Chatbots for Business: Types & Use Cases by Industries

calendar Updated April 22, 2024
Bryce North
Former Sales & Marketing Manager
Chatbots for Business: Types & Use Cases by Industries

I personally know a lot of entrepreneurs who used to think that a AI chatbot is not the right solution for them. The common excuses include: “We’re too small for that”, “It’s not something we can afford right now”, or “I don’t think I need it”. When I asked them why they think this way, I found that most of them have a very limited idea of what a chatbot can do for their business.

While many companies use AI chatbots for customer service concerns, a lot of people are still unaware that AI chatbot can be used for more than just providing support and answering questions. Here are some solid use examples of how companies in various industries can use chatbots.

Based on a Facebook survey, over than half (53%) of consumers stated that they are more likely to shop with a business they may contact through a chat application.

What is a Chatbot?

A chatbot can be defined as a type of software that imitates human conversations, serving as a bridge for communication between humans and machines. This interaction involve exchanging messages or using voice commands.

Upon receiving a question, the bot responds using its existing knowledge database. If the conversation involves a topic beyond its programmed comprehension, it will transfer the matter to a human operator. Learning from these interactions and subsequent ones, the chatbot’s capabilities will progressively broaden, enhancing its significance.

How do They Work?

Bots are designed for a specific purpose: to answer questions, respond to comments, and handle queries within chat interfaces or through voice interactions. They employ artificial intelligence (AI), automated algorithms, natural language processing (NLP), and machine learning (ML) techniques.

Automated algorithms involve providing the chatbot with business documents and guiding it through self-training. Using these documents, the engine generates a list of questions and responses. Accordingly, the bot gains the ability to respond with confidence.

Natural language processing is a blend of linguistics, computer science, and artificial intelligence. NLP assists in translating human language into patterns and text that can be interpreted in real-time to generate suitable responses.

Machine learning, it’s a form of artificial intelligence (AI) and computer science. It centers on employing data and algorithms to mimic the human learning process, gradually improving its precision.

Types of chatbots

Businesses are harnessing the potential of types of chatbots to redefine customer interactions and operational efficiency. From rule-based chatbots following preset instructions to AI-driven chatbots capable of learning and adapting, these digital companions are reshaping the way companies engage with their audiences.


A rule-based chatbot follows predetermined rules and responses created by human programmers. These rules guide the chatbot’s interactions. When a user sends a message, it looks for a matching rule in its database and responds accordingly. Rule-based chatbots are effective for specific tasks with set patterns but may struggle with intricate or unpredictable conversations due to their limited programmed responses.


An AI chatbot is an advanced virtual assistant that uses algorithms and machine learning techniques to interact with users in a human-like manner.

The main difference is that AI chatbots can learn and adapt from interactions, improving their response quality over time. They excel in natural language processing, comprehending and interpreting user input, regardless of its phrasing. They grasp context, identify intent, and provide relevant responses. AI bots often incorporate sentiment analysis, enabling them to comprehend user emotions and tailor interactions accordingly. These integrated chatbot features make conversations with chatbots more captivating, personalized, and efficient.

Using Generative AI

Generative artificial intelligence refers to algorithms that are capable of producing various types of content, including audio, code, images, text, simulations, and videos. Today, an increasing number of companies are incorporating this new technology into their current chatbots.

At Master of Code, we specialize in aiding businesses to harness Generative AI for crafting immersive experiences for their clients. We integrate a middleware data exchange system into the NLU or NLG system, incorporating Generative AI in customer service into the existing Conversational AI platform. Our framework is constructed upon the pre-existing chatbot, eliminating the necessity to create a Generative AI chatbot from scratch.

Chatbot Use Cases

Drive Sales

Companies could consider chatbot use cases for engaging potential clients. These bots initiate conversations, providing answers to inquiries and offering information about products or services. During the purchasing process, the bot navigate customers through various stages, assisting in selecting products, determining size and color, and other details.

Analyzing interactions and historical data, this virtual assistant generates personalized recommendations, enriching the shopping experience. For instance, if a person expresses a preference for a particular style or category, it suggests relevant items that align with their preferences. These chatbots in business increase customer engagement and help drive sales by presenting consumers with options that cater to their individual preferences.

Customer service

Contact centers often use chatbots for business purposes within the context of customer service. They are programmed to quickly provide responses to commonly asked questions using predefined answers. This automation empowers customer service agents to concentrate on more complex and demanding inquiries, as the chatbots handle routine and repetitive concerns. Moreover, they excel at collecting feedback.


There are numerous fields in which marketers could employ chatbots in business, ranging from customer engagement and personalized recommendations to advertising campaigns and lead generation. Chatbots have the capability to deliver targeted messages and promotions based on user preferences and behavior. Additionally, they can guide users through the sales funnel and collect valuable data for market research.

Notable Chatbot Benefits for Business Owners

No one disputes the advantages of virtual assistants for consumers, but let’s delve deeper into the benefits of chatbots for business owners.

  • Cost and Time Savings: Automated chatbots reduce the need for hiring additional staff, reduce customer wait times and resolve issues quickly, leading to efficient problem resolution.
  • Quick Information Retrieval: Bots swiftly provide product details, pricing, and other information, improving customer decision-making.
  • Increased Sales: By guiding a person through the buying process, bots boost conversion rates and drive sales.
  • Efficient Lead Generation: By collecting and analyzing personal data, lead generation bots identify potential leads, qualify them, and guide them through the sales funnel, thereby enhancing the effectiveness of lead generation efforts.
  • 24/7 Availability: Virtual assistants offer round-the-clock assistance, ensuring customers interact with your business at any time.
  • Scalability: Chatbots handle multiple conversations simultaneously, enabling seamless customer interactions during peak periods.

