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An AI-powered chatbot or an AI chatbot is a conversational program within a website or an app that simulates human interactions with the users. AI-powered chatbots were initially designated for customer services, and now they are used as multifaceted business cases form customer communication to internal stakeholder interaction. These chatbots utilize artificial intelligence (AI) techniques, such as natural language processing (NLP) and machine learning, to understand and respond to user inputs. They can handle more complex conversations and improve over time through learning from interactions.

AI Chatbot Use Cases Across Industries

1. Customer Service & Support

Use Case: Automated Customer Support

Description: AI chatbots can handle common customer inquiries, resolve issues, and provide troubleshooting steps for products or services. They’re often the first point of contact, directing customers to the right resources or escalating to human agents when necessary.

Example: A telecom company uses a chatbot to assist users with account inquiries, billing questions, and technical support (e.g., resetting a router).


2. E-commerce & Retail

Use Case: Product Recommendations

Description: AI chatbots can guide customers through the buying process, offering personalized product suggestions based on user preferences, browsing history, or previous purchases.

Example: An online clothing store uses a chatbot to recommend outfits based on user style preferences, weather conditions, or specific events (e.g., a wedding or vacation).


3. Healthcare & Wellness

Use Case: Symptom Checker & Virtual Health Assistant

Description: AI chatbots can assist patients by gathering symptoms and providing initial diagnoses or suggesting appropriate actions, such as visiting a doctor or taking medication.

Example: A health platform uses a chatbot to ask patients questions about their symptoms and recommend the next steps, such as scheduling an appointment or visiting a clinic.


4. Education

Use Case: Tutoring & Learning Assistance

Description: Chatbots can provide students with on-demand tutoring, answering questions related to their studies, explaining complex concepts, or even administering quizzes.

Example: An online language learning platform uses a chatbot to help users practice vocabulary and grammar, and also corrects mistakes in real-time.


5. Human Resources & Recruitment

Use Case: Recruitment Chatbots

Description: AI chatbots can screen resumes, conduct preliminary interviews, and answer candidate queries about job positions, company culture, or benefits.

Example: A company uses a chatbot to engage with applicants, asking pre-screening questions, assessing qualifications, and scheduling interviews for shortlisted candidates.


6. Banking & Finance

Use Case: Banking Assistance

Description: AI chatbots can help customers with account-related inquiries, such as checking balances, processing transactions, and setting up recurring payments.

Example: A bank uses a chatbot to assist customers in checking recent transactions, transferring funds, or even providing updates on loan applications.


7. Travel & Hospitality

Use Case: Travel Assistance

Description: Chatbots can help customers plan their trips, make bookings, and provide real-time travel updates like flight status or hotel availability.

Example: A travel agency uses a chatbot to recommend destinations based on preferences, book flights and hotels, and provide itinerary updates.


8. Marketing & Sales

Use Case: Lead Generation & Qualification

Description: AI chatbots can interact with website visitors, qualify leads by asking relevant questions, and pass high-quality leads to sales teams.

Example: A SaaS company uses a chatbot on its website to ask visitors about their business needs and suggest tailored software solutions.


9. Real Estate

Use Case: Property Search Assistance

Description: Chatbots in real estate can help users search for properties based on location, budget, and preferences. They can schedule property viewings or send listings to users.

Example: A real estate company uses a chatbot to answer questions about properties, provide virtual tours, and book appointments with agents.


10. Government Services

Use Case: Public Service Assistance

Description: AI chatbots can help citizens access government services, answer questions about public policies, process applications, or track the status of requests.

Example: A local government website uses a chatbot to help citizens find information about tax filing, licensing, or community services.


11. Legal Services

Use Case: Legal Advice and Document Assistance

Description: Chatbots can provide initial legal advice or help with generating common legal documents, like contracts, wills, or business forms.

Example: A law firm uses a chatbot to guide users through creating basic legal documents or answer general legal questions.