Conversational AI Chatbots

Chatbots are powerful Conversational AI tools that can enhance customer (or employee) experiences, automate tasks and optimize operations. They are sometimes referred to as AI agents, virtual or digital assistants. If powered by great conversation design, they can be a truly transformative force.

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Understanding chatbots

At their core, chatbots are conversational computer ‘agents’ designed to simulate conversation with humans. Using Conversational AI technology, they engage in natural and interactive dialogues with people. This can be through chat widgets on websites, through social media comments or other chat enabled interfaces. Sometimes the term chatbot is also to describe voice bots and other types of AI assistants like generative AI bots or agents.

Chatbots can perform a wide range of tasks, helping businesses with consistency, automation, operating costs and much more.

While technology plays a big role in chatbot development, human expertise remains an essential element. Conversation designers, AI trainers and human reviewers are crucial in ensuring that chatbots communicate with empathy and authenticity. Ensuring they align with customer needs, brand guidelines, legal requirements and the goals of the business.

Types of chatbot

There are three main types of chatbot:

  • Declarative chatbots (scripted/rule-based)

    These chatbots follow predefined rules and patterns to respond to user queries. The chatbot answers are designed and written by conversation designers. As are the different steps and turns in the conversation. Declarative chatbots excel in handling structured interactions and providing consistent information. They may struggle with handling ambiguous queries or unpredictable user inputs.

  • Generative chatbots

    Leveraging the power of LLM’s, generative chatbots process context and generate responses dynamically. They can generate text, translate languages and answer questions in an open-ended manner. They are well-suited for complex interactions and unpredictable scenarios. They may offer more flexibility but could be challenging to control for specific use cases. To increase their reliability (and truthfulness) the generation of answers is often grounded in existing knowledgebases.

  • Hybrid chatbots

    Hybrid chatbots are defined as combining elements of both declarative and generative chatbots. To answer customer questions they use a combination of pre-designed answers and flows and generative answers. There are many different ways to combine the strengths of declarative and generative chatbots, and hybrid chatbots are very much the way of the future.

How CDI can help

Hans van Dam
1:16 min

What are the benefits of chatbots?

Enhanced customer experience

Enhanced customer experience

Chatbots provide 24/7 availability, personalized interactions and self-service options, improving customer satisfaction and loyalty. Chatbots can deliver a consistent brand voice and messaging across all interactions, ensuring a cohesive and positive customer experience. Chatbots are always available to answer customer queries, providing instant assistance at all hours and improving overall customer satisfaction.

Automated tasks and reduced costs

Automated tasks and reduced costs

Chatbots can automate repetitive tasks, freeing up human resources for more complex and creative tasks with the additional benefit of lowering operational costs.

Operational efficiency & scalability

Operational efficiency & scalability

Chatbots can streamline internal processes, such as onboarding, scheduling and knowledge sharing, improving employee productivity and efficiency. Businesses can scale their chatbot capabilities as their needs evolve. Adding channels or capabilities. For example branching out from the corporate website to the app, or adding voice capability so as to be available on the phone.

Multichannel Integration

Multichannel Integration

Chatbots can be integrated across various communication channels, including websites, social media, and messaging apps, providing a seamless and unified customer experience.

What can chatbots be used for?

Customer support:

Handling frequently asked questions and providing instant support to customers, improving response times, and ensuring 24/7 availability.

Order processing and tracking:

Assisting customers in placing orders, tracking shipments, and managing order-related inquiries, providing a convenient and efficient shopping experience.

Information retrieval:

Providing information about products or services, and guiding users through troubleshooting processes.

Employee onboarding:

Assisting new employees during the onboarding process by providing information about company policies, procedures, and answering common HR-related queries.

Lead generation and qualification:

Initiating conversations with website visitors, collecting information, and qualifying leads based on predefined criteria before passing them on to sales teams.

Employee onboarding:

Assisting new employees during the onboarding process by providing information about company policies, procedures, and answering common HR-related queries.

Appointment scheduling:

Allowing users to schedule appointments, book reservations, or set reminders without human intervention, streamlining the booking process.

Surveys and feedback collection:

Conducting surveys and collecting feedback from customers or employees, allowing businesses to gather valuable insights and improve their products or services.

Language translation:

Facilitating communication by offering language translation services, enabling businesses to interact with a diverse customer base.

Internal IT support:

Assisting employees with IT-related issues, troubleshooting common problems, and providing guidance on software usage within the organization.

Interactive content delivery:

Delivering personalized content, recommendations, and interactive experiences based on user preferences and behavior.

