Understanding the Key Differences Between Chatbots and Conversational AI

With more than 2.7 billion smartphone users across the world in 2020, it’s no surprise that the mobile app industry is expended with no signs of stopping. Nowadays, smartphones have become a useful and convenient instrument that offers multiple benefits such as communication through emails and social networking, web surfing, entertainment, GPS and various other productivity apps.

In fact, studies show that the average American checks their phone every 12 minutes. 10% of people check their phones every four minutes.

We use our phones every day at work, at home, on the street, in bed, while we are eating, in our cars. You might be reading this article from a mobile device right now.

What are people doing on their phones? Well, 90% of mobile time is spent on apps.

According to these facts, many companies considering mobile apps are facing a common challenge — which app development approach to choose? Should we build a native, mobile web, or hybrid app? More importantly, which is the most appropriate app type for you and your business?

Let’s find out what are native, mobile web, and hybrid apps, analyze the differences between them, as well as the advantages and disadvantages of each. After reading, you will be able to understand which approach will be the right one for your business idea.

Web Apps

A web app is a software program that uses web technologies like HTML5, CSS, JavaScript. It exists entirely within browsers such as Safari and Chrome and is essentially a mobile website. It is therefore not possible to download them from an app store.

Also, the web app is not connected with the device’s operating system and does not use its storage. Unlike an iOS or Android app, there is no software development kit (SDK) for a developer to work with. There are templates and frameworks for developing web apps like Angular, React, and Vue.js that you can use to get a quick start.

So, here are some pros of web application

• Developing a web app can be simple and quick. So, web apps are a cost-effective way to put your product in the hands of a lot of users.
• Web apps can be built for all platforms as long as they can run in an appropriate web browser.
• The user doesn’t have to manage updates manually. The newest version always loads when a user opens a web app.

And some cons:

• Searching for an app might be difficult because the user doesn’t find it in any app store.
• A browser is required to run a web app. It means that users have to take more steps to use a web app, whether that’s searching for the page or typing in a URL.
• Web apps can be slower and lack a lot of benefits. They only work online and they don’t have access to as many phone features like push notifications, contacts, etc.

However, as browsers and web apps become more advanced, PWAs (progressive web apps) offer a wider functionality like:

• Sending push messages
• Using some touch screen elements
• Using some of the device’s hardware

So, If your startup is on a budget and doesn’t require complex functionalities or access to operating system features, then building a web app can be the most suitable solution.

Native Apps

A native app is a software application that is built for specific platforms and is written in languages that the platform accepts. For example, Swift and Objective-C for native iOS apps, Java or Kotlin for native Android apps and C# for the most part for Windows Phone apps. Native apps are also built using the specific Integrated Development Environment (IDE) for the selected operating systems.

Advantages of the native application:

• Native apps offer the fastest, most reliable and most responsive experience to users.
• Good integration with the hardware of the device (e.g. camera, GPS, phone, touch screen)
• It comes with the push notification functionality.
• Great design and user experience possibilities. For example, the implementation of sophisticated UI/UX design and animation.
• These apps can be downloaded from app stores and installed on mobile devices, where they can be placed as a designated icon on the home screen.
• Native apps are also more suitable for working offline.

Disadvantages:

• Need more than one codebase. iOS apps will not run on Android and the opposite, so you will have to work with different codebases for every platform you choose to build in.
• Native apps are usually more expensive in developing, especially for companies that need apps on multiple OS platforms. For both platforms, it will require two separate developers or teams.
• A lot of time is spent on development. Also, it takes time to update the app for different platforms.
• Require constant updates to keep with the current OS versions.
• Expensive to keep your native app updated
• Both Apple App Store and Google Play get a 30% commission from every in-app payment.

To sum up, a bigger budget is required if you want to build your app for multiple platforms (i.e. iPhones and Android) and to keep your native app updated. Native apps are not the best option for simple applications.

By offering a great user experience, better performance and accessibility, native apps are able to offer users a more personalized product.

