What Is an NLP Chatbot and How Does It Work?

Powered by Natural Language Processing, NLP chatbots successfully bridges the gap between humans and machines. With NLP technolgy now chatbots can understand user intent and reply in natural human-like texts.

To grasp it better, you can think of it like this:

Pre-NLP era: Chatbots work on rigid pre-defined rules and offer 'yes' and 'no' type answers.

Post NLP: Chatbots can understand nuances, context, and meaning of our everyday language and adapt.

Whether it's answering simple queries or sharing the right knowledgebase as solution NLP based chatbots can handle customer queries with ease.

But how do these NLP chatbots work, and how can you use these solutions for your own business?

This blog post answers it all - from what is an NLP chatbot and how it works to how to build an NLP chatbot and its various use cases, it covers it all.

Let’s dive deep into the NLP chatbots.

What is an NLP chatbot?

Get ready for mind-blowing revelation!

Here’s the secret power behind chatbots that enables them to understand and respond to our language just like a human would: NLP

So, what exactly are Natural Language Processing Chatbots?

Let's break it down!

NLP, or Natural Language Processing, is a cutting-edge technology that allows AI to communicate with humans seamlessly using everyday language (a chatbot that actually feels human!)

The ultimate goal is to read, understand, and analyze the languages, creating valuable outcomes without requiring users to learn complex programming languages like Python.

In today’s world, NLP chatbots are a highly accurate and capable way to have conversations. You can also explore 4 different types of chatbots and see which one is best for your business.

Check this: According to Adweek’s study, 68% of customers prefer conversational chatbots with personalized marketing and natural language processing chatbots as the best way to stay connected with businesses.

Still wondering how natural language processing chatbots are different from rule-based chatbots? Keep reading!

Difference between NLP chatbots and rule-based chatbots

Wondering what sets Rule-based Chatbots and NLP Chatbots apart?

Let's break down the key differences between these two:

Have a look at traditional vs. AI vs. ChatGPT-trained chatbots to get a better idea.

Amazed, right? Let’s dive deep into how these NLP chatbots work.

How does an NLP chatbot work?

In technical terms, NLP transforms the text into structured data by processing a large amount of linguistic data (that computer can understand) - which helps to respond to customers’ queries comprehensively and conversationally.

Let’s understand this more simply. ✨

NLP is equipped with deep learning capabilities that help to decode the meaning from the users’ input and respond accordingly. It uses Natural Language Understanding (NLU) to analyze and identify the intent behind the user query, and then, with the help of Natural Language Generation (NLG), it produces accurate and engaging responses.

Wondering how chatbots understand the query? Let’s break down the process in a nutshell:

1. Domain classifier

The AI chatbot first understands and identifies the domain depending on the keywords. Let’s understand this in detail.

Let’s say you want to handle a large set of conversations from various topics; you may need a domain classifier to segment natural input into the pre-set group of domains. For example, when it comes to Siri, the domain can be music, weather, and more.

2. Intent classifier

As the name suggests, an intent classifier helps to determine the intent of the query or the purpose of the user, as in what they are looking to achieve from the conversation.

For example, let’s say tracking an order or searching for something.

3. Entity recognizer

Then comes the role of entity, the data point that you can extract from the conversation for a greater degree of accuracy and personalization.

Here’s an example: If the user is trying to find flight tickets, the intent can be ‘to find tickets,’ and the entities under this can be the date, time, etc.

4. Role/context classifier

And, finally, context/role, since entities and intent can be a bit confusing, NLP adds another model to differentiate between the meanings.

Let’s take the previous flight tickets examples; the date entity there can then be classified into available or booked, and so on.

And voilà! That's the secret sauce behind NLP Chatbots' amazing ability to understand and respond to human language! 🌟

How to build an NLP chatbot?

1.25 billion US dollars - Yes, that’s where the chatbot industry is expected to reach by 2023 (which is a substantial increase from its market size of 190.8 million US dollars in 2016)

So if you are a business looking to autopilot your business growth, this is the right time to build an NLP chatbot.