Healthcare assistance:

Providing basic health information, appointment scheduling with healthcare professionals, and medication reminders to patients.

Financial services:

Assisting users with account inquiries, transaction history, and basic financial planning, improving customer engagement in the financial sector.

Travel assistance:

Helping users plan trips, book flights, hotels, or rental cars, and providing travel-related information and recommendations.

HR and recruitment support:

Assisting with job applications, answering HR-related queries, and providing information about company policies for both applicants and employees.

Entertainment and Gaming:

Creating interactive gaming experiences, delivering content recommendations, and engaging users in entertaining conversations.

How can CDI help?

CDI provides comprehensive training, live support, coaching, and consultancy services to empower businesses in developing Conversational AI solutions that adhere to best practices. Our experienced team guides you through every step of the process, ensuring your implementation is efficient, effective, and aligned with industry standards.


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Learn more about Chatbots

CDI Method

CDI Method

Learn the conversational AI workflow that is helping teams around the world create human-centric and inclusive conversational AI Assistants. This course is the starting point for both managers and functional teams wanting to learn about creating great chatbots and voice applications.
Conversation Design Fundamentals

Conversation Design Fundamentals

Learn what Conversation design is. And learn how to apply all the fundamental conversation design principles and techniques, to create a successful Conversational AI agent.
Persona Development Module

Persona Development Module

Learn about how to create or refine your conversational AI persona. Learn how to create content to flesh out that personality and make your conversational AI even more engaging.
Behavior Design Module

Behavior Design Module

Learn what makes people act, and learn how to apply behavioral psychology in your Conversational AI. Create great experiences for your customers.

Training and Certification

Discover our courses and certification programs for creating winning AI Assistants and enterprise capabilities. Get started today.

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Learn to integrate ethical principles and compliance into AI Assistants with our AI Ethics Course Online. Designed for conversation designers, AI trainers, and business stakeholders, it covers conversational AI social and ethical considerations, risk…

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Browse CDI’s entire library of 500+ videos

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Learn to integrate ethical principles and compliance into AI Assistants with our AI Ethics Course Online. Designed for conversation designers, AI trainers, and business stakeholders, it covers conversational AI social and ethical considerations, risk…

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AI Trainer

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In this AI Trainer Course, learn to train AI Assistants to understand human language. Designed for those building human-centric, goal-oriented assistants, it covers conversational AI training, language model nuances, and dialogue implementation. Whet…

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Learn CDI’s CAI Method—the test-and-tried Conversational AI workflow helping teams worldwide build human-centric, inclusive AI Assistants. This course is the starting point for managers and functional teams wanting to learn about creating great Conve…

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This technology-agnostic course teaches you to design human-centric, inclusive, and goal-oriented AI Assistants. Learn strategies, methods, and design patterns for creating great conversational experiences—applicable to all Conversational AI use case…

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Browse CDI’s entire library of 500+ videos

AI Ethics

AI Ethics

Learn to integrate ethical principles and compliance into AI Assistants with our AI Ethics Course Online. Designed for conversation designers, AI trainers, and business stakeholders, it covers conversational AI social and ethical considerations, risk…

5 hours
1 modules
AI Trainer

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In this AI Trainer Course, learn to train AI Assistants to understand human language. Designed for those building human-centric, goal-oriented assistants, it covers conversational AI training, language model nuances, and dialogue implementation. Whet…

8 hours
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CDI Method Foundation

CDI Method Foundation

Learn CDI’s CAI Method—the test-and-tried Conversational AI workflow helping teams worldwide build human-centric, inclusive AI Assistants. This course is the starting point for managers and functional teams wanting to learn about creating great Conve…

9 hours
1 modules
Conversation Designer

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This technology-agnostic course teaches you to design human-centric, inclusive, and goal-oriented AI Assistants. Learn strategies, methods, and design patterns for creating great conversational experiences—applicable to all Conversational AI use case…

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FAQs

What is a chatbot and how does it work?

A chatbot is a system that interacts with users through text or voice. It understands questions, retrieves information, and guides people through tasks. Modern chatbots use conversational AI and conversation design to make these interactions feel natural and human-centered.

Are chatbots AI?

Yes, chatbots are a form of artificial intelligence designed to simulate conversation with humans. Some are simple and rule-based, while others use advanced AI models that understand intent, tone, and context. Conversation designers make sure those interactions are purposeful, safe, and aligned with user needs.

Are chatbots generative AI?

Some are. Traditional chatbots rely on scripts and predefined rules, while newer systems use generative AI to create responses dynamically. The most effective chatbots combine both structure from design and creativity from AI, guided by conversation designers to ensure accuracy and control.

