What is Chatbots?
Chatbots are computer programmes that can have conversations with humans using natural language. They are designed to simulate how a human would behave as a conversational partner, and can respond to questions, requests, and general conversation.
Chatbots typically use Artificial Intelligence (AI) and Natural Language Processing (NLP) to understand what a person is saying and determine the right response. Chatbots are designed to have conversations that feel natural and human-like from the perspective of the human chatting with them.
You’ve likely encountered Chatbots through interacting with your favourite websites or even your smart speakers, as they are used in applications like customer service, information providers, entertainment, and personal assistants.
Chatbots in financial services
Banks, insurers and other firms use chatbots to answer common customer queries and route more complex requests to people. In a regulated environment, a chatbot needs to give accurate information, avoid straying into personal advice where that is not permitted, and recognise when a customer — particularly a vulnerable one — should be passed to a human.