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3 Most Important Types Of Chatbots & ML Algorithms Explained


Did you have any idea that a manifold of chatbots exist out there? Moreover, each distinct chatbot category utilizes a divergent machine learning algorithm! In this expository composition, we shall delve into the most prevalent kinds of chatbots along with the machine learning algorithms they employ in their creation. Furthermore, we shall engage in a discourse concerning the practical employment of each chatbot classification to augment your marketing maneuvers or website.

Whether you are an amateur in the chatbot arena or an experienced chatbot connoisseur looking to elevate your current bots, do read on, for we shall expound in great detail!

Basics – Types Of Chatbots 

types of chatbots

In this digital epoch, chatbots are ubiquitous, in all their variegated forms, equipped with a unique mixture of features and capabilities. In the following examples, we shall scrutinize the diverse types of chatbots and machine learning algorithms, enabling you to handpick the perfect one for your distinct requisites.

The fundamental categories of chatbots encompass rule-based and AI-based chatbots.

  • The rule-based chatbots are the most rudimentary, adhering to a predetermined set of rules to retort to user input.
  • AI-based chatbots, in contrast, employ the wizardry of artificial intelligence to comprehend user input and provide a nuanced and informed response.

Natural Language Processing (NLP) and Natural Language Understanding (NLU) are the preeminent machine learning algorithms for chatbots. NLP enables the processing and assimilation of human language, while NLU endeavors to unravel the underlying intent of the user input.

In quest of a chatbot that can simulate human-like conversations? Opt for an AI-based chatbot. However, if a chatbot that can furnish basic information or execute simplistic tasks will suffice, then a rule-based chatbot may be the way to go.

Remember, irrespective of your choice of chatbot, make certain to select one that employs the most fitting machine learning algorithm so that you can make the most of your investment.

In 2021, there was a 43% rise in the number of chats compared to 2020.


Supervised Chatbots – What are they and how do they work?

Supervised chatbots are trained using a labeled dataset

This dataset is used to train the machine learning algorithm that powers the chatbot. The labels indicate the desired output for each input. 

For example, if you were training a chatbot to identify types of animals, the input might be a photo of an animal and the label would be the species of that animal. The chatbot would then use the labeled dataset to learn how to map inputs (photos of animals) to outputs (species of animals).

Supervised chatbots are trained using a variety of different machine learning algorithms

Some popular algorithms include support vector machines, decision trees, and artificial neural networks. Each algorithm has its strengths and weaknesses. 

For example, decision trees are very good at handling data with a lot of features (e.g. photos of animals), but they can be prone to overfitting. Support vector machines are less flexible than decision trees, but they tend to be more accurate.

Which algorithm you use to train your chatbot will depend on your specific needs and objectives. In general, though, decision trees and support vector machines are two of the most popular choices for supervised chatbot training.

5 benefits of using a supervised chatbot

A supervised chatbot can be a great asset to any business. Here are five benefits of using a supervised chatbot:

#1 They can help to automate customer service tasks

The efficacious and versatile chatbot is a jack-of-all-trades, for one of its myriad of uses lies in automating customer service tasks. This pragmatic approach to customer service not only eases the burden on your support staff but also empowers them to concentrate on more intricate and perplexing customer inquiries, while delegating simpler tasks to the chatbot.

#2 Chatbots can help to deflect some of the customer service load from your team

Chatbots also prove to be a valuable asset in deflecting the avalanche of customer service queries that your team is beset with daily, thus reducing their workload. Consequently, this shrewd approach to customer service results in improved customer satisfaction rates, as wait times for assistance are significantly reduced, ensuring that your patrons are attended to in a timely manner.

#3 Chatbots can help to gather data about your customers’ needs and preferences

The prolific use of chatbots in gathering and procuring data pertaining to customers’ needs and preferences cannot be overstated. This indispensable data can then be utilized to refine and augment your products or services, ensuring that they are tailored to suit your customers’ desires with finesse and panache.

#4 Chatbots can be used to upsell or cross-sell products and services

Furthermore, chatbots are a boon to enterprises for upselling or cross-selling their products and services. Take, for instance, a scenario where a customer is searching for a specific item; the chatbot can then adroitly suggest other related items that may pique the customer’s interest, augmenting their overall satisfaction and experience.