Are chatbots large language models (LLMs)?

Not exactly. LLMs, like GPT-4, are the underlying technology that can power chatbots. A chatbot is the interface, the “face” users talk to built on top of an LLM or another AI system. Conversation designers define how that model communicates so interactions feel natural, clear, and on-brand.

What are the different types of chatbots?

There are rule-based chatbots, which follow predefined scripts, and AI-powered chatbots, which use machine learning to understand intent and context. Many modern systems combine both logic and intelligence, refined through conversation design.

What’s the difference between a chatbot and Conversational AI?

A chatbot is one application of Conversational AI. Conversational AI is the technology that enables machines to understand and generate language; a chatbot is how users experience it. Conversation designers connect the two, ensuring the experience feels human and helpful.

How do you design a chatbot?

Effective chatbot design starts with understanding your users, their goals, emotions, and context. Then, define intent structures, craft tone, and test with real people. At CDI, we use our Conversation Design Standards Framework, built on psychology, linguistics, and technology, to create chatbots that are inclusive, natural, and aligned with business goals.

How do you build a chatbot?

Start by defining its purpose and user journey. Then, use a chatbot platform such as Dialogflow, Rasa, or Microsoft Bot Framework to design, train, and test conversations. Conversation designers, AI trainers, and engineers collaborate to turn the design into a functioning, human-like experience.

How do I train a chatbot?

Training involves teaching the chatbot how people actually speak, identifying intents, refining responses, and using feedback to improve performance. Conversation designers and AI trainers work together to make sure the system learns safely, ethically, and effectively.

How can conversation design improve a chatbot?

Conversation design gives chatbots their personality, empathy, and flow. It turns a technical interaction into a meaningful exchange. CDI’s frameworks teach teams how to design tone, structure, and dialogue that make AI interactions feel natural and emotionally intelligent.

What makes a chatbot effective?

The best chatbots are clear, helpful, and human-like. They know their purpose, stay on-brand, and guide users smoothly. Conversation designers balance efficiency and empathy, ensuring the chatbot serves both user needs and business goals.

Can chatbots hallucinate?

Yes, AI-powered chatbots can sometimes “hallucinate,” meaning they generate confident but incorrect information. That’s why conversation design and human oversight are vital. Conversation designers test, review, and retrain systems to ensure they stay accurate and reliable.

Are chatbots known to hallucinate?

Yes, especially those using generative AI or large language models. These systems can produce information that sounds convincing but isn’t true. At CDI, we teach how to design and monitor chatbots responsibly with clear boundaries, transparency, and human review to keep users safe.

Are chatbots safe?

When designed responsibly, yes. Safe chatbots protect user data, communicate transparently, and avoid bias or manipulation. Conversation designers apply CDI’s ethical and inclusive design standards to make sure chatbots are trustworthy and aligned with organizational values.

Where are chatbots used today?

Chatbots are used in customer service, e-commerce, healthcare, HR, education, and more. They handle repetitive tasks, provide information, and guide users through processes. When backed by good conversation design, they enhance experiences rather than replace people.

Can chatbots replace humans?

No, they complement them. Chatbots automate routine work, freeing humans to focus on empathy, creativity, and strategy. CDI teaches teams how to design chatbots that collaborate with humans instead of competing with them.

How can a chatbot help my business?

A well-designed chatbot improves customer experience, reduces support costs, and builds stronger relationships with users. With conversation design, it becomes a consistent digital representative for your brand, clear, reliable, and available 24/7.

How can I implement a chatbot successfully?

Start small. Define a single, measurable goal, such as handling FAQs or scheduling and design that flow thoroughly before scaling. CDI’s experts train and support teams through every phase: from strategy and design to testing and optimization.

Which chatbot platform is best for my organization?

It depends on your goals, channels, and technical setup. CDI helps organizations evaluate and design across multiple platforms, ensuring that the user experience, not the tool itself, drives success.

Can anyone learn to design chatbots?

Yes, whether you come from writing, UX, tech, or marketing, you can learn conversation design. CDI’s programs teach practical frameworks and tools used by leading companies to create chatbots that truly work for people.

What makes CDI different in chatbot training?

We don’t just teach how to build chatbots, we teach how to design them for people. Our Conversation Design Standards Framework, global community, and hands-on training give professionals the mindset and methods to design AI systems that are ethical, effective, and human.

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Our seasoned experts help brands to design, build and maintain best-in-class AI assistants. So if you want to hit the ground running or you need help scaling your team, get in touch.