Best Chatbot Tools to Use in 2024

“Can a chatbot really make or break your customer’s experience?”
The answer is a resounding yes.

Chatbots today aren’t just about answering FAQs or routing customers to the right department. They’re becoming your 24/7 brand ambassadors—handling inquiries, solving problems, and even making sales. But here’s the thing: not all bot tools are built the same, and choosing the wrong one can leave your customers frustrated or, worse, uninterested.

If you’re a business leader, product owner, or entrepreneur trying to figure out which chatbot tool deserves your attention in 2024, you’re in the right place.

We’ll break down what makes a chatbot stand out, which tools are worth your time, and how to get the most value from them—whether you’re automating customer support, capturing leads, or building stronger relationships with your audience. Let’s dive in.

Before we jump into the tools, let’s talk about the rise of chatbot tools.

The Rise of Bot Tools in 2024

When beauty retailer Sephora launched its chatbot on Facebook Messenger in 2016, it started with simple tasks like booking in-store makeovers and recommending products. What seemed like an experiment quickly turned into a core part of their customer engagement strategy. By 2020, Sephora’s chatbot was handling thousands of inquiries daily, achieving a remarkable 98% customer satisfaction rate.

Fast forward to 2024, and chatbots are no longer optional—they’re essential tools for businesses aiming to connect with customers effectively. But what’s fueling this growth?

Here are a few key factors driving the rise of chatbot tools:

• Skyrocketing Customer Expectations:
  Customers want instant responses and personalized solutions. Chatbots meet these demands by providing round-the-clock assistance without delays.
• Cost Savings and Efficiency:
  Chatbots are expected to save businesses around $8 billion by the end of 2022
• Advanced AI Capabilities:
  Modern chatbots leverage natural language processing (NLP) and machine learning, making conversations feel more natural and context-aware.
• Expanding Market Value:
  The chatbot market is projected to hit $15.57 billion in 2024, with businesses across industries adopting them for everything from lead generation to customer support (source: Statista).

Already familiar with chatbots but curious about the broader scope of software bots? Dive into this blog for a deeper understanding.

The rise of chatbots is a direct response to the need for scalable, efficient solutions in a world where quick, reliable customer service can make or break a brand.

The Best AI Chatbots at a Glance

App Name	Best For	AI Model	Pricing
ChatGPT by OpenAI	Advanced conversational AI for customer support and creative tasks	GPT-4	Free & Paid (starting at $20/month)
Google Dialogflow	Enterprise-level integrations and NLP solutions	Proprietary NLP	Custom pricing based on usage
IBM Watson Assistant	AI-driven customer engagement and analytics	Watson AI	Starts at $140/month
Microsoft Azure Bot Service	Multi-channel chatbot development and scalability	Azure Cognitive Services	Pay-as-you-go model
Tidio Chatbot	SMBs needing easy-to-deploy solutions	Proprietary AI	Free & Paid (starting at $32.50/month)
LivePerson	Customer experience management and conversational commerce	Proprietary AI	Custom pricing
Drift	B2B lead generation and sales automation	Proprietary NLP	Custom pricing based on usage
HubSpot Chatbot	Marketing automation and customer support	Proprietary NLP	Free & Paid (starting at $50/month)
Zendesk Answer Bot	Support ticket automation and customer self-service	Proprietary AI	Starts at $19/month
Rasa	Open-source solutions for developers	Open Source AI	Free & Paid (starting at $25/month)

1. ChatGPT by OpenAI

Best for: Engaging, human-like conversations with a wide range of use cases, from customer service to creative writing.

What Makes it Stand Out:
ChatGPT’s conversational AI is built to sound like a natural human, and it keeps learning over time. Whether you’re using it to answer customer inquiries or assist with tasks like brainstorming, it’s incredibly versatile.

Example:
Imagine you’re running an online clothing store. Instead of having customers wait on hold for basic questions like store hours, return policies, or product availability, ChatGPT can handle it instantly. Customers get fast answers, and your team can focus on more complex issues.

Key Features:

• Answers questions in a conversational tone.
• Helps with product recommendations based on customer interests.
• Easy to integrate with your website or customer support platform.

2. Google Dialogflow

Best for: Complex, multi-turn conversations that require context, like in-depth customer support or virtual assistants.

What Makes it Stand Out:
Dialogflow is built by Google, which means it integrates seamlessly with many other Google products, from Google Cloud to Google Assistant. It’s especially powerful for businesses looking for a bot that can grow with them and scale as needed.

Example:
A healthcare provider uses Dialogflow to help patients book appointments. The bot not only schedules visits but also remembers previous interactions, making it feel like an ongoing conversation. The system automatically suggests the best time for appointments based on the patient’s medical history.

Key Features:

• Handles complex, multi-step conversations.
• Supports voice and text-based interactions across various platforms.
• Pre-built integrations with Google Cloud services and other popular platforms.

3. IBM Watson Assistant

Best for: Businesses looking for a robust, enterprise-grade chatbot with advanced analytics and natural language understanding.

