Conversational AI

How to Build Chatbots with Conversational AI?

Neeraj Shukla
By Neeraj Shukla | Last Updated on October 21st, 2023 10:55 am

In the ever-changing world of consumer engagement, businesses are increasingly turning to conversational AI chatbots as powerful tools to enhance customer engagement, improve service efficiency, and create a seamless user experience. A survey conducted by Accenture reveals that the impact of conversational bots is profoundly reshaping the industrial landscape. An impressive 56% of companies acknowledge that these bots are acting as catalysts for disruption within their respective sectors. This statistic highlights the profound transformative potential that these AI-powered conversational agents hold in reshaping the way industries operate.

This blog explores how to build conversational AI chatbots that connect with people and promote company success. We'll discuss the method to create an AI chatbot and the considerations to keep in mind while building one for your business.

Understanding the Purpose: The Foundation of Effective Chatbots

The journey of building an impactful chatbot begins with a clear understanding of its purpose. Businesses must define their objectives – whether it's reducing resolution times, enhancing customer satisfaction, or providing proactive customer service. Identifying the goals paves the way for designing chatbots that align with specific business needs.

Design the Conversation Flow

Designing the conversation flow of a chatbot is indeed crucial to ensure a smooth and effective user experience. The conversation flow should be intuitive, engaging, and capable of guiding users toward their desired outcomes.

Here's a generalized example of how a conversation flow for a customer support chatbot might be designed:

Customer Support for Travel Website User Inputs: User: Hi there! I'm looking to plan a vacation.User: Hey, I need some travel suggestions.User: Hi, I'm interested in traveling. Can you help? Bot Responses: Bot: Of course, I'd be delighted to assist you! To begin, could you please answer a few questions? What type of travel experience are you looking for? (e.g., Relaxing, Adventure, Cultural) Provide Customer Support for an E-commerce Website Order Assistance Bot: Of course! I'd be happy to help with your order. Could you please provide me with your order number?User: Sure, my order number is 12345.Bot: Thank you. How can I assist you with order #12345?

Rules-based vs. Conversational AI: Navigating the Landscape

Traditionally scripted chatbots have limitations – they require manual intervention for each possible customer query or phrase, making them rigid and unable to adapt. In contrast, conversational AI chatbots revolutionize the landscape by understanding synonyms, context, and intent. This advancement empowers bots to interpret user inputs comprehensively, leading to more accurate and relevant responses.

Conversational AI chatbots are powered by machine learning and natural language processing (NLP) techniques and can understand context, language nuances, and variations in how questions are asked. These chatbots learn from large datasets and can generalize their understanding to respond to a wide range of inputs, even if they haven't been explicitly programmed for those inputs.

The Power of Contextual Understanding: Real-World Insights

Using real-world examples, Bank of America,’s Erica- an AI chatbot assistant. Its journey showcases the ruled-based chatbot to conversational AI. By comprehending user queries' context and intent, Bank of America’s chatbot efficiently handled over 500 variations of a single question. This exemplifies how conversational AI reduces the need for exhaustive manual scripting and enhances user experience.

One of the critical aspects showcased by Erica's evolution is its ability to comprehend the context and intent behind user queries. This contextual understanding allows the chatbot to handle a wide range of variations of a single question, totaling over 500 in this case. Instead of relying solely on predefined rules and scripts, the chatbot can analyze the input it receives and derive meaning from it, providing relevant and accurate responses.

Multi-Faceted Role: Build a Multi-User Chatbot

Chatbots are more than just customer support tools – they become extensions of a brand's identity. In addition to their role in customer support, multi-user chatbots play a vital role in enhancing brand identity by fostering personalized interactions. They can provide product recommendations, share brand stories, and even offer entertainment, all while staying true to the brand's voice and values. Multipurpose AI chatbots cultivate lasting relationships, contributing to a holistic brand experience that goes beyond traditional customer service interactions.

Choosing the Right Development Approach: No-code or Low code or Pro-code

Businesses have options when it comes to building chatbots – minimum coding, pro code development, or going codeless. While building from scratch offers customization, pro code platforms can be complex and require skilled developers. No-code platforms like Appy Pie emerge as efficient solutions, allowing businesses to set up chatbots quickly, reducing development time and costs significantly.

Appy Pie's Chatbot Bot Builder allows businesses to create and deploy chatbots without the need for extensive coding knowledge. This no-code platform offers a user-friendly interface with drag-and-drop functionality, enabling companies to design conversational flows and integrate AI capabilities seamlessly. By utilizing Appy Pie Chatbot Builder, brands can efficiently develop chatbots that align with their identity, enhance customer engagement, and provide valuable services, all while minimizing the complexities and costs associated with traditional coding approaches.


Building chatbots with conversational AI is a dynamic journey that balances technology, user experience, and business objectives. By understanding the purpose, leveraging contextual understanding, and choosing the right development approach, businesses can create chatbots that not only enhance customer interactions but also drive brand engagement, lead generation, and ultimately, business success. As the world of AI continues to evolve, embracing the power of conversational AI chatbots opens doors to more personalized and efficient customer interactions.

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Neeraj Shukla

Content Manager at Appy Pie