Generative AI Chatbot

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April 18, 2023

A generative AI chatbot is a type of conversational AI system that uses deep learning and natural language processing (NLP) techniques to generate human-like text responses in real-time. These chatbots can hold text-based conversations with users, understand user input, and generate contextually relevant responses. The key features of Gen AI are they have improved NLU capabilities, these models offer better text generation, contextual understanding, and reduced biases, they are trained on vast datasets, they have become more capable, there are increasing concerns about their ethical use, and such more.

Many organisations have embraced generative AI. One-third of the survey participants report that their organisations now regularly employ generative AI in at least one of their functions. This means that 60 percent of organisations that have adopted AI are utilising generative AI.

Future Trends: In the future, we can expect continued advancements in generative chatbots, including better multitasking, improved emotional intelligence, and increased use of generative AI in virtual reality and augmented reality environments.

What are generative AI chatbots?

Generative AI chatbots are artificial intelligence-powered chatbot systems designed to generate human-like text responses in natural language during text-based conversations with users. These chatbots utilise advanced deep learning techniques, particularly models like GPT (Generative Pre-trained Transformer), to understand user input, context, and intent, and then formulate appropriate and contextually relevant textual responses.

Key characteristics of generative AI chatbots

  1. Natural Language Understanding (NLU): They are equipped with NLU capabilities that allow them to comprehend the meaning and context of user messages, enabling more human-like and contextually appropriate responses.
  2. Text Generation: These chatbots generate text responses rather than relying solely on pre-programmed or rule-based responses. This enables them to have dynamic and open-ended conversations.
  3. Training Data: Generative AI chatbots are trained on extensive datasets containing text from various sources, which helps them learn grammar, syntax, and a wide range of topics, making them versatile in conversations.
  4. Context Retention: They have the ability to maintain context over multiple turns of conversation, allowing for more coherent and context-aware responses, even in complex dialogues.
  5. Applications: Generative AI chatbots find applications in a wide range of fields, including customer support, content creation, virtual assistants, education, healthcare, and more.
  6. Customization: Organisations can often customise these chatbots to align with their brand voice and specific use cases. This includes training them on domain-specific data.
  7. Advancements: The technology behind generative AI chatbots continually evolves, with newer iterations and models offering improved performance and capabilities.
  8. Ethical Considerations: The use of generative AI chatbots raises ethical concerns, including the potential for biased or harmful responses, privacy issues, and misuse of the technology.

Generative AI chatbots have gained popularity due to their ability to engage users in natural and interactive conversations, provide information, and assist with tasks. They play a significant role in enhancing customer experiences, automating routine tasks, and expanding the possibilities of AI-driven interactions in various industries.

How does generative AI Chatbots work?

Generative AI chatbots work through a combination of natural language processing (NLP) and deep learning techniques. A Generative AI functions in the following ways:

Training Data

Generative AI chatbots are trained on vast datasets of text from the internet, books, articles, and other sources. This training data helps them learn grammar, vocabulary, context, and various language patterns.

Deep Learning Models

These chatbots often rely on deep learning models, such as Transformers, to process and generate text. One of the popular models used for generative chatbots is GPT (Generative Pre-trained Transformer).

Input Processing

  • When a user sends a message or query, the chatbot first preprocesses and tokenizes the input, breaking it down into smaller units (tokens).
  • It then uses these tokens to create an initial representation of the user’s message.

Context Understanding

  • The chatbot considers the conversation history and maintains context. It remembers the previous messages exchanged in the conversation, including both user queries and its own responses.
  • This context helps the chatbot understand the current message’s context and meaning.

Text Generation

  • Using the contextual information and the initial representation of the user’s message, the chatbot generates a response.
  • It does this by predicting the next words or tokens in the response based on its training data and learned language patterns.

Response Post-processing

  • The generated response may contain placeholders or incomplete sentences, especially in the early stages of the conversation.
  • The chatbot post-processes the response to make it more coherent, fills in missing information, and ensures that it aligns with grammatical and contextual norms.