What Makes it Stand Out:
IBM Watson Assistant is designed for companies that need high-level automation but with customization. It’s great for industries like banking, healthcare, and retail, where precision and personalization are key.

Example:
Imagine a bank using Watson Assistant to help customers with account queries. The chatbot can help users check balances, make transfers, or provide info on financial products. It can also escalate complex issues to human agents, ensuring customers get the best service.

Key Features:

• Tailored to enterprise needs with AI-driven insights.
• Easy integration with CRM tools and live chat.
• Handles not only text but voice interactions as well.

4. Microsoft Azure Bot Service

Best for: Businesses seeking a highly customizable solution with easy integration into Microsoft-based environments.

What Makes it Stand Out:
Microsoft’s Azure Bot Service gives businesses the flexibility to create bots that are tailor-made for their needs. It offers powerful AI capabilities for building more sophisticated bots that handle everything from simple tasks to complex processes.

Example:
A logistics company uses Azure Bot Service to manage customer inquiries about delivery times and shipping status. The bot can access real-time data from the company’s database and give accurate responses to customers, even if they ask very specific questions about their shipment.

Key Features:

• Customizable and scalable for any business size.
• Seamless integration with other Microsoft products like Teams and Dynamics 365.
• Includes AI tools for natural language processing and machine learning.

5. Tidio Chatbot

Best for: Small to medium-sized businesses looking for a simple, cost-effective way to enhance customer interactions.

What Makes it Stand Out:
Tidio is a user-friendly chatbot that combines live chat with AI to offer real-time support. It’s especially great for businesses with limited technical resources but who still want a chatbot that delivers professional results.

Example:
An e-commerce site uses Tidio to answer customer questions about shipping and product availability. The bot can also trigger special offers based on the customer’s browsing history, leading to more conversions and higher sales.

Key Features:

• Easy-to-set-up live chat and AI-driven responses.
• Pre-built templates for various industries, like e-commerce and customer support.
• Automated marketing messages to increase engagement.

6. LivePerson

Best for: Businesses that want to blend AI with human interaction, especially for sales and customer support.

What Makes it Stand Out:
LivePerson’s AI is designed to boost engagement and drive revenue through conversations. It’s not just about answering questions—it helps guide customers to make decisions and drive sales.

Example:
A telecom company uses LivePerson to interact with customers visiting their website. When a customer asks about a plan, the bot can provide recommendations, help with comparisons, and even directly transfer them to a human agent if needed.

Key Features:

• Conversational AI that assists in sales and support.
• Real-time analytics to track how the bot is performing.
• Seamless transition between AI and human agents.

7. Drift

Best for: Businesses focused on lead generation, specifically in B2B sectors.

What Makes it Stand Out:
Drift is known for automating the lead qualification process, which is crucial for B2B companies. It qualifies leads, sets up appointments, and helps sales teams focus on closing deals instead of spending time on unqualified leads.

Example:
A SaaS company uses Drift to engage website visitors who are checking out product features. The bot instantly qualifies the visitor by asking a few questions, and if they’re a good fit, it schedules a demo call for a salesperson.

Key Features:

• Automates lead qualification and appointment scheduling.
• Real-time visitor insights to help teams respond faster.
• Integrates with CRM and email marketing tools to close deals.

8. HubSpot Chatbot

Best for: Companies already using HubSpot’s CRM, providing an easy way to integrate chatbot features into the CRM environment.

What Makes it Stand Out:
HubSpot’s chatbot works perfectly for inbound marketing. It helps automate customer support, qualify leads, and guide potential customers through the sales funnel, all while syncing seamlessly with HubSpot CRM data.

Example:
A digital marketing agency uses HubSpot Chatbot to capture leads from their website. The bot engages with visitors, asks questions about their needs, and then passes the qualified leads to the sales team with all the information needed to close the deal.

Key Features:

• Customizable chatbot workflows tied to HubSpot CRM.
• Automates lead capture and follow-up actions.
• Tracks customer interactions for better personalization.

9. Zendesk Answer Bot

Best for: Companies using Zendesk for customer support, aiming to automate responses and reduce agent workloads.

What Makes it Stand Out:
Zendesk Answer Bot leverages machine learning to pull answers from your knowledge base and automatically respond to common customer queries, freeing up agents to handle more complex tasks.

Example:
A software company uses Zendesk Answer Bot to automatically reply to customers seeking technical support. The bot pulls from a detailed knowledge base and resolves up to 40% of customer issues without human intervention.

Key Features:

• Automatically answers support tickets based on existing knowledge.
• Multi-language support for global businesses.
• Provides analytics to optimize the knowledge base.

10. Rasa

Best for: Teams looking for full control over the chatbot development process, with an open-source framework.

What Makes it Stand Out:
Rasa is an open-source chatbot framework that allows businesses to build highly customized, intelligent bots. Its flexibility makes it perfect for businesses that want to have total control over how their bot works.

Example:
A fintech company uses Rasa to build a highly specialized chatbot that handles inquiries about loans, investments, and financial advice, making it a reliable tool for handling sensitive financial transactions.

