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The terms “AI chatbot” and “intelligent virtual agent” (IVA) are sometimes used interchangeably, but there are key distinctions between the two.
AI (artificial intelligence) chatbots are primarily designed for focused, often simpler, conversational tasks. They excel at handling high-volume, repetitive queries, like answering frequently asked questions (FAQs) or providing basic customer support.
While an AI chatbot may use natural language processing (NLP) to understand keywords, its contextual understanding is often limited since it relies on predefined rules or decision trees. Therefore, its typically best suited for straightforward interactions such as:
- Customer service for basic inquiries.
- Providing general information (e.g., store hours, product details).
- Giving guidance through simple processes.
Intelligent virtual agents are purposefully designed for more complex, dynamic, and personalized interactions. An IVA aims to understand a person’s intent and provide more comprehensive assistance.
An IVA leverages advanced AI technologies, including NLP, machine learning (ML), and data analytics, to understand context, learn from interactions, and crucially — adapt its responses based on what it has gathered.
IVAs use leading-edge tech and can integrate with backend systems to perform tasks and provide customized solutions like:
- Personalized customer service and support.
- Handling complex transactions.
- Providing proactive assistance and recommendations.
- Automating complex business processes.
Since IVAs represent a more advanced evolution of chatbots, with greater intelligence and capabilities, chatbots are often seen as a subset of IVAs. A chatbot may be able to answer simple questions, but an IVA can usually understand the context of a conversation, learn from past interactions, and perform more complex tasks.
