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Battle of the Bots: Chatbots vs. Virtual Assistants
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Battle of the Bots: Chatbots vs. Virtual Assistants

Explore the distinct roles and capabilities of chatbots and virtual assistants, along with which one would be best suited for your needs.

Ankur A. Patel's avatar
Saleem Maroof's avatar
Ankur A. Patel
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Saleem Maroof
Nov 28, 2023
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Battle of the Bots: Chatbots vs. Virtual Assistants
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Key Takeaways

  • Chatbots and virtual assistants have unique functionalities and serve different purposes in digital communications.

  • While chatbots use rule-based systems for user interactions, virtual assistants use more advanced AI technologies for more natural conversations.

  • Both chatbots and virtual assistants offer 24/7 support, enhancing customer experience with immediate responses and continuous support. 

  • Virtual assistants excel at personalization, learning from user interactions to provide tailored responses and services.

  • Chatbots are more cost-effective and quicker to deploy, while virtual assistants require more development and maintenance resources due to complex AI algorithms.

  • The choice between the two depends on the business’s needs, with chatbots more suited for simpler tasks and virtual assistants more suited for more complex situations.


This post is sponsored by Multimodal, an NYC-based startup setting out to make organizations more productive, effective, and competitive using generative AI.

Multimodal builds custom large language models for enterprises, enabling them to process documents instantly, automate manual workflows, and develop breakthrough products and services.

Visit their website for more information about transformative business AI.


Ankur’s Newsletter is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.


Chatbots and virtual assistants have emerged as two pivotal technologies that are reshaping how we communicate with businesses. 

While they are often mentioned in the same context, both tools have distinct functionalities, purposes, and complexities. Although they have some similarities, their roles and impacts are uniquely their own. 

But what are the key differences that set them apart from each other, and which one has the upper hand?

Chatbots

Chatbots are software applications designed to simulate conversations with human users. They are programmed to respond to text or voice commands, making them versatile tools for various situations in online interactions. Business leaders have reported chatbots to bring a 67% increase in sales.

Some of the key aspects of chatbots include:

  • Functionality: Chatbots are typically designed for specific tasks, ranging from answering frequently asked questions to handling basic customer service inquiries. Notably, their responses are based on a set of pre-defined rules or scripts.

  • Technology: The simpler chatbots operate on a rule-based system that responds to specific inputs with pre-set outputs. However, more advanced chatbots use natural language processing (NLP) and machine learning (ML) to respond to queries more naturally.

  • User interaction: Chatbots are primarily text-based, although some can handle voice inputs. They interact with users through conversational interfaces on websites, messaging apps, or virtual assistant platforms.

  • Applications: The use of chatbots is widespread across various industries. In customer service, they provide quick responses to common queries, reducing wait times. In e-commerce, they assist in product selection and troubleshooting.

Chatbots represent a significant stride in automating and enhancing customer interactions. They serve as a bridge between businesses and users by offering a quick, cost-effective way to handle routine inquiries.

It’s important to note that not all chatbots use artificial intelligence (AI), but modern chatbots using AI are becoming more common.

An example of a chatbot providing product support. (Source)

Advantages of Chatbots

The main advantage of chatbots is their ability to provide immediate responses, which is vital for customer engagement and satisfaction. 

However, chatbots present other advantages as well.

One of which is 24/7 availability. They can operate around the clock, providing instant responses to customer inquiries at any time. This continuous availability enhances customer experience and satisfaction, as users can get assistance whenever needed. 

A human agent can only handle one conversation at a time. Chatbots can handle thousands of users simultaneously, making them an appealing option for businesses looking to scale their customer service efforts. Moreover, chatbots minimize the chance of human error, resulting in reliable customer service and a better user experience.

Due to their interactive nature, chatbots can make the user experience more engaging. They can provide personalized recommendations and guide users through website navigation if they have any issues.

Moreover, they can collect and analyze data from their interactions with users. This data can provide valuable insights into customer preferences and behavior, which helps improve business services and create more tailored marketing strategies.

Virtual Assistants

Virtual assistants have become integral to both personal and professional landscapes, offering a wide range of services using advanced natural language understanding. The voice recognition market is expected to reach $27.2 billion globally by 2026, demonstrating the rise in popularity of virtual assistants.

They are conversational AI-powered virtual agents capable of performing tasks for individuals or businesses. These range from simple tasks like setting alarms and providing weather updates 

to more complex tasks like controlling smartphone devices. 

Moreover, virtual assistants can understand natural language, which makes them user-friendly and easy to interact with. Consequently, they are accessible to many users, including those with less technical knowledge. 

