The following page provides general information about chatbots. Please engage your solution provider to get accurate information about their specific AI product or service. 

Change impact on business Low
Integration required Low to high
Technical knowhow Low to high
Data privacy Low to high
Cost to purchase Low to medium
Cost to implement Low to high
Potential benefits High



What is a chatbot?

A chatbot uses a combination of pre-programmed scripts and in more advanced versions, artificial intelligence (AI) to understand, process and respond to user inputs. Chatbots can be simple, handling tasks based on a set of rules, or more complex, using natural language processing (NLP) and machine learning to understand context and nuances in conversation. 

How does it work? 

A chatbot works by processing and responding to user inputs, typically text or speech, using a combination of predefined rules, algorithms, and in more sophisticated versions, artificial intelligence (AI) techniques. The functionality and complexity of a chatbot can vary widely, from simple, rule-based systems to advanced AI-driven agents capable of understanding natural language.

Where can you apply this?

Chatbots have a wide application in any communication and engagement of customers, employees, vendors or other stakeholders. Some familiar applications include:

  • Customer service
  • Corporate communication
  • Human resources
  • Lead generation
  • Procurement
  • and many more.

What are the change impacts on your business?

Change impacts are low as chatbots are intuitive to use by customers, employees and others. Communication to stakeholders are required but no formal training.  

How difficult is this to implement?

Very easy to more moderate depending on integration and functionality.

Is technical knowledge required to implement this?

Depends on the level of integration required with business systems and infrastructure. 

How expensive is it?

From a few dollars per month for off the shelve apps with limited functionality to more expensive custom built solutions.

Is there a data privacy requirement?

Yes, if the chatbot access customer or employee data.

Other considerations

Chatbots need accurate and quality data to be successful. 



  • 24/7 availability
  • Instant response time
  • Cost efficiency
  • Scalability
  • Personalization and data collection


  • Limited understanding and responses
  • Lack of emotional intelligence
  • Dependency on quality data and training
  • Privacy and security concerns
  • Implementation and maintenance costs