User Interaction

  • The chatbot sends the generated response back to the user.
  • It listens for the user’s next input and repeats the process, maintaining the conversation context throughout.

Iterative Learning

  • Generative AI chatbots can improve over time with more training data and user interactions.
  • Developers often fine-tune the chatbot’s performance by providing feedback and retraining it periodically.

Ethical Considerations

  • Developers need to consider and implement ethical guidelines to ensure that the chatbot provides safe and unbiased responses and respects user privacy.

What is the Difference Between Generative AI and AI?

“AI” is an extensive concept encompassing diverse technologies and methodologies aimed at crafting systems or machines with the capacity to execute tasks that typically necessitate human intelligence. On the other hand, “Generative AI” constitutes a particular subdomain within the realm of AI. Below are the key distinctions between the two:

CATEGORIESArtificial Intelligence (AI)Generative AI
ScopeAI serves as a comprehensive term encompassing a vast spectrum of techniques and technologies, including rule-based systems, machine learning, deep learning, natural language processing (NLP), computer vision, and more. AI systems are adaptable for various purposes, spanning problem-solving, pattern recognition, decision-making, and automation.Generative AI, a subset of AI, has a precise focus on developing systems capable of producing fresh data, such as text, images, or music, that closely resembles human-generated data. This often hinges on deep learning models like Generative Adversarial Networks (GANs) or Generative Pre-trained Transformers (GPT).
FunctionAI encompasses a wide gamut of functions, ranging from rudimentary rule-based decision-making systems to intricate neural networks capable of natural language comprehension, image identification, and more. AI can be deployed for tasks like data analysis, autonomous driving, recommendation systems, and speech recognition, among myriad others.Generative AI, as its name implies, centres primarily on data generation. This encompasses generating text resembling human language, crafting lifelike images, composing music, or even generating video content. It predominantly finds application in creative endeavours and content generation.
ExamplesInstances of AI applications encompass voice assistants like Siri and Alexa, self-driving vehicles, recommendation systems akin to Netflix’s recommendation engine, and spam email filters.Illustrations of generative AI applications encompass GPT-3, which produces human-like text, DeepDream, generating surreal images, and AI-driven music composers crafting original compositions.
Learning ApproachAI systems may adopt diverse learning approaches, including supervised learning, unsupervised learning, reinforcement learning, and others, contingent upon the specific task and objectives at hand.Generative AI frequently leans towards unsupervised learning techniques, where the system learns from extensive datasets without explicit labels or guidance. Its focus lies in discerning patterns and structures within the data to generate comparable outputs.

In short, AI constitutes a broad domain encompassing an array of technologies and strategies to emulate human intelligence, whereas generative AI represents a specialized subset of AI dedicated to creating systems that can generate fresh data, such as text or images. Generative AI is merely one facet within the expansive landscape of AI, which encompasses a myriad of applications and methodologies.

Examples Of Generative AI Chatbot?

Here are some recent, widely recognized examples of generative AI interfaces:

1. ChatGPT

  • ChatGPT, developed by OpenAI, exemplifies text-to-text generative AI. Essentially, it’s an AI-driven chatbot proficient in engaging users through natural language conversations.
  • Users can pose queries, engage in interactive dialogues, and instruct it to craft text in various styles or genres, including poetry, essays, stories, or recipes, among others.
  • A free version of ChatGPT was launched in November 2022, accessible online. OpenAI also offers the ChatGPT API, alongside enterprise subscription and embedding options.


  • DALL-E, another OpenAI creation, showcases text-to-image generative AI capabilities. It debuted in January 2021, leveraging a neural network trained on images paired with textual descriptions.
  • Users provide descriptive text, and DALL-E generates photorealistic images based on the given prompts. It can also generate diverse variations of the image in various styles and perspectives.
  • Additionally, DALL-E can perform image editing tasks, including making alterations within an image (Inpainting) and extending the image’s boundaries or proportions (Outpainting).