#5 Chatbots can help to build brand awareness and loyalty

Beyond this, chatbots are an invaluable asset in developing brand awareness and nurturing brand loyalty. By conferring a favorable customer experience, chatbots can instill a sense of faith and trust in the customer, fostering their return to your establishment and ensuring that they remain a regular patron.

Unsupervised chatbots – What are they and how do they work?

Unsupervised chatbots, an autonomous branch of artificial intelligence, are capable of learning and adapting independently, without any human intervention or surveillance. Their functionality revolves around extensive data analysis, predominantly from conversational sources, which enables them to detect and extract patterns and insights. As a result, they can generate contextually relevant responses that do not require pre-programmed regulations or scripts.

This advanced level of versatility and adaptability is accompanied by a margin of error, rendering them unsuitable for deployment in critical applications such as customer service. However, as these chatbots continue to learn and evolve, their adoption rate is expected to increase in the foreseeable future.

The superiority of unsupervised algorithms stems from their autonomy, as they do not rely on pre-existing datasets for reference. This enables them to generate more innovative and contemplative responses. For instance, the unsupervised classification of unmarked faces can cluster them into distinct categories such as landscapes or human faces, which are fundamentally different from animals like cats or dinosaurs.

Benefits of using an unsupervised chatbot

An unsupervised chatbot has many benefits, chief among them being the ability to interact with customers without the need for human intervention. This can save businesses a lot of money, as they no longer need to pay someone to monitor and manage the conversation. 

Furthermore, the unparalleled utility of unsupervised chatbots is exemplified in their capacity to provide seamless, round-the-clock customer service, which is particularly advantageous for businesses operating across different time zones or those with extended hours of operation.

In addition to this, unsupervised chatbots are equipped to foster and sustain meaningful customer relationships by offering customized recommendations and follow-up messages.

Given these diverse advantages, the implementation of unsupervised chatbots can prove to be an extremely lucrative investment for businesses of all sizes.

Reinforcement Chatbots – What are they and how do they work?

Reinforcement chatbots, a fascinating breed of artificial intelligence, are granted with the capacity to ameliorate their performance by learning from their interactions with users. The fundamental objective of reinforcement learning is to optimize the chatbot’s long-term success by cherry-picking actions that lead to the most favorable outcomes.

However, attaining this feat requires the chatbot to grasp the user’s preferences and the anticipated ramifications of diverse actions. Consequently, an abundance of data is crucial, which is why reinforcement chatbots are primarily employed in tasks where a substantial amount of training data is available, such as playing games or controlling robots.

Reinforcement learning can optimize various facets of the chatbot’s behavior, including the quality of its responses, response time, or the overall satisfaction of the user. The chatbot can also be configured to experiment with divergent modes of interaction with users to unearth innovative and enhanced strategies.

One of the notable advantages of reinforcement learning is its ability to enhance the chatbot’s performance continually without the need for explicit programming by humans. As a result, the chatbot can adapt promptly to alterations in the user’s preferences or environment.

Despite its potential, it is crucial to remember that chatbots are not infallible, and errors may occur. Thus, it is essential to have a contingency plan to tackle such situations, such as having a human operator on standby to intervene in the conversation if the chatbot experiences difficulty.

5 benefits of using a Reinforcement Chatbot

A reinforcement chatbot, an automated program that can facilitate learning and improvement of skills, provides five distinct advantages:

You can get immediate feedback

You can receive immediate feedback. When you make an error, the chatbot can instantaneously identify and pinpoint it to you. This feature stands in contrast to learning from a book or an instructor, who may only discover your mistake much later.

You can practice at your own pace

Practicing is a conundrum, as it can be a challenge to stay in sync with the rest of the class. But, fear not, as chatbots provide a unique answer to this predicament. They enable you to practice autonomously, allowing you to proceed at your own rhythm without being impacted by others.

Chatbots grant a rare degree of command over the learning process, empowering you to decide when to practice, for how long, and when to take breaks. This unprecedented degree of elasticity is critical, as it enables you to tailor your learning journey to your particular necessities and proclivities.

You can get help when you need it

If you struggle to grasp a concept, the chatbot can provide auxiliary explanations and examples. Moreover, you can inquire about anything you need clarification on at any moment.

You can review concepts whenever you want

Need to brush up on a skill? With a chatbot, you can go over the material as many times as you want without feeling embarrassed.

You can have fun while you learn

Learning with a chatbot can be enjoyable and even addictive. You might not even realize how much you’re learning until after you’ve been using the chatbot for a while. Try it out for yourself and see!