Different types of intelligent virtual assistants exist, ranging from voice-activated assistants like Apple’s Siri to chat-based assistants integrated into websites and business systems. This makes them an integral part of many people’s daily lives. They are also increasingly used in business settings, helping perform tasks like customer service, data management, and workflow automation.

The workflow of how an AI virtual assistant works. (Source)

Advantages of Virtual Assistants

In particular, virtual assistants are adept at providing personalized assistance. They learn from user interactions, allowing them to tailor their responses and services based on individual preferences and past behaviors. 

Task management is another strong suit of virtual assistants. They can:

  • Manage schedules

  • Set reminders

  • Make appointments

  • Provide timely alerts

Another area where virtual assistants shine is multitasking. Humans have trouble completing several tasks at once. However, virtual assistants can juggle various functions simultaneously, from managing calendars to conducting online transactions.

They can also communicate and provide support in multiple languages, which makes them a valuable asset for businesses with a diverse customer base. Businesses can cater to other countries by allowing users to communicate with the virtual assistants in their preferred language.

In addition, virtual assistants can be customized to fit specific business needs and integrate with systems like customer relationship management (CRM) software, databases, and other digital tools. This allows for a more seamless workflow and better data synchronization.

Which One Has the Upper Hand?

Determining which of these technologies holds the upper hand requires a deeper look into comparing different aspects, such as user experience and scope of use.

Scope of Use

Chatbots are designed to handle more specific tasks. One example is a chatbot on a retail website that helps customers track their orders or answer common questions about shipping policies. Their functionality is usually limited to the script or rules they’re programmed with, which makes them ideal for straightforward tasks where the range of user queries is limited.

In contrast, virtual assistants are equipped to handle a wider array of tasks. They can help with managing emails and providing recommendations based on user preferences. Virtual assistants leverage AI capabilities to handle more challenging tasks and queries, making them suitable for scenarios where user needs are less predictable.

User Experience

The interactions with chatbots are typically transactional. They’re great for quick and efficient answers to standard questions but lack the ability to engage in more meaningful or context-driven conversations. As a result, this can lead to a less satisfying user experience if the user’s needs go beyond the chatbot’s capabilities.

Virtual assistants offer more dynamic interactions by being able to have human-like conversations. They can understand context, remember past conversations, and anticipate needs based on user behavior. Consequently, users will have more engaging and personalized experiences since the virtual assistant can adapt its response to the individual user.

Cost and Development Time

Generally, chatbots are less expensive and faster to develop and deploy than virtual assistants. This is because they operate on a set of predefined rules and don’t require the sophisticated AI algorithms that virtual assistants need. For businesses looking for a quick solution to handle simple customer queries and tasks, chatbots are a cost-effective solution.

Developing a virtual assistant is a more resource-intensive process. It involves more complex programming and continuous learning to improve its capabilities. This makes them more expensive in terms of initial development and ongoing maintenance. Although, the investment can be justified by their versatility and the enhanced user experience they provide.  

Learning and Adaptation

Chatbots typically don’t learn from past interactions, providing scripted answers. Their responses are based on a predetermined set of rules and scripts, which means they can’t adapt or improve over time based on user interactions. This limits their ability to handle queries or tasks that deviate from their programmed knowledge base.

On the other hand, the ability to learn and adapt is one of the key strengths of virtual assistants. They use AI and ML to analyze past interactions and user data to improve their responses. This learning capability allows them to become more efficient and personalized in their assistance over time, offering a service that evolves with the user’s needs through relevant responses.

A direct comparison of chatbots and virtual assistants in five different aspects. (Source)

Looking Ahead

Both technologies offer unique advantages, making them complementary tools in the digital ecosystem.

Chatbots offer a cost-effective solution that handles routine tasks and queries well. They can handle large numbers of simpler queries and ensure customer engagement remains consistent.

Virtual assistants bring a level of sophistication and personalization that far surpasses chatbots. Their ability to learn, adapt, and handle complex tasks makes them invaluable for businesses aiming to provide a more comprehensive and engaging user experience.

Ultimately, the choice between chatbots and virtual assistants depends on a business's specific needs and goals. Chatbots are ideal for straightforward interactions, while virtual assistants excel when a more adaptive approach is required.

Ankur’s Newsletter is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

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Discussion about this post

User's avatar
John Faig's avatar
John Faig
Dec 25, 2023

Rule-based chatbots are labor-intensive to maintain and have zero-day limitations. I'd bet that AI Assistants can provide some value on the first day and the user prompts collected and used to program a chatbot.

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