3. Bard

  • Bard is a text-to-text generative AI interface built on Google’s expansive language model, LaMDA (Language Model for Dialogue Applications). Similar to ChatGPT, Bard operates as an AI-powered chatbot capable of responding to queries and generating text based on user prompts.
  • Google positions Bard as a complementary experience to its search engine, Google Search.
  • In March 2023, Bard was made available to the public in the United States and the United Kingdom, with plans for further expansion to additional countries and languages.
  • It garnered attention in February 2023 for disseminating incorrect information in a demonstration video, leading to a notable drop of approximately 9% in Alphabet Inc. (GOOG, GOOGL) shares in the ensuing days.

Types Of Generative AI models

Generative AI models exhibit a diverse array, each meticulously tailored to specific tasks and applications. Some common types of Generative AI are given below:

  1. Variational Autoencoders (VAEs): VAEs constitute a generative model harnessed for unsupervised learning. Their core function is to master the art of encoding and decoding diverse data types, such as images or text, by skillfully mapping them into a latent space. VAEs find frequent application in the generation of novel data points and the meticulous reconstruction of images.
  2. Generative Adversarial Networks (GANs): GANs introduce a captivating duel between two neural networks: a generator and a discriminator. These adversaries engage in a competitive training regimen. The generator fabricates data, while the discriminator astutely assesses its authenticity. GANs enjoy widespread use in crafting images, videos, and remarkably lifelike content.
  3. Recurrent Neural Networks (RNNs): RNNs emerge as a distinguished breed of neural network architecture, tailor-made for sequence generation tasks. Their versatility shines through in endeavours involving natural language generation, text composition, and the prediction of time series data.
  4. Long Short-Term Memory (LSTM) Networks: LSTMs stand as a specialized class of RNNs meticulously engineered to surmount the obstacle of vanishing gradients. Their proficiency comes to the fore in sequence-to-sequence missions, encompassing language modelling and the art of text generation.
  5. Transformers: Transformers have indelibly reshaped the landscape of natural language processing and generative undertakings. Noteworthy models such as GPT (Generative Pre-trained Transformer) and BERT (Bidirectional Encoder Representations from Transformers) have marked milestones in the realms of text generation, linguistic comprehension, and a myriad of NLP tasks.

Some others may include Autoencoders, Sequence-to-Sequence (Seq2Seq) Models, Restricted Boltzmann Machines (RBMs), PixelCNN and PixelRNN and Hybrid Models.
These diverse generative AI models each offer unique strengths and functionalities, serving as indispensable tools across a spectrum of domains and applications.

What are Dall-E, ChatGPT and Bard?

DALL-E, ChatGPT, and Bard are advanced AI models and interfaces developed by leading technology companies for various natural language understanding, text generation, and conversational applications. Here’s a brief overview of each:

1. DALL-E:

  • Developed by: OpenAI
  • Type: Text-to-Image Generative AI
  • Description: DALL-E is a groundbreaking generative AI model introduced by OpenAI in January 2021. It is capable of generating images from textual descriptions. For instance, you can describe a concept or scene in words, and DALL-E will generate a corresponding image that aligns with the description. It can also create variations of images in different styles and perspectives based on textual prompts.
  • Applications: DALL-E has applications in creative content generation, art, design, and any scenario where text-to-image conversion is useful.


  • Developed by: OpenAI
  • Type: Text-to-Text Generative AI, Chatbot
  • Description: ChatGPT is a chatbot powered by advanced generative AI. It’s designed to engage in text-based conversations with users, understand natural language queries, and provide contextually relevant responses. ChatGPT is capable of answering questions, engaging in discussions, and generating text in various styles or genres, such as poetry, essays, stories, and more. It was made available in a free version online in November 2022 and also offers enterprise-level services and APIs.
  • Applications: ChatGPT has applications in customer support, content generation, virtual assistants, and general natural language understanding tasks.


  • Developed by: Google (using the LaMDA language model)
  • Type: Text-to-Text Generative AI, Chatbot
  • Description: Bard is a chatbot powered by Google’s large language model, LaMDA (Language Model for Dialogue Applications). Similar to ChatGPT, Bard is designed to answer questions and generate text-based responses based on user prompts. It’s positioned as a complementary experience to Google Search and is intended to assist users with information and queries.
  • Applications: Bard can be used for information retrieval, question-answering, and general conversation. As of its initial release in March 2023, it was available for use in the United States and the United Kingdom, with plans to expand to more countries and languages.