Wondering how to build a natural-language-processing chatbot without coding?

Introducing Botsonic ⭐ - a no-code custom AI chatbot builder by Writesonic that brings the power of ChatGPT and natural language processing right to your website! 🚀

Creating hyper-intelligent, conversational AI experiences for your visitors is now as easy as pie. With Botsonic, you can effortlessly build a custom AI ChatGPT chatbot tailored to your unique needs - that too with no technical expertise required!

Here's a glimpse at the magic Botsonic brings to the table:

1. Train ChatGPT on your data: Botsonic learns from the information you provide, whether it's through uploading PDFs, PPTs, or DOCs or simply sharing website links. It absorbs knowledge from your resources to offer intelligent assistance to your visitors.

2. Personalize your ChatGPT with branding: Make your chatbot truly your own by customizing its name, colors, tagline, welcome message, logo, chatbot image, button style, contact information, and even suggested queries. Turn your chatbot into a brand ambassador!

3. Seamless Integration with a No-Code Approach: Integrating Botsonic into your website is a breeze! Once you create your custom ChatGPT AI chatbot, Botsonic provides embeddable code (available during the free trial) and an API Key option (exclusive to pro plans) for seamless incorporation.

With Botsonic, you can elevate your website's customer experience by creating a personalized, intelligent chatbot in just minutes!

Also, have a look at the top 9 AI chatbot builders that you can try out in 2023

Get ready to witness the power of Conversational chatbot and transform your online presence. 🌟

Build your no-code custom AI chatbot using Botsonic in just three steps

Building a no-code custom AI chatbot has never been easier, thanks to Botsonic! 🎉 Let's walk through the simple, step-by-step process to bring your chatbot to life:

Step 1: Feed Your Chatbot with Data 🗂️

Start by gathering all the essential documents, files, and links that can make your chatbot more reliable. Put yourself in the customer's shoes and consider the questions they might ask. Analyze past customer tickets or inquiries to identify patterns and upload the right data.

How to build a no-code custom AI chatbot?

Step 2: Add a Touch of Your Brand ✨

With your data in place, it's time to make the chatbot your own! Customize it with your brand identity elements like brand colors, logos, and contact information. Give your chatbot a name and include example queries for a personal touch.

How to build a no-code custom AI chatbot?

Step 3: Seamlessly Integrate with Your Website 🔗

As you add your branding, Botsonic auto-generates a customized widget preview. To integrate this widget, simply copy the provided embed code from Botsonic and paste it into your website's code.

How to build a no-code custom AI chatbot?

And that's it! Your very own custom ChatGPT chatbot is now ready to tackle queries and enhance the overall customer experience. 🚀🤖

Learn more about how you can use ChatGPT for customer service and enhance the overall experience.

Build your own custom ChatGPT AI chatbot today!

Benefits of NLP Chatbots in improving customer experience

And this is not all - the NLP chatbots are here to transform the customer experience, and companies taking advantage of it will definitely get a competitive advantage.

Here are a few ways how NLP is transforming the customer experience:

1. Human-like interactions: NLP chatbots provide natural and engaging conversations, leading to better interpretation and a more enjoyable customer experience.

2. Increased automation: NLP chatbots can handle more complex queries, reducing the load on agents and allowing for greater automation of customer interactions, unlike rule-based chatbots.

3. Personalized touch: NLP chatbots analyze user inputs to create tailored responses, resulting in a more individualized and engaging experience.

As per Salesforce, 52% of customers want more personalized interactions.

4. Contextual engagement: By identifying the context of user queries during the conversations, NLP chatbots ensure seamless communication between users and live agents when needed.

5. Swift responses: Customers receive rapid, accurate information from NLP chatbots, leading to increased satisfaction and positive experiences.

6. Cost-effectiveness: By automating many customer interactions, NLP chatbots reduce operational costs and also time, freeing up agents for higher-priority tasks.

