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The Ultimate Guide to Selecting the Perfect Chatbot for Your Business

Choices... choices... choices... Which chatbot is right for my business?

I'm sure by now you would know what a chatbot would be. Selecting the right one is the next big question.

Choices can always be a paralysing decision especially if there are a lot of features, specs and designs to consider. I remember the feeling all too well when I was out shopping for my next laptop. As a tech person, buying the right laptop for me isn't a decision I take lightly. (You should have seen me... I made an Excel sheet just to compare the laptop I'm considering). Man! It took me ages till I finally decided.

Choosing the right chatbot for your business is all the same.

There are so many configurations, LLMs, design, functionality... so many choices that it can cripple anyone no matter how well-experienced you are at running your business.

Don't fret. I'm here to line up what type of chatbots are right for your business.

Define the role and type of your chatbot

First, let's consider the following:

  • Budget

  • Level of effort required - What are you expecting the bot to help you with?

  • Technical Limitations - Do you expect the bot to automate or connect systems?

  • Timeline

After defining this for your business. Let's now go over the different types of chatbots and my recommendations of what kind of businesses would fit well.

Rule-based Chatbots

These types of chatbots do not need AI to function properly. As the name implies, this type of chatbot is heavily governed by a set of programming codes that dictates what type of input is expected of the user and how the chatbot will react.

Although this type of chatbot restricts the user from getting creative with their answers. There are a number of use cases where it is better to deploy a rule-based chatbot than AI bots.


  • If cost is the biggest consideration, rule-based chatbots are relatively cheaper to deploy as compared to their AI counterparts.

  • Quick setup - Relatively straightforward in its development as it doesn't require complex machine learning models or extensive training data. Responses are considered to be very precise because the chatbot will rely on predefined rules.


  • Non-AI chatbots are rigid and cannot adapt to new or unexpected user input. They can only respond using predefined rules making them less flexible for handling diverse user queries.

  • This makes scalability a big issue for rule-based chatbots. The chatbot's limitations and scope are defined well before the bot is developed. Expanding their capabilities often involves a substantial increase in rule complexity and code.

Recommended to:

  • Recommended for businesses that require precise, standardised interactions with customers or users.

  • If your business is under strict compliance, having the ability to control responses may be a big advantage.

  • This is also recommended for businesses with well-defined FAQs or information repositories. A rule-based chatbot can help users quickly find answers to their questions.

What kind of industry will rule-based chatbots fit in?

  1. Customer Support: Rule-based chatbots can provide scripted responses to common customer queries, offering support and information about products or services.

  2. FAQs and Information Retrieval: Businesses with well-defined FAQs or information repositories can use rule-based chatbots to help users quickly find answers to their questions.

  3. Appointment Scheduling: Healthcare providers, salons, or service-based businesses can use rule-based chatbots to schedule appointments, sending reminders and confirmation messages.

  4. E-commerce: E-commerce websites can employ rule-based chatbots for tasks like order tracking, product recommendations, and handling returns or refunds.

  5. Restaurant Reservations: Restaurants can use chatbots to handle reservation requests, provide information about the menu, and give directions.

  6. Real Estate: Real estate agencies can use chatbots to provide property information, schedule property viewings, and answer common questions about buying or renting.

  7. Banking and Financial Services: Rule-based chatbots can assist customers with balance inquiries, transaction history, and frequently asked questions related to their accounts.

  8. Informational Websites: Websites focused on specific topics, such as news, weather, or local events, can use rule-based chatbots to deliver targeted information.

  9. Compliance and Legal Services: Businesses that need to provide information related to legal or regulatory compliance can use rule-based chatbots to ensure users receive accurate information.

  10. Education and Training: Educational institutions and online courses can use chatbots to answer student queries about course schedules, materials, and enrollment.

In these scenarios, rule-based chatbots excel because they handle routine and predictable interactions efficiently. They can free up human resources by automating these tasks, improving response times, and providing consistent and accurate information. However, this doesn't mean that industries listed above can only stick to rule-based chatbots.

Generative Artificial Intelligence-based Chatbots

Generative AI-based chatbots are a type of chatbot powered by machine learning and natural language processing (NLP) techniques to communicate with its users. These chatbots allow the user to respond dynamically and give more context to the bot which will help give the chatbot more information to process. This also allows the chatbot to take on a persona (which is the identity and personality of your conversational interface that makes the digital system feel more human.)

A study from the Georgia Institute of Technology found that most college-age adults preferred their robots to look like robots. Similarly, when we talk about virtual or computer-based systems. We do somehow expect them to respond back human-like. This is the main advantage of AI-powered chatbots.

Generative AI chatbots offer advanced natural language understanding and generation capabilities, but they also come with their own set of pros and cons, particularly in terms of cost, level of effort, timeline, and technical limitations:


These chatbots can now be used for various applications that were previously deemed as a limitation of rule-based chatbots. Because of its versatility to accept dynamic inputs, the chatbot can now effectively function as a virtual assistant, content generation, consultant and more.

They can communicate in multiple languages, making them suitable for a global audience.


Developing and deploying a generative AI chatbot can be a bit costly compared to rule-based chatbots.

The timeline for generative AI chatbots is often longer and fine-tuning and training can take time even after deployment.

Generative AI chatbots require ongoing monitoring and management to ensure that their responses align with business goals, remain up-to-date, and avoid harmful or inappropriate content generation.