Key Features:

• Open-source and highly customizable.
• Advanced NLP capabiclities for handling complex conversations.
• Community-driven with extensive support for integration.

Now that we’ve explored some of the top bot tools in the market, you might be wondering—what exactly makes these tools so powerful? Let’s break down the key features that set these chatbots apart, so you know what to look for when choosing one for your business.

Key Features of Leading Chatbot Tools

The top chatbot tools in 2024 stand out because of the innovative features they bring to businesses. Let’s explore the key capabilities that make them indispensable:

1. Natural Language Processing (NLP)

Leading chatbots like ChatGPT and IBM Watson Assistant use NLP to understand and process human language naturally. This allows them to provide accurate and context-aware responses, making interactions seamless and effective.

2. Contextual Memory

Chatbots like Google Dialogflow excel at retaining context from previous interactions, enabling fluid, multi-turn conversations. This ensures users don’t have to repeat themselves and creates a more human-like experience.

3. Multichannel Support

Tools like Microsoft Azure Bot Service allow deployment across websites, apps, social media platforms, and even voice assistants. This ensures consistent interactions, no matter where your customers engage.

4. Personalization Through AI

Advanced bots like LivePerson analyze user data to provide tailored responses and recommendations. This feature improves customer satisfaction by addressing individual preferences and behaviors.

5. Task Automation

Chatbots such as Drift and Tidio automate repetitive tasks like answering FAQs, qualifying leads, and scheduling appointments, freeing up human agents to focus on more complex tasks.

6. Integration with Business Tools

HubSpot Chatbot and Zendesk Answer Bot seamlessly integrate with CRMs, email marketing platforms, and helpdesk systems, ensuring all customer interactions are logged and actionable.

7. Multilingual Capabilities

Zendesk Answer Bot and IBM Watson Assistant offer support in multiple languages, making them ideal for businesses with a global audience. This feature eliminates language barriers and improves accessibility.

8. Scalability

Tools like Rasa and Dialogflow are designed to scale as your business grows. They can handle increasing volumes of user interactions without compromising performance.

9. Analytics and Insights

Advanced chatbots like IBM Watson Assistant provide analytics that help businesses optimize interactions. Insights into user behavior, common queries, and drop-off points guide continuous improvement.

10. Customizability

User-friendly platforms like Tidio and Drift allow businesses to design chatbot workflows without coding. This enables companies to adapt bots to their specific needs easily.

We’ve explored the best chatbot tools and their powerful features, but you might still be asking: What’s in it for my business? Businesses are turning to chatbots because they deliver real, measurable benefits that improve operations and customer experiences.

1. Save Time

Chatbots handle repetitive questions like “What’s your return policy?” so your team doesn’t have to. It’s like having an extra employee who works 24/7 without needing a break.

2. Be Available 24/7

Your customers don’t wait for business hours. Chatbots don’t either. They’re always ready to help, even at midnight.

3. Cut Costs

Why hire more people for basic tasks? A chatbot can manage thousands of conversations simultaneously, saving you money on staffing.

4. Make Customers Happier

Fast responses = happy customers. Chatbots provide instant answers, guide users, and solve problems quickly.

5. Generate Leads on Autopilot

Chatbots engage visitors on your website, ask the right questions, and send qualified leads to your sales team. No forms, no waiting.

6. Handle Growth Like a Pro

Got a sudden spike in traffic? No problem. Chatbots can scale instantly, so you’re always ready, no matter how busy it gets.

7. Learn What Your Customers Want

Every interaction is a goldmine of data. Chatbots help you understand customer needs and improve your products or services.

8. Sell Smarter

Chatbots don’t just answer questions—they recommend products, upsell, and close deals, helping you boost sales.

9. Reach Customers Anywhere

From your website to WhatsApp, chatbots work wherever your customers are, providing a seamless experience across platforms.

10. Keep Your Brand Consistent

Your chatbot always uses the same tone and messaging, ensuring every customer interaction feels on-brand.

Conclusion

The best chatbot tools are powerful, but to truly maximize their potential, you need a solution tailored to your business. That’s where custom chatbots developed by codewave come in.

We don’t just develop chatbots—we craft intelligent conversational solutions designed to align with your business goals, solve real problems, and deliver meaningful results. Whether you’re looking to improve customer support, drive sales, or create a unique customer experience, Chatbot is built to help you succeed.

What You’ll Get with Codewave Chatbot

• Dialog Design: We start by understanding your business KPIs and the challenges you’re facing. Then, we design a “Conversational UX” that delights users and works seamlessly for your business.
• Chatbot Development & Deployment: Built on OpenAI and open-source models, chatbot leverages powerful NLP capabilities to deliver personalized responses and recommendations tailored to your audience.
• Flexible Interface: Our admin-friendly interface allows you to easily update and modify the chatbot, keeping it in sync with evolving business needs.
• Analytics and Reporting: Gain deep insights into chatbot interactions with detailed analytics on user satisfaction and performance, helping you make data-driven improvements.