AI-driven chatbots have been on the rise for quite some time, but the new powerhouses of AI (ChatGPT, Gemini and Llama) have revolutionised the landscape. Companies are now starting to rethink their customer engagement strategies but are unsure whether to stick with traditional chatbot approaches or switch to the new AI powerhouses.
To help you decide what approach is best for your business, we teamed up with Codiance, and their team have explored the pros and cons of both technologies.
Traditional Chatbots:
Pros:
- Customisation
Many traditional chatbots and providers of traditional chatbots build their own AI technology stack, giving them full control over the software and infrastructure. This allows for greater customisation, giving you the opportunity to easily fine-tune the chatbots’ response and tailor it to your business’s needs.
- Data Ownership and Security
For industries where data privacy and compliance are important, these chatbots give you more control over your data as they are hosted within your own environment.
- Property Innovation
Developing your own chatbot can foster innovation within your business. This process allows you to create a unique AI model that differentiates you from competitors.
Cons:
- High initial costs
Hiring AI experts, developing the model and maintaining the infrastructure can come at quite a cost. For many businesses, especially SMEs, this cost is prohibitive. Even if using a 3rd party chatbot provider, the costs may be higher due to their investment requirements.
- Maintenance and Upgrades
Maintaining your own chatbot requires higher upkeep cost and resource, so you will need dedicated teams to ensure the system remains up to date and capable of handling increasing user demand and new information.
- Scalability Challenges
Scaling your own chatbot solution can be complex and expensive. As your business grows, so does the need for more computing power and specialised staff, both of which increase operational costs.
New AI Powerhouses:
Pros:
- Cost Efficiency
Leveraging the AI infrastructure means businesses avoid the high costs that come with developing and maintaining their own AI Models.
OpenAI, Google and Meta have invested significantly in training these models, allowing companies to benefit from advanced technology without massive R&D expenditure.
- Advanced Capabilities
These 3rd party models continuously evolve, thanks to ongoing updates and research. This means businesses always have access to innovative AI, without needing to worry about falling behind in innovation.
- Scalability
ChatGPT can scale according to your business needs, whether you are a startup or a large enterprise handling millions of customer interactions. Its robust infrastructure ensures high availability and performance across varying workloads.
Cons:
- Data Privacy Concerns
One of the biggest concerns that comes with using third-party platforms is data security. Because your data is processed externally, it raises potential risks around confidentiality and privacy.
While OpenAI et al has strong security measures, businesses must ensure compliance with local regulations and safeguard sensitive data.
- Limited Control
Unlike building your own chatbot, where you have full control over the technology, you rely on the providers for updates and new features. This limits customisation options for niche or specialised use cases. There is also nothing to stop features or access being removed.
How To Make The Right Decision
The decision to use traditional chatbots or third-party AI technology depends on your business’s needs, budget, and long-term goals. If you are looking for a cost-effective, scalable solution that can deliver quick results, leveraging a platform like ChatGPT might be the best choice.
However, if you want full control over your data, custom-built features, and have the resources to maintain a proprietary system, a traditional chatbot might offer the flexibility and security you need.
