handle only simple, routine queries and FAQs. ‘Intelligent Virtual Assistants’, on the other hand, are more advanced conversational solutions – equipped with NLU (Natural Language Understanding), NLG (Natural Language Generation), and Deep Learning, that enables them to understand and retain context and have more productive conversations with users. 



While the terms ‘chatbot’ and ‘Intelligent Virtual Assistant are still sometimes used interchangeably by customers and businesses alike, there are significant differences between the two in terms of scope, complexity and capability, all of which are far greater in IVAs as compared to chatbots. Chatbots can simulate a conversational experience to a certain extent, but are ultimately constrained by having to ...


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