Generative AI chatbots offer advanced conversational capabilities but come with higher costs, technical challenges, and the need for ongoing attention. Learn how AImagineers helps your business get the pros without suffering the cons of Generative AI.

Recommended to:

Businesses with projects that are not time-sensitive and have time to mature and develop properly.

A complex use case where normally a rule-based chatbot doesn't perform well.

What kind of industry will generative AI-based chatbots fit in?

E-commerce: Generative AI chatbots can assist customers with product recommendations, answer questions, provide information about products, and even generate dynamic, personalized content.

Customer Support: They can handle complex customer inquiries, troubleshoot issues, and offer more in-depth support, leading to improved customer satisfaction.

Content Creation: Businesses in publishing, media, and marketing can use generative AI chatbots to generate articles, reports, and marketing content, saving time and effort in content production.

Healthcare: Chatbots in healthcare can provide patients with information about medical conditions, schedule appointments, and offer support for managing health-related concerns.

Education: Educational institutions and e-learning platforms can use generative AI chatbots to assist students with coursework, answer questions, and provide explanations on various subjects.

Hospitality and Travel: Chatbots can assist with hotel reservations, and travel bookings, provide information about local attractions, and offer travel advice.

Finance and Banking: They can answer customer queries about account balances, and transaction history, and offer financial advice or investment information.

Human Resources: Generative chatbots can aid with onboarding, answer HR-related questions, and assist with employee inquiries.

Legal Services: Legal firms can use chatbots to provide basic legal information, schedule appointments, and assist with legal documentation.

Entertainment and Gaming: In the entertainment industry, chatbots can engage users with dynamic and interactive content, offer game tips, and answer questions related to entertainment products.

Hybrid Chatbots (The best of both worlds!)

Hybrid AI chatbots are valuable for businesses looking to strike a balance between precision and natural language understanding. They offer versatility, allowing for both standardized responses to common queries and more dynamic interactions when required. However, designing and maintaining a hybrid chatbot can be complex, and ongoing monitoring is essential to ensure that the rule-based and generative components work together effectively.

At AImagineers, we commonly follow a hybrid design as we can't simply ignore the advantages that both rule-based and AI-based systems bring. Imagine a rule-based chatbot having a personality that helps engage customers and de-escalate stressful troubleshooting issues, or simply having the ability to switch to a rule-based system while getting important dates and times for a calendar booking and then switching back to an AI-based when needed.


A balanced approach helps developers design a system that would rely on the precision of a rule-based system while maintaining the versatility of a generative AI.

Scalability - They can be designed to handle a wide range of topics and user queries while maintaining control over specific use cases.

This means that hybrid systems can help local and small businesses get in and use chatbots and scale up as needed based on needs.


Building hybrid chatbots can introduce complexity in terms of the design and integration which may require more technical expertise.

At this point and time, most hybrid systems are still in their early stages which means early adopters of the technology would have to go through teething issues at its initial stages.

Recommended to:

This is meant for businesses that pride in taking innovation as part of their operation and have the time to go through the development stage.

If your business has room to adopt new technology
"The global artificial intelligence market size is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030" - Forbes

What kind of industry will hybrid chatbots fit in?

Technology Companies: Leading tech firms can use hybrid AI chatbots to provide support, gather user feedback, and deliver personalized recommendations, enhancing the user experience.

E-commerce: Innovative e-commerce platforms can deploy hybrid chatbots to handle routine customer inquiries, offer tailored product suggestions, and create more engaging shopping experiences.

Healthcare Innovators: Healthcare companies can use hybrid chatbots to assist patients with appointment scheduling, provide medical information, and offer support for health-related concerns while maintaining compliance with evolving regulations.

Fintech Leaders: Innovative fintech companies can deploy chatbots to answer customer queries about financial transactions, and investments, and manage compliance requirements.

Education Technology (EdTech): EdTech firms can utilize hybrid chatbots to assist students with coursework, provide personalized learning experiences, and offer academic support, demonstrating a commitment to educational innovation.

Media and Content Creation: Companies in the media and content creation sector can use chatbots for content generation, idea brainstorming, and audience engagement, pushing the boundaries of creativity.

Travel Tech: Leading travel technology firms can deploy hybrid chatbots to assist with travel bookings, suggest itineraries, and offer valuable travel insights, providing innovative travel experiences.

Automotive Industry: Innovators in the automotive sector can use hybrid chatbots to enhance customer support, provide vehicle information, and deliver more interactive and engaging vehicle-related content.

Artificial Intelligence Startups: Startups specializing in AI can utilize hybrid chatbots to showcase their AI capabilities, engage with potential clients, and offer a glimpse of cutting-edge technology.

Real Estate Technology: PropTech companies can deploy hybrid chatbots to assist with property inquiries, provide property recommendations, and create more dynamic virtual property viewings.

In Conclusion

In the world of chatbots, choices can be both exciting and overwhelming, much like shopping for the perfect tech gadget. Just as I once meticulously compared laptops on a spreadsheet, selecting the right chatbot for your business can feel like a daunting task.

But fret not, I'm here to guide you through this decision. Whether it's a rule-based chatbot for streamlined interactions a generative AI chatbot for dynamic conversations, or even the best of both worlds with a hybrid chatbot, I'll help you find the right chatbot fit for your business.

Embrace the future of customer engagement and innovation with the chatbot that aligns with your unique needs. So, what are you waiting for? Let's chat about your next big step in business!

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