About 23% of businesses use chatbots for customer support, while 55% use generative AI in eCommerce.
But which is the better choice for your eCommerce app development? It all depends on your needs.
Do you need a cost-effective chatbot for quick responses?
Do you need AI that feels more like a real conversation?
Let’s break down Chatbots vs Generative AI to help you can make the best choice for your business.
Table of Contents
Understanding Chatbots and Generative AI
Chatbots and generative AI for eCommerce are reshaping how businesses engage with customers. While both involve artificial intelligence, their uses and capabilities differ. Here’s how?
Chatbots
Think of chatbot artificial intelligence as virtual customer service agents. They respond to frequently asked questions like:
- What’s my order status?
- What are your business hours?
Traditional chatbots are based on a pre-existing database of responses, making them great at answering simple questions. However, they are less effective for complex conversations.
Generative AI
Let’s think of Generative AI as a smart conversationalist that goes beyond scripted responses. Unlike chatbots, it doesn’t provide pre-written answers. It generates responses instantly, understanding context and giving human-like replies.
Generative AI for eCommerce adjusts to user inputs in real-time, whether it’s about:
- Creating original content
- Customizing interactions with customers
- Helping with creative tasks
It’s ideal for eCommerce businesses that want to provide highly personalized, dynamic, and engaging experiences.
Let's connect virtually or ask for an estimate of your project.
Comparison Between Chatbots vs Generative AI
Chatbots vs Generative AI seem similar but serve different purposes and operate in distinct ways. Let’s discuss their differences to help you decide which meets your demands.
1. Response Type
| Response Type | |
| Chatbots | Generative AI |
| Uses pre-set responses based on keywords | Generates real-time, context-aware replies |
Chatbots operate as per the set rules and scripts. They identify keywords in a query and match them with pre-stated responses.
So, if you ask, “I want to file a claim for an accident.” the chatbot artificial intelligence will fetch a ready-made response from its database.
Generative AI isn’t just about keywords. It understands the context and gives a human touch to its responses.
For example, if a user says, “I want to file a claim for an accident. Please suggest how to do it.” Instead of retrieving stored information, it creates new responses. This makes conversations feel more natural and engaging.
2. Complexity
| Complexity | |
| Chatbots | Generative AI |
| Handles simple, structured queries | Manages complex, dynamic interactions |
As stated above, Chatbots follow predefined rules. When customers raise questions outside their programmed responses, they often get stuck or give generic answers.~
For example, a chatbot might answer, “We don’t have that information.” As a result, they’re not suitable for complex tasks.
Generative AI is on another level when it comes to complexity. It understands context to provide answers or solutions.
For example, If a Generative AI assistant doesn’t have the information you’re looking for, it may simply respond, “I can help you find that data, even though I don’t have it myself. Do you want me to connect with experts?.” It implies that it can manage complex discussions.
3. Personalization
| Personalization | |
| Chatbots | Generative AI |
| Basic, rule-based | Adaptive, behavior-driven |
Chatbots provide personalization, but it’s somewhat limited. They work with set rules and simple data like greeting you by name or remembering your previous order.
Let’s say you’re searching for a chatbot development services and a chatbot says, “Hi Alex, I’m ubibot – great to meet you. I can help you with our development services”.
On the other hand, Generative AI is entirely different. Instead of just recognizing a returning customer, it can suggest products based on past interests, upsell relevant items and adjust its tone to match the user’s preferences, just like a skilled salesperson.
4. Context Awareness
| Context Awareness | |
| Chatbots | Generative AI |
| Limited memory | Maintains context |
Ever had a Chatbot artificial intelligence completely miss the point of your question?
This is because most chatbots only remember your last message, not the entire conversation. Let’s say you ask, “Does this jacket come in blue?” and then follow up with, “What about the red one?” a regular chatbot might just go blank because it doesn’t connect the dots.
Unlike chatbots, Generative AI tools record the entire interaction. They recognize that the jacket you inquired about is “the red one.” This implies more fluid and organic encounters, like speaking with a real person. There is no more annoying back-and-forth, just prompt, relevant responses.
5. Learning Capability
| Learning Capability | |
| Chatbots | Generative AI |
| Rule-based, no learning from past chats | Learns from data, improves over time |
Chatbots stick to their scripts and react according to keywords and set standards. It struggles when asked something out of their existing data. Their responses remain the same throughout the conversation.