These models represent significant advancements in natural language processing and generative AI, showcasing the ability of AI systems to understand and generate human-like text, images, and responses in a wide range of applications.

What are the use cases for generative AI Chatbots?

Generative AI chatbots offer a wide range of use cases across various industries and domains due to their ability to engage in natural language conversations and generate text-based responses. Here are some common use cases for generative AI chatbots:

  1. Customer Support: Generative chatbots can provide 24/7 customer support by answering common queries, troubleshooting issues, and offering assistance with products or services. They can handle routine inquiries, freeing up human agents to focus on more complex tasks.
  2. Virtual Assistants: Generative chatbots can serve as virtual assistants, helping users with tasks like scheduling appointments, setting reminders, sending messages, and providing information.
  3. Content Generation: Chatbots can assist in content creation by generating articles, reports, product descriptions, and marketing copy. They can produce content in various styles and tones to align with a brand’s voice.
  4. E-commerce: Chatbots can help users find products, provide product recommendations, answer questions about pricing and availability, and assist with the checkout process.
  5. Finance and Banking: Chatbots can help users check account balances, review transactions, transfer funds, and provide information about financial products and services. They can also assist with fraud detection and security.
  6. Market Research: Chatbots can collect user feedback, conduct surveys, and gather insights from customer interactions for market research purposes.

These are just a few examples, and the applications of generative AI chatbots continue to expand as the technology evolves. Organizations across various sectors are increasingly leveraging these chatbots to improve customer experiences, automate tasks, and enhance efficiency.

What are the benefits of generative AI Chatbots?

Generative AI chatbots present a wide spectrum of advantages for enterprises and organisations spanning diverse sectors. Below are some of the primary benefits:

  1. Round-the-Clock Accessibility: Generative chatbots operate 24/7, ensuring continuous customer support and assistance. This proves particularly valuable for global businesses catering to customers in various time zones.
  2. Cost Efficiency: Chatbots adeptly manage a high volume of routine inquiries and tasks, curbing the necessity for human customer support agents. This translates into substantial cost savings for businesses.
  3. Uniformity: Chatbots consistently deliver information and responses with unwavering consistency, preserving a standardised customer experience devoid of variations in tone or quality.
  4. Swift Responsiveness: They provide prompt answers to customer queries, elevating user satisfaction levels and minimising wait times.
  5. Cost-Effective Support in Specialized Fields: In sectors like healthcare and education, chatbots emerge as a cost-effective and accessible means of support, facilitating user access to information and resources with ease.
  6. Robust Performance During Peaks: During peak seasons or periods of heightened activity, chatbots excel in managing increased demand without succumbing to fatigue or diminished efficiency.

How to Build a Generative AI chatbot in 6 Easy Steps?

Creating a generative AI chatbot may seem intricate, but here’s a simplified guide detailing how to develop one using in six straightforward steps:

Registration and Login

Visit the “” website and register for an account if you don’t have one already. You’ll typically need to provide your email address and create a password. After registration, log in to your account.

Create a New Chatbot

Once logged in, there should be an option to create a new chatbot. Click on it to start the chatbot creation process.

Define Objectives and Use Cases

Specify the purpose and objectives of your chatbot. Determine the tasks it will perform and the use cases it will cover, such as customer support, content generation, or information retrieval.

Data Collection and Training

You may need to provide or upload relevant data for training your chatbot. This could include conversational data, FAQs, or domain-specific knowledge. The platform may have tools for data preprocessing and training.

Customization and Configuration

Configure your chatbot’s settings, including its name, appearance (if applicable), and integration options. You might also define conversation flows, responses, and rules.

Integration and Deployment:

Choose the communication channels where your chatbot will be deployed. This could include a website, mobile app, or messaging platforms like WhatsApp, Facebook Messenger or Slack.
Deploy your chatbot to a server or cloud platform to ensure it’s accessible to users 24/7.