Companies can cut down customer service expenses by 30% by adopting conversational solutions.

7. Adaptive learning: NLP chatbots continuously learn from interactions, which helps them improve over time, providing even better customer support. Have a look at 5 customer support AI chatbots that you can take advantage of.

The power of natural language processing chatbots lies in their ability to create a more natural, efficient, and satisfying customer experience, making them a game-changer in the AI customer service landscape. These points clearly highlight how machine-learning chatbots excel at enhancing customer experience.

Learn more about problems that AI chatbots can solve for your business today.

NLP chatbot use cases

Here are 6 amazing NLP use cases across different industries and also a few real-time examples that showcase their immense potential:

1. Banking and insurance

Let’s say you're a busy banking customer juggling work, family, and finances. Navigating complex banking and insurance queries can be daunting, but guess what?

With NLP Chatbots swooping in to save the day, things got a lot easier! 🦸‍♂️🌟

In the banking and insurance industries, NLP Chatbots can tackle common customer concerns such as balance inquiries, payment queries, and even policy-related questions - all in a conversational, user-friendly manner.!

NLP chatbot example: NLP Chatbots, like Bank of America’s Erica, swiftly handle queries regarding balance inquiries, account status, and card-related issues and can escalate complex cases to human agents for seamless customer support.

Thanks to machine learning Chatbots, the banking and insurance sectors are now enjoying streamlined customer support, faster problem resolution, and an overall more delightful user experience! 🚀💬

2. Customer care

NLP Chatbots are making waves in the customer care industry and revolutionizing the way businesses interact with their clients 🤖.

These AI-driven conversational chatbots are equipped to handle a myriad of customer queries, providing personalized and efficient support in no time.

NLP chatbot example: For instance, Ada, a popular NLP Chatbot, serves as an always-available assistant, effortlessly understanding customer concerns and offering relevant solutions to enhance satisfaction and brand loyalty.

With lightning-fast response times, a human touch, and round-the-clock availability, NLP Chatbots are transforming customer care, making the experience more delightful and seamless for users everywhere. 🚀🎯

3. Healthcare

Imagine… it’s late at night, and you’re feeling unwell - and there you are, thinking, “I wish I had a personal healthcare companion 24/7.”

It's time to meet NLP based chatbots revolutionizing the healthcare industry! 🚀

With their engaging conversational skills and ability to understand complex human language, these AI-powered allies are reshaping how we access medical care. The NLP chatbots can not only provide reliable advice but also help schedule an appointment with your physician if needed.

NLP chatbot example: Take Babylon Health's chatbot, for instance, acting as your round-the-clock personal health consultant, it offers tailored health assessments, virtual consultations, and even medication reminders.

Say goodbye to the anxious web searches and hello to healthcare tailored to your needs, all thanks to the incredible power of NLP based chatbots! ❤️

4. Hospitality and travel

Ever observed how the endless choices and daunting logistics leave you overwhelmed when planning for a vacation?

Well, no more! NLP Chatbots are here to save the day in the hospitality and travel industry. They serve as reliable assistants, providing up-to-date information on booking confirmations, flight statuses, and schedule changes for travelers on the go.

NLP chatbot example: NLP Chatbots like KLM's BlueBot (BB) assist you in crafting the ideal adventure by providing personalized flight and accommodation options, real-time booking confirmations, and up-to-date travel updates.

Have a look at the 4 best travel chatbots that you can try in 2023 and how you can build your own travel chatbot.

NLP chatbot in hospitality and travel

These incredible AI-powered travel companions are revolutionizing the hospitality industry, making your travel experiences more seamless, enjoyable, and, most importantly, stress-free. So, grab your sunglasses and let NLP Chatbots handle the rest! 😎🏖️

5. Retail and ecommerce

In the vibrant world of retail and e-commerce, NLP Chatbots are proving to be indispensable shopping buddies! 🛍️

These AI-driven powerhouses elevate online shopping experiences by understanding customer preferences and offering personalized product recommendations that cater to their individual tastes. Learn more about conversational commerce and explore 5 ecommerce chatbots that can help you skyrocket conversations.