Generative AI advances here as well. It answers your queries based on how you interact. The more you engage with it, the smarter it gets.
Also Read: Healthcare Chatbot Use Cases You Need to Know
6. Integration
| Integration | |
| Chatbots | Generative AI |
| Easy to add for basic tasks | Connects deeply for smarter interactions |
Adding a Chatbot to an eCommerce app customer support is simple. Since they’re built for specific tasks like:
- Answering FAQs
- Tracking Orders
They can easily get plugged into existing systems. They get the work done within a fixed framework.
Generative AI is more advanced as it doesn’t follow commands. It handles:
- Unstructured data
- Integrate with CRM systems
- Tailors responses
It takes more time to integrate. However, the outcome is a highly interactive and dynamic customer experience.
7. Cost & Maintenance
| Cost & Maintenance | |
| Chatbots | Generative AI |
| Costs $5K–$15K, low upkeep | Costs $30K–$100K, high maintenance |
Traditional Chatbots are the best choice if you’re looking for a budget-friendly option. They are rule-based, require little maintenance, and don’t need much upkeep unless your business offerings change.
On average, developing a basic chatbot costs between $5,000 to $15,000, with minimum maintenance expenses.
Generative AI is different as it requires more processing power, frequent adjustments and continuous updates to guarantee accuracy. It means developing a generative AI for eCommerce can range from $30,000 to $100,000 depending on complexity, plus ongoing cloud storage and retraining expenses.
8. User Engagement
| User Engagement | |
| Chatbots | Generative AI |
| Handles FAQs with fixed responses | Offers dynamic, human-like interactions |
Traditional Chatbots complete tasks quickly, effectively, and methodically. But there’s a catch. Since they rely on pre-existing responses, they’re great for answering FAQs but struggle with out-of-the-box questions.
Ever received a frustrated reaction from the chatbot like “I don’t understand.” That’s the limitation of rule-based bots.
You can call Generative AI a conversational AI tool that makes it seem more like human interaction. It leads to better customer engagement and satisfaction. However, it sometimes generates erratic responses. So, it’s crucial to monitor it regularly to keep things on track.
Let's connect virtually or ask for an estimate of your project.
Pros and Cons of Chatbots and Generative AI
Chatbots and Generative AI are changing the way businesses interact with customers. As most things have benefits and limitations, chatbots and generative AI are no exceptions.
Let’s break down some pros and cons of each.
Pros & Cons of Chatbots
Pros:
- Instant responses for better customer satisfaction.
- Cuts support costs while maintaining quality.
- Quick integration with minimal setup.
Cons:
- May misinterpret nuanced customer inquiries.
- Can feel impersonal, frustrating some users.
Pros & Cons of Generative AI
Pros:
- AI tailors product recommendations for a better shopping experience.
- Powers chatbots, content creation, and more.
- Improves recommendations over time.
Cons:
- Expensive for small businesses.
- It may misinterpret user intent.
Let's connect virtually or ask for an estimate of your project.
Which One is Better for your eCommerce App?
Still unsure whether to use Chatbots or Generative AI for your eCommerce app customer support? It all depends on your needs.
- Chatbot benefits task like tracking orders, answering FAQs and guiding users through simple processes. They follow a script but are not suitable for complex conversations.
- Generative AI for eCommerce understands context, responds like a human, and adapts to user behavior.
If you just need basic automation, a chatbot will do the job. However, generative AI is the way to go if you want deeper engagement and smarter conversations.
Consult PixelCrayons for Implementing Chatbots and Generative AI
The choice between Chatbots and Generative AI for your eCommerce app depends on your budget, business requirements, and customer engagement goals.
PixelCrayons, a leading AI consulting company, specializes in building AI-driven solutions tailored to eCommerce businesses. Whether you need:
- Chatbots for instant customer support and transactional queries
- Generative AI for personalized shopping experiences and conversational interactions
- Hybrid AI models combining chatbot efficiency with generative AI’s adaptability
Hire our AI developers for seamless integration, improved customer satisfaction and sales performance. Contact us to discover how PixelCrayons can help you implement the right AI solution for your eCommerce app.
