The benefits of using chatbots include expanded self service, improved customer experience, the ability to improve over time, security, personalization, accessibility, and efficiency. Chatbots increase the capacity of human agents by taking over repetitive and time consuming tasks. This frees up the human agent to focus on more complicated support cases that require complex problem solving.

Natural language processing is an artificial intelligence algorithm that conversational customer service chatbots use to carry out human-like conversations. Chatbots use NLP by recognizing keywords and phrases in order to understand, interpret, and respond to human language.

Because conversational chatbots can tackle the low hanging fruit of customer service work such as order status updates, simple account lookups, or verifications, they give organizations the ability to automate repetitive, labor-intensive processes. This reduces human labor costs and increases operational efficiency. As a result of the efficiency gains created by chatbots, errors are minimized, which in turn reduces the cost of repeat work as well as customer and agent attrition.