Which platform is Best to Build Generative AI Chatbot? is considered to be the best platform to help build a Generative AI Chatbot. It has several features which helps in enhancement of the customer support and in easing its user’s tasks. has the following features:

  1. Lead generation: Lead Generation with the help of chatbots involves using automated conversational agents to collect information from potential customers, qualify leads, and initiate the sales process. It facilitates lead generation by engaging in real-time conversations and understanding the user’s needs, preferences, and intent, gathering valuable lead information, delivering personalised content or product recommendations to users, providing 24/7 services, providing instant responses to inquiries and reducing human workload.
  2. Shopify Chatbots: It helps in providing usage of chatbots on Shopify which can significantly benefit e-commerce businesses, including features such as offering 24/7 support, answering common queries, providing product information, and resolving issues efficiently. Furthermore, it helps in recommendation of products based on user preferences and purchase history, enhancing the shopping experience, helps in cart recovery, order tracking, offering product guides, FAQs, and tutorials to assist customers and gathering the user’s feedback thereby helping businesses improve their offerings and services.
  3. Website Chatbot: helps its users in creating a website chatbot involving the integration of a conversational agent into a website to enhance user engagement and support. It further provides smart 24/7 customer support, multilingual support and omni-channel support, thereby streamlining the process of optimization and scaling of ad campaigns, making your own metrics using external data and exploration of strategies.
  4. Whatsapp Automation: helps in providing whatsapp automation to streamline communication and automate processes on the WhatsApp messaging platform by including in its platform effective customer interaction, order tracking, personalised marketing, automated notifications, enhancing the sales, reduced response time thereby improving customer satisfaction, gathering valuable user data and feedback, helping businesses improve their offerings and providing no-code chatbot builder.

Moreover, talking about the pricing of, it provides easy accessibility of its platform to their customers by keeping their pricing scheme minimum so that it can be made affordable for all types of users beginning from starters to medium and to large enterprises. The pricing scheme can be seen as given below with a large number of features for different users including impactful and powerful campaigns, 24/7 live chats with the customers, paying after use, provision of various personalization tools, seamless integrations of Shopify and WooCommerce, multi-user access, streamlining marketing automation, providing expert success manages further enhancing customer satisfaction and lastly, helping users with built chatbots without coding using the ready-to-use templates.

For more information regarding the plans and the comparisons among them refer to the link mentioned below:

What are the limitations of generative AI Chatbots?

Generative AI chatbots have made significant advancements, but they still have several limitations. Some of the key limitations include:

  1. Lack of Understanding Context: Generative chatbots can struggle to maintain context during extended conversations. They may not fully understand the nuances of a conversation and can provide irrelevant or off-topic responses.
  2. Limited Knowledge Base: The knowledge of generative chatbots is typically based on the data they were trained on. They may not have access to the latest information or be able to answer highly specialized or domain-specific questions accurately.
  3. Prone to Bias: Chatbots can inherit biases present in their training data. This can lead to biased or politically incorrect responses, which can be harmful and offensive.
  4. Inability to Think Creatively: Generative chatbots operate based on patterns in the data they were trained on. They lack true creativity and cannot generate entirely novel or innovative ideas.
  5. Difficulty with Ambiguity: Chatbots may struggle with ambiguous queries or statements. They often require precise and well-structured inputs to provide accurate responses.
  6. Vulnerability to Adversarial Inputs: Chatbots can be fooled by malicious users who input misleading or adversarial information to generate inappropriate or harmful responses.

While generative AI chatbots offer valuable capabilities, it’s essential to be aware of these limitations when considering their deployment. Organisations should carefully plan and evaluate the use of chatbots to ensure they align with their specific goals and ethical standards.

What are the Best practices for using generative AI Chatbots?

Effectively utilising generative AI chatbots entails adhering to established best practices to enhance the user experience and optimise the advantages they offer. Below are some recommended best practices for deploying generative AI chatbots:

1. Clearly Define Objectives: Initiate the process by precisely outlining the chatbot’s goals and intended use cases. Gain a deep understanding of the tasks it will execute and the issues it will resolve.

