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The CDME perspective

Rule-Based Chatbots & Conversational AI Chatbots

Rohit Haldankar
By Rohit Haldankar July 15, 2026

Contrary to popular belief, every chatbot is not an AI chatbot. Chatbots can be broadly classified into 2 categories - Rule-based chatbots & Conversational AI chatbots.

Rule-based chatbots are simpletons of the chatbot world. They have very little intelligence as they function based on predefined rules and logic. They are deployed when user queries are specific and predictable and, hence, can be handled by a pre-defined script.

Conversational AI chatbots are the more intelligent lot in the chatbot world.

At the heart of such chatbots lies the intricate field of conversation design. These chatbots are powered by AI in the form of Machine Learning (ML) and Natural Language Processing (NLP).

Unlike Rule-based chatbots, Conversational AI chatbots have the capability to understand a wide range of customer queries and provide dynamic and contextually relevant responses.

In the near future, Conversational AI chatbots will increasingly use Gen AI capabilities to provide a more fascinating user experience that won’t just solve for customer service use-cases but also have applications in performance marketing and revenue generation.