Hybrid apps

Hybrid apps combine the power of native and web apps to reap the benefits of both. Actually they are made, so they look and feel like native applications, but like web apps, are built with JavaScript, HTML, and CSS. Also, there is a shell that is downloadable and loads the code using a WebView.

Advantages of the hybrid apps:

• Hybrid apps don’t need a web browser like web apps.
• With a hybrid app, you only have one codebase to manage. So, instead of building two apps like with native apps, you’re building one app, and it works on both platforms.
• Hybrid app developers are often less expensive than native application developers. You will probably require half the number of developers two native apps would have required. Or, with the same number of developers, a hybrid app could be published in half the time.
• Hybrid is a great option for developers that create visually intense applications, for instance, games
• Hybrid apps let you retain the same ability to access device features as with native apps.
• Easy to work with, maintain and upgrade
• Because of their native infrastructure, hybrid apps can work offline.
• Hybrid apps are easier to scale to another platform. Once you’ve built for one platform, you can launch on another, like Windows Mobile.

The downside:

• Getting your hybrid app to run appropriately on each platform generally takes substantial work. Sometimes, the total cost might become comparable to that of fully native apps. It all depends on how close you want to get to the “native user experience” or how simple your app is.
• Hybrid apps can be slower than native apps.
• Need to customize to a large number of exciting browsers
• Inability to implement complex features (e.g. in-app analytics, charts, diagrams)
• These hybrid systems make bug fixing more difficult.
• Hybrid apps load in a WebView, so performance can be worse than native applications.

Say you have an idea for an app, and you don’t know if people will like it or not. If you understand that a web app doesn’t really allow you to test this app, the simple version of the hybrid app will be a good solution for you.

You give to people to download and use the app on their device, although you are short on resources. Usually, a startup project is decided to create a hybrid app that in the startup world, this is called an MVP, or minimum viable product.

Conclusion

There are many different directions in which you can take your app, all of which have their pros and cons. The choice between web, native, and hybrid development is dependent on a number of factors, including business needs, app requirements, developer skill, budget and timelines. What’s important is to spend enough time thinking and analyzing before you start building because the apps are expensive enough. So, you may only have one go at getting it right. Find out the information as much as you can about the different kinds of apps and the development stages.

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Digitalization fosters the development of all sectors of the economy, making them simpler and more responsive to people's needs. If previously customers and services interacted mostly in person, spending a significant amount of time on each side, now it is possible to shorten the distance to effective solutions. AI developments make it possible to solve typical problems quickly and effectively. In fact, only complicated and non-standard issues are left for a support department.

Many users and business owners are still a bit skeptical about AI developments. In this overview, we will cover the widespread and effectual AI instruments that can strengthen engagement shortly, provided that they are arranged properly. Let's take a deeper look at how two of the most popular AI instruments function. In addition, we will also cover why the apps fit nearly any commercial enterprise. It is definitely now already – the future belongs to them as well.

What is a Chatbot?

This is a specialized software app designated with the purpose of ascertaining the intent of a person's message and picking the most relevant answer in return. Thanks to the conversational interface, chatbot analyzes any input provided by a visitor and highlights the core phrases that mark the user's intent. If you have doubts about whether this is possible to make accurately, there is a simple point here. Statistics and analytics help to shortlist the most common requests and elaborate on the responses to the point. This is the basic original approach. 

The further tech development enabled the creation of a separate AI enabled chatbot system. It is trained on extensive volumes of data and implements machine learning (ML). The latter allows these apps to “brainstorm” an extended range of non-scripted, organic replies to the requests that visitors input. This advancement is coherent with other hardware and apps that a company utilizes.

What Is Conversational AI?

A conversational AI is actually a comprehensive development that includes chatbots too. This means that it covers text and voice altogether. A conversational bot is frequently treated as an upgraded version of a classical textbot.

In addition to ML, conversational AI has implemented natural language processing (NLP). It helps the tools to figure out the viewer's intent correctly and proceed with a deep interaction, respectively. The core advantage of integrating conversational AI is the possibility to emphasize and expand maximally the essence of the message conveyed. That is a point that classical chatbots fail to deliver under any terms. If a company devotes extra resources to enhancing its AI instruments, the latter operates maximally close to human behavior.