2. Understand Your User Base: Acquire a comprehensive understanding of your target audience and their preferences. Customize the chatbot’s language, tone, and responses to align with user expectations.

3. Train on High-Quality Data: Ensure that the chatbot’s training data is of superior quality and relevance. The accuracy and effectiveness of the chatbot are heavily reliant on the calibre of the data it learns from.

4. Offer Clear User Guidance: Facilitate user interactions by providing transparent instructions on how to engage with the chatbot effectively. Clearly elucidate the chatbot’s capabilities and advise users on how to phrase their queries.

5. Maintain Conversation Continuity: Implement mechanisms to sustain the flow of conversation and uphold context during interactions. The chatbot should be adept at recalling previous exchanges and responses to foster more meaningful conversations.

6. Gracefully Handle Errors: Strategically plan for and gracefully manage instances of errors and misunderstandings. When the chatbot encounters an unclear query, it should respond with helpful suggestions or seek clarification from the user.

By diligently adhering to these best practices, organisations can create and sustain generative AI chatbots that not only deliver value to users but also cultivate a positive and ethically sound user experience.

What is the future of generative AI Chatbots

Artificial Intelligence (AI) is undoubtedly a part of the future, and Generative AI stands out as one of the transformative applications of AI poised for substantial growth. The outlook for the future of ChatGPT and others provides insights into Generative AI’s potential to influence the future significantly. Over the past three years, investments in Generative AI solutions have exceeded $1.7 billion.

Generative AI’s use cases in software coding and AI-based drug discovery have received substantial funding. However, Generative AI techniques find applications across various industries.

Generative AI offers flexibility in exploring diverse designs to discover optimal matches. Additionally, it can expedite and enhance design processes across multiple fields, sometimes uncovering novel objects or designs unnoticed by humans.

Estimates regarding Generative AI and ChatGPT’s future also point to their potential impact on marketing and media. Large organisations are anticipated to use Generative AI to artificially generate approximately 30% of outbound marketing messages by 2025.

Some potential directions for the future of generative AI chatbots are enhanced Natural Language Understanding, Seamless Integration, Industry-specific Solutions, Advanced Conversational AI, Human-Agent Collaboration, Ethical and Responsible AI and Quantum Computing and AI. Overall, the future of generative AI chatbots is likely to be marked by increased sophistication, versatility, and ethical considerations. These chatbots are poised to play a vital role in various industries, revolutionising customer service, automation, and human-computer interactions.


In conclusion, generative AI represents a dynamic frontier in artificial intelligence, enabling the creation of content and solutions that were once the exclusive domain of human creativity. From text and image generation to enhancing user experiences and powering chatbots, generative AI is reshaping industries and expanding the possibilities of what machines can accomplish. As it continues to evolve, guided by ethical considerations and technological advancements, generative AI holds the promise of unlocking new levels of innovation, personalization, and automation across various domains, ultimately enriching our digital interactions and experiences.

Frequently Asked Questions

The Eliza chatbot created by Joseph Weizenbaum in the 1960s was one of the earliest examples of generative AI.

Yes, AI chatbots can be generative AI, depending on their design and capabilities. Generative AI chatbots have the ability to generate human-like text, responses, or content, often using deep learning models like GPT (Generative Pre-trained Transformer) to create human-like text in natural language conversations. However, not all AI chatbots are generative; some are rule-based and do not generate new content but follow predefined rules and responses.

Generative AI, a branch of artificial intelligence (AI), specialises in developing systems that can produce fresh data, including text, images, and other content, which frequently closely resembles human-created data. This field frequently harnesses deep learning techniques and employs models such as Generative Adversarial Networks (GANs) or Generative Pre-trained Transformers (GPT) to attain this capability.

Generative AI is used for various applications, including text generation for content creation, image generation and manipulation, creative tasks like art and music composition, data augmentation in machine learning, Natural language processing tasks, content recommendation systems, chatbots and virtual assistants and enhancing user experiences in various domains.

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