Back to blog

Chatbot vs. Live Chat: which is right for you?

Chat is quickly becoming many customers’ favorite way to communicate with brands. From getting their problems solved quickly to finding out more information about a company’s products or services, chat is fast, efficient, and doesn’t involve the long-wait times typically associated with phone calls or rounds of back-and-forth emails.
Brechtje van Houtum
Jun 15, 2022
5 minutes read
Updated Oct 07, 2024

When it comes to offering chat on your website, you have two options: live chat (which involves customers talking to a salesperson or customer service rep in real-time) or a chatbot (where customers can interact with software that offers answers based on a pre-written script or on a flow triggered by keywords or intent.)

Chatbots fuelled by artificial intelligence use Natural Language Processing (NLP) and machine learning to understand and analyze conversations with people and tailor their responses by drawing on pre-defined answers, an educational database, or previous conversations with customers. These bots are even able to handle transactions.

In this article, we explore the benefits of both live chat and chatbots and why you should consider both to meet your customers’ needs. Let’s jump in!

What is the difference between live chat & chatbots?

Live chat involves a live conversation between a company’s employee and a customer or lead. In comparison, chatbots refer to an automated conversation with a customer or prospect and software. Chatbots can answer a range of pre-defined questions, such as, “What are your opening hours?”, or “Do you deliver to Seattle?”. More sophisticated AI chatbots can help customers with tasks such as subscription renewals, changing an address, or ordering food.

The benefits of live chat

  • Meeting customers’ need for human interactions

With live chat, customers or prospects can engage in direct conversations with customer support employees or salespeople. One-to-one support has always been an essential part of delivering a great customer experience and 70% of consumers say they desire human interactions when it comes to these conversations.

Users site personalized interactions as key to their positive experience of a brand. When customers are feeling stressed and overwhelmed, a warm, helpful, and supportive conversation with an agent can go a long way to take the edge off their stress and help them feel like your company cares about their problem.

  • Get a deeper understanding of prospects and customers

While you can review chat transcripts to find out more about the concerns of your prospects and customers, live chat gives you the opportunity for a deep dive into a person’s experience. With live chat, agents can ask questions that explore customer issues in more depth, helping them to gain a better understanding of users.

  • Tackle complex problems

Live chat is also a great channel when it comes to combining fast and efficient response times with the ability to resolve complex customer problems. Live chat gives users the opportunity to discuss their complicated problems over with a knowledgeable customer service representative.

msc-platform-live-chat

Discover 4 tips to improve your live chat experience

The benefits of chatbots

  • Cost-efficient

Particularly in the case of larger companies or those looking to scale, investing in chat software is far more cost-effective than hiring several new employees to engage in online chats. AI-powered chatbots can reduce the costs of customer service by up to 30% — in contrast to the $1 trillion companies spend on customer calls every year.

  • Effective in nearly 70% of cases

While live conversations with agents offer an awesome opportunity to tackle more complex customer issues, chatbots continue to become more and more sophisticated with every passing year. Comm100 reports that chatbots can successfully handle an average of 68.9% of chats from start to finish.

  • Unbeatable response times

90% of customers rate an immediate response from customer services to a question as “important” or “very important.” Chatbots can deliver near-immediate responses to customer queries. In addition, chatbots can provide 24/7 responses, providing immediate support whenever customers need it.

scripted-chatbot-right

Read more: 5 tips to create the best chatbot

What to choose: live chat or chatbot?

Chatbots and live chats both provide unique benefits. From the immediate responses and 24/7 availability that you find with chatbots to that hard-to-beat human interactions live chat delivers, each addresses different customer pain points and fulfills different customer needs.

Depending on your business, but also on your needs and your customers' preferences, choose what suits you best. In e-commerce for example, live chat can attribute to - and increase conversions. A quick personal interaction can take away small doubts. In utilities, with many repeating questions and standardized actions, an advanced AI chatbot might be the best solution.

Always have your use case in mind, before choosing a chat solution.

Chatbots and live chats: a dynamic combination

The best of both worlds? By providing a hybrid solution, you can offer immediate, round-the-clock response times with the assistance of chatbots. In addition, you can also set up chatbots to pass more complex issues onto customer service representatives, where live agents can provide emotional support and in-depth guidance.

Moreover, by combining live chat with chatbots, you can ensure conversational continuity by using chatbots to collect and pass on data to live agents – reducing the need for customers to repeat themselves. You can also protect your customer satisfaction and retention rates by routing customers to live agents that can provide in-depth support based on their expertise.

Chatbots and live agents work in tandem to meet complex customer needs and provide well-rounded and timely support to your customers. Bring together live chat and chatbots with Conversational AI Cloud and Mobile Service Cloud.

