Chatbots have become increasingly popular in recent years, offering businesses the ability to provide instant customer service and collect valuable data on customer behavior. According to Gartner, by 2021, more than 50% of businesses will invest more in chatbot creation than in traditional mobile app development.

While chatbots can be beneficial to businesses in various industries, the type of chatbot used can impact the customer base it serves. There are two main types of chatbots: rule-based and AI chatbots.

Rule-based chatbots are the most basic and common type of chatbot. These bots use “if/then” logic to hold a basic conversation, with a human operator mapping out the conversation's logical next steps and call-to-action buttons. Rule-based chatbots are often used in live chat features on social media, e-commerce sites, and other platforms.

Social media chatbots are similar to rule-based chatbots and are typically found on platforms like Facebook and Twitter. Brands like Sephora and Whole Foods use Facebook chatbots to automate customer service, online sales, and marketing. Twitter chatbots are also used to communicate with audiences, such as Etsy's customer service chatbot.

AI chatbots are more complex than rule-based chatbots, with two main types: natural language chatbots and machine learning chatbots.

Natural language chatbots use natural language processing (NLP) to understand a visitor's intent and context, allowing for a more personalized conversation. Visitors can communicate with the chatbot like they would in a text message conversation, rather than navigating through menus and buttons.

Machine learning chatbots are similar to natural language chatbots, but they use artificial neural networks to store large sets of data, allowing them to learn and predict a conversation's next steps. These chatbots deliver a personalized experience for visitors by retaining information from previous conversations and questions.

Overall, the type of chatbot used depends on the business's needs and the type of customer interaction they wish to provide.