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AI chatbots for business: what they can and cannot do

A chatbot is useful when it does a narrow job well. This guide covers what to expect, where they go wrong and how to decide if one is worth building.

Published 1 min read
On this page · 7 sections
  1. 01What is a business AI chatbot?
  2. 02What can it do well?
  3. 03Where does it go wrong?
  4. 04What should you plan for?
  5. 05How do you connect it to your systems?
  6. 06How should you measure it?
  7. 07Should you build one?

Key takeaways

  • A business chatbot works best on a specific job, such as answering questions from your own documents or helping staff find information.
  • It can give wrong answers with confidence, so plan checks, limits and a route to a person.
  • The quality of the answers depends on the quality and freshness of the content behind it.
  • Decide how you will measure it before you build it.

What is a business AI chatbot?

It is software that answers questions in natural language, usually using a large language model, and often drawing on your own content such as help pages, product data or internal documents. It can be customer-facing or used by your staff.

What can it do well?

  • answer common questions from documents you give it
  • help people find the right page, product or policy
  • draft replies for a person to review
  • summarise long information
  • work outside office hours

These are narrow, checkable jobs. Our guide on when a business needs AI development covers how to judge fit.

Where does it go wrong?

  • Wrong answers. Models can state incorrect things in a confident tone.
  • Out-of-date content. If your pages are old, the answers will be too.
  • Questions outside its scope. Without limits, it may try to answer anything.
  • Sensitive requests. Complaints, payments and personal data need careful handling.
  • Hidden cost. Ongoing usage, monitoring and content upkeep all take effort.

What should you plan for?

  1. Scope. Write down what it may answer and what it must refuse.
  2. Source content. Decide which documents it uses and who keeps them current.
  3. Handover. Provide a clear way to reach a person.
  4. Data protection. If it handles personal data, UK GDPR applies. Check the ICO's guidance on AI and data protection.
  5. Testing. Try real questions, including awkward ones, before launch.
  6. Review. Read a sample of conversations regularly.

How do you connect it to your systems?

A chatbot becomes more useful when it can look up an order or a booking, and that needs an integration with your other systems. See API integration: what it involves and what can go wrong. Every connection adds scope, permissions and risk, so start with read-only access.

How should you measure it?

Agree measures before launch: questions resolved without staff, handover rate, accuracy on a sample, and complaints. Avoid judging it on usage alone.

Should you build one?

Build when there is a repeated, well-defined task, good content behind it and someone to own it afterwards. Wait when the content is poor, the process is unclear or the risk of a wrong answer is high.

To discuss a specific use, see our AI development services or contact us.

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