How are Companies Using Chatbots?

In today’s business landscape, bots are increasingly essential for companies of all sizes, allowing them to enhance their customer support capabilities and streamline lead generation through automation. Here are some solid examples of how companies in diverse industries can utilize chatbots for business.

eCommerce Stores and Sales Chatbots

One of the reasons why customers abandon their shopping carts is because the checkout process is too complicated. When you have a chatbot guiding the customer, this will help simplify the purchasing journey because you’re not leaving the customers on their own. The chatbot for eCommerce will also be able to instantly answer questions a customer might have about your product which will encourage the customer to hit that purchase button ASAP.

Food Businesses and Ordering Chatbot

You don’t have to be a Pizza Hut or Starbucks to have a chatbot. Even if you have a home-based cupcake business or a small sandwich shop, you can streamline orders and deliveries by using a chatbot. A chatbot allows your business to entertain multiple customers and it also frees up your phone line so you can concentrate on fulfilling orders. More customers served means more revenue.

Food Ordering Chatbot

Event Companies and Booking Chatbots

There are different ways event companies can take advantage of chatbots such as ticketing, confirming event attendees, reminding guests of schedules, and also conducting post-event surveys. An organizer for a business conference can use chatbots as a method of delivering relevant information about the event. Chatbots are also useful for huge events like trade shows and concerts to manage hundreds or even thousands of participants more efficiently.

Research Organizations

The typical way to conduct a survey is to ask respondents to fill out digital forms where you leave them to answer on their own. Switching to a chatbot, however, makes the experience more interactive and you lessen the chance the respondent not completing the survey. This is because a chatbot provides a conversational feel that is more engaging.

Learning Institutions and Chatbot for Education

With online learning becoming more popular, schools, universities, and other educational institutions need to be able to address the needs of students while still keeping them engaged in learning. Education chatbots can help make online learning more interactive. It can be used to conduct quizzes, learning exercises, and deliver other instructional modules. Instead of students only learning from videos or answering online test questionnaires, a chatbot conducting a quiz makes the learning experience much more interesting and engaging.

Healthcare Companies

Healthcare chatbots can be used to conduct online consultations, address minor health-related questions, provide information about drugs and medications, and track their own health symptoms. Clinics can also use chatbots in scheduling appointments, giving outpatient reminders, and alerting patients about prescription refills. Check out the full potential and possible impact of
Generative AI Use Cases within Healthcare industry.

Healthcare Chatbot

Banks and Financial Institutions

Banking transactions follow a stringent process that a human agent can find repetitive. For example, when customers want to check their account balance, calling an agent to do this means the agent has to perform several qualifying questions to confirm the identity of the customer. While this can be done through telephone voice prompts, many customers usually find these pre-recorded prompts tedious and time-consuming.

With a call center automation via chatbot, however, you can get immediate information by sending instant messages. The Wells Fargo chatbot is a great example of how this is done. Just by asking a question through an instant message, the Wells Fargo Banking chatbot can tell you how much is left in your account and even give you a summary of your expenses for a certain expense category.

Recruitment Teams

Sorting through job applications can be tedious and very time-consuming. If you are a big company, a job post will surely get thousands of applications but at the same time, it is not unusual for small companies to get hundreds of applicants as well.

Instead of using a human resource to review all the CVs one by one, recruitment companies and HR departments can use chatbots to prequalify applicants. The chatbot can help companies in screening applicants, scheduling interviews, onboarding new employees, training, and delivering information on company policies.

What Factors to Consider When Choosing Chatbot Development Services?

Chatbots are gaining significant popularity among business owners. However, before you make the decision to implement a virtual assistant, it’s essential to ask yourself a few questions:

  • What criteria should I consider when evaluating a chatbot?
  • What factors do I need to take into account?

Select the Solution that Solves the Specific Problem

When deciding on a chatbot, focus on selecting a solution for a specific business challenge. Opt for a customized chatbot for business to address your precise issue. This ensures technology aligns with your business goals.

BloomsyBox wanted to create a Mother’s Day campaign focused on building stronger relationships with clients by providing a personalized experience. In collaboration with Infobip, Master of Code Global designed the first Generative AI chatbot that makes personalized greeting cards. The outcome was as follows:

  • 60% of users who interacted with the bot successfully finished the quiz.
  • 38% of users chose Generative AI to generate their greeting cards.

Select a Comfortable Chatbot Development Provider

When considering a chatbot for business, think about essential evaluation points: pricing, functionality, and user experience. Also, evaluate integration capabilities and support level of different chatbot solutions. Ensure the bot development provider aligns with your business needs and values. This leads to a successful and reliable partnership.

Select the Type of Chatbot According to your Needs

To choose a suitable chatbot, identify your goals and requirements. There are different categories to consider, including rule-based bots, AI chatbots, and generative AI chatbots. Each type has distinct purposes and varying capabilities.

During the COVID-19 pandemic, the Telecom brand recognized the need for an automated service solution for its clients. Master of Code’s bot tuners employed robust Natural Language Understanding training using actual customer phrases. As a result, over 1.1 million conversations were conducted with the bot.

Maximizing the Potential of Chatbots for your Business

These are just some examples of how businesses in various industries can utilize chatbots. Keep in mind that it’s not about replacing humans or stealing jobs away. It’s more about allowing us to work smarter so we can also explore more fulfilling possibilities.

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