Myths Busted – Supervised vs Unsupervised vs Reinforcement

With the recent advancements in chatbot technology, there is a lot of confusion about which type of chatbot is best suited for certain tasks. Here, we will dispel some common myths about Supervised, Unsupervised, and Reinforcement chatbots.

Myth #: All chatbots need to be highly accurate to be effective

Fact: Chatbots need not be foolproof accurate to be called as “effective”. Though a quality assistance is needed without the chatbot failing to answer basic questions effectively and failing to handle the information load, you can still have a chatbot that is working and functional. You can avoid sounding impersonal and robotic and strike a balance between the abilities of the chatbot and realistic ideals.

Myth #: Supervised chatbots are the only chatbots that can be trained

Fact: All chatbots, including supervised and unsupervised chatbots, can be trained. The difference is that supervised chatbots are trained using a labeled dataset, while unsupervised chatbots are trained using an unlabeled dataset.

Myth #: Unsupervised chatbots are not as effective as supervised chatbots

Fact: It is a common belief that unsupervised chatbots are less effective than their supervised counterparts. However, the truth is that unsupervised chatbots can be equally as potent, contingent upon the specific task at hand. For instance, unsupervised chatbots are often superior at handling open-ended duties, such as natural language processing and text classification, since they can recognize patterns in the data and identify trends with greater agility.

Myth #: Reinforcement learning is only for advanced users

Fact: Contrary to popular belief, there’s a common misconception that only tech gurus can leverage reinforcement learning for their chatbots. However, the truth is that anyone from novice to experienced employers can utilize this technique to enhance their bots’ efficacy. It’s as easy as beginning with a basic training task and progressively ramping up the intricacy as you advance. This method enables you to achieve step-by-step improvement and guarantees that the bot can acclimate to shifting circumstances.

How to choose the right algorithm for your business

Instead, the ideal algorithm for your business hinges upon various factors, such as the kind of data you possess, the complexity of the problem you’re aiming to tackle, and the available resources at your disposal.

Now that you are familiar with the distinct categories of machine learning problems, you can begin to whittle down your algorithmic options. Certain essential factors must be taken into account to ensure that you opt for the right algorithm, such as the nature of the data being analyzed, the desired level of accuracy, the processing speed required, and the hardware limitations of your business.

The type of data you have

The initial factor to bear in mind pertains to the character of the data at your disposal. Certain algorithms demand distinct varieties of data, such as numerical data for regression algorithms or categorical data for classification algorithms.

The nature of the problem

Moreover, the second factor to ponder is the essence of the problem you seek to unravel. Certain problems lend themselves more to particular algorithms than others. For instance, problems with a high degree of structure and firmly defined rules are frequently better addressed with traditional algorithms, whereas problems that are less structured and necessitate greater flexibility may benefit from machine learning algorithms.

The resources you have available

Lastly, the resources at your disposal constitute the third factor to consider. Some machine learning algorithms are data-intensive and demand considerable computational resources, while others are more efficient and can run on less powerful hardware. Your team’s expertise also plays a vital role in selecting an algorithm, as some algorithms necessitate more domain knowledge for effective implementation.

After considering these factors, you can identify the machine learning algorithm that is most suitable for your business. In case you still feel uncertain, numerous resources are at your disposal, such as books, websites, and courses, to assist you in selecting the most appropriate algorithm. With the right algorithm, you can gain invaluable insights from your data and make data-driven decisions that can propel your business forward.


The manifold types of chatbots and machine learning algorithms can leave you in a quandary as to which one suits your business needs. While supervised, unsupervised, and reinforcement learning constitute the most prevalent machine learning algorithms, each algorithm possesses inherent strengths and weaknesses. Conducting a comprehensive trial-and-error method using a few disparate algorithms is the optimal approach to determine the most fitting chatbot or machine learning algorithm for your specific needs. Have you implemented a chatbot or machine learning algorithm in your business before? Let us know your experience.

When it comes to getting started with chatbot marketing, it’s understandable to feel overwhelmed. Fortunately, our team at 12 channels is standing by, ready to lend our expertise and guidance to help you navigate this exciting new frontier.

Don’t wait any longer to take advantage of the benefits of chatbot marketing. Reach out to us today, and we’ll show you firsthand just how powerful this tool can be. You might even be astounded by its level of effectiveness! So don’t hesitate – let’s get started and see where chatbot marketing can take your business.

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