NLP chatbot example: Take Sephora's Virtual Artist, for instance - this clever chatbot not only assists with product selection but even provides virtual try-on features, making cosmetic shopping more intuitive and enjoyable.

NLP Chatbots can also handle common customer concerns, process orders, and sometimes offer after-sales support, ensuring a seamless and delightful shopping experience from beginning to end.

If you are an ecommerce store tired of cart abandonment, check out these 7 proven strategies to reduce cart abandonment and explore top 5 shopping bots that can help you transform the shopping experience.

So, with NLP Chatbots on your side, rest assured that both your customers and your business are bound for success! 🎉🛒

6. Real estate

Let’s say you are hunting for a house, but you're swamped with countless listings, and all you want is a simple, personalized, and hassle-free experience.

Well, guess what? NLP Chatbots are here to save the day in the real estate realm! 🏘️

NLP chatbot example: Zillow's AI-driven chatbot analyze your preferences, match you with the perfect property listings, and even schedule viewings, all without breaking a sweat.

Armed with natural language understanding, Chatbots powered by NLP can help real estate businesses answer your property-related questions and provide insights into the neighborhood, making the entire process a breeze.

So, say goodbye to endless browsing and hello to your AI-powered real estate buddy who's ready to help you find your dream home!

What are the security and privacy concerns while implementing NLP chatbot?

While NLP chatbots enhance customer experience, they also come with a few security and privacy concerns.

Here are the key concerns that you need to address while implementing your chatbot:

Security concerns

• Jailbreaking: NLP chatbots can be manipulated through jailbreaking. In this process, a chain of prompts is used with prompt injection techniques to manipulate the AI agent system and break its own safety protocols.

Through jailbreaking, hackers can easily bypass the ethical safeguards of the AI model and generate information that might be prohibited. For example, a simple jailbreak prompt used on ChatGPT can make the generative AI tool create hateful content and insert malicious data into the AI system.

• Data breaches: Chatbots are often trained on user data. Hence proper security measures should be in place to make this data invulnerable to breaches, unauthorized access, and misuse. NLP chatbots fetch data through different APIs. If there are security vulnerabilities such as improper access controls or lack of authentication in any of these API end points attackers take advantage of that to get unauthorized access to users data.

Apart from that, the NLP chatbot can be hosted on a server that's not properly configured. In such cases there are chances that the chatbot will expose sensitive data.

For example, if you are hosting a chatbot through a database that is accessible without proper authentication an attacker can directly query the database to get user details such as email address or other sensitive data.

Privacy concerns

• Data collection: The chatbots collect a huge amount of user data. It should maintain data collection as per the brand's privacy policies.
• Data storage and retention: How the chatbot is storing user data and for what duration are critical measures. Improper data storage practices often lead to breaches.
• Lack of transparency: Sometimes users stay unaware of how their data is stored. Such lack of transparency can lead to mistrust and harm the brand reputation.

How to evaluate and select NLP Chatbot Solutions?

You must evaluate the key aspects of an NLP chatbot solution to ensure it meets your business needs and enhances customer experience.

Technology and capabilities

• Underlying technology: To rightly evaluate an NLP chatbot solution, first check it is built on which technology. Chatbots are created using rule-based, keyword-based, and machine learning-based NLP. A machine learning-based NLP with generative AI will be best choice since they provide more accurate and context-sensitive responses.
• Language support: Make sure multi-lingual support is available to interact with the users in regional languages. For example, Botsonic provides support in more than 25 languages.
• Integration: The chatbot should integrate to all widely-used platforms to ensure seamless user experience. Chatbots like Botsonic integrates with Slack, Shopify, WhatsApp, Facebook Messenger, Zapier, etc.