Overall, the classification of types of conversational AI fully illustrates the highlighted points:

• AI textbots – handle a textual conversation with the visitors;
• Voice assistants – more intelligent dialog that stands on a spoken language procession;
• Virtual assistants – all-inclusive support with resolving multiple assignments, with an emphasis on textual and voice inputs jointly.

Chatbots (CB) vs Conversational AI (CAI): Brief Comparison

While exploring the nature of the said technological upgrades, it is worth noting that there are far more differences between them that do not lie on the surface.

A classical chatbot and a conversational bot pursue the common aim of optimization and, therefore, guarantee a positive effect on dealing with the website viewers. However, an AI voice bot upgrades the overall communication with the visitors since it adds a voice in addition to the textual support. Therefore, the second one guarantees extra positive outcomes, unlike typical chatbot apps.

Why Choose Conversational AI Over Traditional Chatbots

On balance, a conversational AI-based bot obviously can guarantee extra positive outcomes compared to classical tools, including:

• Better engagement in the communication with the visitors – classical textbots will fail to show the answers outside the scope of the databases of replies; CAI will proceed and succeed with addressing all the inquiries; in other words – CB is rigid while CAI possesses more flexible algorithms.
• Contextual analysis – CB will fail to do this again limiting its effort to the intent only, CAI will cover both equally well. The latter tool delivers customized replies.
• Multitasking – typically, users input several issues to solve and want to know everything at once. Under such terms, CB will recognize one intent only, typically, the first one, but it fails to do so with the rest of the issues. On the other side, CAI will analyze and reply to all the intents that a user indicated in one's message, attributed to the essence of what has been communicated. 
• Scalability – CB is not integrated with the remainder of the tools that a company uses, therefore, they may operate a bit haphazardly. On the other side, CAI is more integrated into the entire IT architecture that a company has built. In addition, it is possible to assess CAI's performance results more precisely.

There is also one scalable and impressive outcome – it is estimated that chatbot conversation apps have facilitated getting the retail sector extra $12 billion in 2023.

Which Solution Suits Your Business Best

It is not likely possible to craft a one-fits-all conversational chatbot solution since, in this case, we survey a very flexible technology. Indeed, it can be modified, highlighting the goals and tastes that a business communicates. This tool can truly address effectively all the challenges that a service provider may face while interacting with its customers. 

Overall, there are several filters to apply when building an AI solution tailored to your actual needs:

• Commercial plans – typically, AI solutions are requested when it is necessary to (i) upgrade the current level of user happiness, or (ii) enter a new level of operation. AI developers address each case individually to make the tech solutions 100% workable as owners think this fits best. 
• Nature of dealings with the visitors and clients – pre-evaluation of the client database and preceding dealings are always made before integrating tech solutions. To this end, it is worth noting that for standard requests and straightforward dialogs with visitors, textbots may suffice. Variable and compound dialogs will demand conversational AI, of course. 
• Viewer's profile – a target audience should be assessed precisely in this course. Nuanced and contextual dialog is very important for better user satisfaction. 
• Budget – it is crucial to find a balance between the funds needed and the earnings AI tech solutions promise to bring.
• Measurable outputs – textbots are rough to measure the effect of their performance on a business. Conversational AI solutions succeed in turning the statistics into gains, which are scalable, of course.

Closing Line

Almost any instrument can be both helpful and irritating. The way the work is arranged always affects the AI's performance and results. If this is done well, AI chatbots and conversational AI can work wonders and make your visitors love you.

Merely brainstorm ideas; perhaps they may even inspire the next developments within the IT sector, ensuring the next upgrade of user engagement. We are ready to ease your life if you find that a bit complicated. Our vast expertise and impressive portfolio enable us to elaborate on and bring to life even the most extraordinary solutions that perfectly align with a business's nature and purpose. Contact us, and we will offer some truly fitting ideas for your business to help it grow further.