Want to Know More About Live Chat & Chatbots?

Was this article interesting?
Share it!

Latest Articles

email-deliverability-in-india AI

Email Deliverability in India: How to Build a High-Performance Email Program That Lands in the Inbox

Email delivered isn't always email seen. For Indian brands, inbox placement depends on authentication, list hygiene, and consistent sending behavior over volume. CM.com India's Email Gateway API offers the setup to land in the right place, across campaigns and everyday user communication.

6 minutes read Jul 20, 2026
whatsapp-marketing-strategy AI

WhatsApp Marketing Strategy for Indian Businesses: From Broadcast to Conversational Commerce

Indian brands relying solely on WhatsApp broadcasts miss customer engagement opportunities. Consistent growth comes from an interactive messaging experience. A conversational AI-based WhatsApp Business platform like Halo brings Indian brands better engagement, cart recovery, and conversion.

6 minutes read Jul 07, 2026
ai-powered-email-personalisation AI

AI-Powered Email Personalization: How Indian Brands Can Boost Open Rates

Generic email campaigns falter as they overlook major factors, including customer intent, timing, and email context. Agentic AI-powered email personalization tools analyze customer behavior, buying history, and engagement patterns deeply. They offer user-focused content at the right time. CM.com India's agentic email marketing solution improves open rates, increases conversion rate, and builds stronger customer journeys.

6 minutes read Jun 24, 2026
instagram-ai-chatbots AI

What are Instagram AI Chatbots? Key Benefits for Business Growth & Customer Engagement Automation

Learn about Instagram agentic AI chatbots and how they enable Indian brands to convert DMs, comments, reel comments, and story replies into useful customer engagement weapons. Agentic AI-based chatbot automation solutions speed up brand response time, qualify leads, and uplift overall customer experience. They enable Indian brands to engage and convert target users across Instagram and major digital platforms.

6 minutes read Jun 08, 2026
conversational-ai-india-types-of-ai Conversational AI Cloud

Conversational AI India: Types of AI in Customer Experience and Use Cases

Learn how Conversational AI is transforming the customer experience in India, helping businesses deliver real-time, humanlike assistance through AI chatbots. Explore the types of Conversational AI practical use cases, benefits, and challenges. Gain insights on implementing AI-driven customer service to enhance engagement, efficiency, and satisfaction across industries.

6 minutes read Jun 03, 2026
CM.com ChatGPT blog logos AI

Unlocking the Potential of ChatGPT and Large Language Models: A Product Manager's Perspective

With the advent of ChatGPT, it feels like we’re venturing into a whole new world. Everyone can ask questions and give commands to what is perceived as an “omniscient” chatbot. Within a single week, it acquired 1 million active users. Big Tech got shaken up with Google introducing their LaMDA-based “Bard” and Bing Search incorporating GPT-4 with Bing Chat. There seems to be no limit to the enthusiasm. But what is ChatGPT? What does it mean for businesses? We discussed this with Arman van Lieshout, Product Manager at CM.com for our Conversational AI Solution.

10 minutes read Mar 01, 2023
eCommerce Add On Tech Stack blog image Chatbots

Let’s Talk about the Benefits of Integrating a Chatbot with your Current Tech Stack

At CM.com, we've noticed that more and more people are showing an interest in employing our chatbot as a virtual communication channel to help them streamline their eCommerce practices and improve the overall experience that they offer to their customers. However, we’ve also noticed that one or two of our clients are unsure about whether they should replace their current systems in order to do so.

7 minutes read Feb 21, 2023
whatsapp-business-blog_image-service-automation WhatsApp

How to Use WhatsApp Business for Service Automation

The process of refunding or replacing a product is an inherently sensitive situation that can quickly turn into a source of tension or frustration for customers and businesses alike. Let's face it, when we as consumers are looking for a refund or replacement of a product that we’re unsatisfied with, the idea of having to scroll through lengthy pages of information that may or may not be relevant to what we need to know doesn't exactly fill us with joy; nor does the idea of spending extended lengths of time on hold with customer service.

4 minutes read Jan 25, 2023
whatsapp-business-blog_image-tracking-order-updates WhatsApp

How to Use WhatsApp for Tracking and Order Updates

Even the most easy-going among us can get a bit nervous if we don't know what's going on with our order. We've all been there, combing through our emails from the past month searching for payment confirmation, or fretting about whether our product has accidentally been shipped three-quarters of the way around the world to an unknown location, never to be seen again.

4 minutes read Jan 25, 2023
Is this region a better fit for you?
Go
close icon