Security and privacy

• Data security: Evaluate what security measures are in place to protect, store, and retain user data. The best NLP chatbot solutions come with AES-256 encryption for user data and TLS 1.3 with AES-256 for the data in transit.
• Compliance: Ensure the chatbot solution complies with the relevant data protection laws and regulations like SOC 2 Type II, HIPAA, and GDPR.
• Privacy policy: Thoroughly review privacy policies to understand how user data is collected, handled, and protected.

User experience

• Ease of use: The chatbot should be easy for both customers and your team to use. The no-code NLP chatbot solutions are tested to be more user friendly and suitable for all-sized businesses. Look for intuitive interfaces, analytics dashboard, bot performance reports, and other specific features as required for your business.
• Personalization: Check whether the NLP-based chatbot can personalize interactions based on user data and previous interactions. Along with that, the chatbot should have personalization settings to adapt to your brand identity.
• Bot behavior: Assess the chatbot’s ability to empathize with customers and respond to them in a tone that aligns with your brand voice.

Performance and reliability

• Response Accuracy: Make sure the chatbot can understand user queries and respond accurately as per the context to a wide range of queries.
• Scalability: The NLP chatbot solution should meet your business demands as you scale. It must handle increased user activity without any performance issues.
• Downtime and support: Evaluate the provider’s track record for uptime and the availability of customer support. Best NLP chatbots ensure zero downtime and 24x7 support through multiple channels.

Cost and ROI

Pricing Model: Understand the pricing structure, including any hidden costs for additional features or higher usage.

Return on Investment: Evaluate the potential ROI by considering how the chatbot can reduce operational costs, improve customer satisfaction, and increase efficiency.

Vendor Reputation and Support

Vendor Reputation: Research the vendor’s reputation in the market, including customer reviews and case studies.

Customer Support: Ensure the vendor offers robust customer support, including training, documentation, and troubleshooting assistance

Future Trends in NLP Chatbots

The future of NLP chatbots is quite exciting, with several trends shaping their development and capabilities. Here are some key trends to watch:

1. More Human-Like Interactions

Advancements in NLP and machine learning are making chatbots more capable of understanding and generating human-like responses. This includes better handling of context, emotions, and nuanced language, making interactions more natural and engaging.

2. Multilingual and Cross-Lingual Capabilities

Chatbots are increasingly supporting multiple languages and real-time translation, enabling businesses to reach a global audience and provide seamless user experiences across different languages.

3. Voice and Multimodal Interactions

Voice bots are becoming mainstream, allowing users to interact with chatbots through voice commands. Additionally, chatbots are integrating with other modalities like AR/VR, providing richer and more immersive user experiences.

4. Enhanced Contextual Awareness

Future chatbots will have improved contextual awareness, allowing them to understand and remember the context of conversations over longer periods. This will enable more personalized and relevant interactions.

5. Integration with the Metaverse

As the metaverse evolves, chatbots will play a crucial role in providing customer support and enhancing user experiences within virtual environments. This includes assisting users in navigating virtual spaces and performing tasks within the metaverse.

6. Omnichannel Support

Chatbots will offer seamless support across multiple channels, including social media, websites, mobile apps, and more. This ensures consistent and efficient customer service regardless of the platform.

7. Deep Customer Insights

Chatbots will leverage AI to analyze customer interactions and provide deep insights into customer behavior and preferences. This data can be used to improve products, services, and overall customer experience.

8. Ethical AI and Privacy

With growing concerns about data privacy and ethical AI, future chatbots will prioritize transparency, data protection, and ethical considerations in their design and operation

Build NLP chatbot in minutes with Botsonic

NLP Chatbots are transforming the customer experience across industries with their ability to understand and interpret human language naturally and engagingly.

From banking and healthcare to retail and real estate, these AI-driven conversational chatbots are changing the game by providing personalized, efficient, and delightful interactions. 🚀

As the power of Conversational AI and NLP continues to grow, businesses must capitalize on these advancements to create unforgettable customer experiences.

Ready to join the Chatbot revolution?

Start building your custom AI chatbot with Botsonic today and elevate your website's customer experience like never before!