If you have an idea for implementing a digital solution, but its business model is not yet clear, you may need a lot of resources to find the right one. But how can you test the effectiveness of this idea in practice when each of the potential target audience’s representatives may perceive it differently? The answer is simple: you should consider minimum viable product or MVP development for startups. Below, we will explain its peculiarity and analyze the advantages of this approach.

What Is an MVP for a Startup?

An MVP for startups is a software solution with a basic set of functions and a simplified visual that clearly demonstrates its unique selling proposition (USP) and does not have any additional features (that is, if you remove something from its functionality, it will lose this USP).

The Importance of MVP Development for Startups

The main purpose of MVP development for startup is simple: since early-stage startups do not have clear, verified business models, it is important to make sure that they will be accepted by their target audiences. Otherwise, their owners risk losing a lot of financial and time resources on something that “does not work” for the end consumers. So, to avoid this, it is better to implement such projects gradually, optimizing and expanding them, taking into account feedback obtained from real users.

MVP Development Process

Here are the main stages of the MVP development startups process:

• Defining the problem or goal of the target audience that you are going to help them solve/achieve with your product;
• Conducting market demand analysis, which consists of a detailed study of the target audience, market trends, similar software solutions, etc.;
• Rapid prototyping of the future solution and defining its key features that form the USP;
• Agile development of an MVP;
• Collecting feedback from real users;
• Continuous product iteration after the MVP launch aimed at tailoring the product to the needs of its target audience.

Top 9 Benefits of Building an MVP for Startups

In this paragraph, we would like to introduce MVP benefits that are valuable for each startup owner.

Cost Efficiency

Creating a minimum valuable solution is, first of all, much cheaper than in the case of a full-fledged one. This means that the initial budget for your project will be moderate, and you will not have to sacrifice anything important – for example, the budget for marketing, the salaries of your full-time specialists, and so on.

Faster Time to Market

No matter how unique your idea is, there is always a risk that someone will follow your example before you. In turn, the implementation of the MVP will allow you to reduce the time-to-market and, thus, gain an additional competitive advantage.

Market Validation

A quick launch of the MVP will help you validate it in real market conditions as fast as possible. In the future, you will be able to optimize it based on real feedback from its users and then improve it with each iteration and make it more and more valuable to them.

Risk Mitigation

Getting a working solution up and running quickly will help you identify its hidden issues early on, all thanks to the fact that it will be accessible to users from all over the world. In fact, no other type of testing, no matter how many resources are involved, can provide the same thoroughness in identifying errors and inconsistencies.

Investor Attraction

By launching a “raw” but functioning product to market early, it will be available to potential investors, too. Agree that this approach to demonstrating your idea looks much more viable and capable of achieving your goals than presenting a business plan only.

Customer-Centric Development

Generally speaking, creating a minimum viable solution is one of the key startup success factors since its entire development cycle is tailored to “please” its target audience. Indeed, since user feedback has to be taken into account long before the solution is released (first, it is tested by the project team and then – by representatives of focus groups), it turns out to be truly focused on the needs of the end users.

Enhanced Learning

MVP in startups helps to conduct an end-to-end assessment of market needs and make decisions based on the data obtained. This way, you can use the obtained insights in the further evolution of your product, turning it into a full-fledged software solution step by step.

Flexibility and Scalability

MVP development for tech startup involves creating an initially scalable, flexible foundation that is easy to modify and to which you can quickly add new/remove unnecessary functionality without much risk (primarily, associated with the appearance of hard-to-fix bugs).

Building a User Base

Finally, when you launch a full-fledged solution, it will already have some audience interested in using it. Thus, you will be able to reduce your budget for early adopter engagement and, in particular, the time and money needed to research and create a portrait of a potential client.

Conclusion

Now, knowing all the advantages and goals of startup MVP development, you can understand whether this option is right for you. In particular, if you are inclined in its favor, you can contact us, a service provider with many years of experience creating MVP solutions for startups in different industries. We will accompany you throughout the entire lifecycle of your project – from the ideation stage to the release and support of its full-fledged version.