At my company, Jotform, we’ve been diving deep into the world of AI-powered chatbots and uncovered a variety of surprising ways they can enhance how we interact with customers. While we originally thought their main purpose would be to handle customer inquiries, our findings have shown that users are engaging with them in completely different—and often unexpected—ways.

Customer Service

It’s true that customer support is still one of the most obvious applications for AI chatbots, but it’s worth highlighting just how much they’ve evolved. In today’s fast-paced digital environment, customers expect immediate replies around the clock. The old-style chatbots may have been available 24/7, but they were often unhelpful. How many times have you typed out a question only to be met with robotic responses that didn’t actually solve your problem?

Modern AI chatbots are far more advanced. They can carry on multi-step conversations, answer nuanced questions, manage follow-ups, and even know when to hand off an issue to a human agent. Rather than relying on pre-set scripts, they tailor their responses based on real user input.

For any business, having a team of intelligent, always-on virtual assistants offers immense value. Take Photobucket, a media hosting platform, as an example: After deploying AI-based support bots, they saw a 3% rise in customer satisfaction and a 17% improvement in first-contact resolution rates. This translates to fewer unhappy users and less pressure on live support teams.

Lead Generation

AI chatbots allow companies to engage with visitors proactively rather than waiting for them to reach out first. In fact, many chatbots now gather key information right from the start—even before the user initiates a conversation.

We found this particularly evident with chatbots embedded on websites. Instead of sitting idle, some bots open the conversation with a prompt like, “Can I have your email in case we lose connection?” It sounds friendly, but it's also a smart move. During these interactions, chatbots can collect valuable data such as browsing history, location, and personal preferences.

Many business owners are catching on to this clever use of chatbots. A post on the EntrepreneurRideAlong subreddit noted that their lead generation had increased significantly since using chatbots compared to static forms.

“I think people find chatting more personal and instant,” the poster explained. “They’re more likely to respond when it feels like a conversation, versus filling out a form and waiting.”

Our own research supports this idea. Even better, chatbots can pass this collected data directly to marketing departments, giving them fresh insights into customer behavior and preferences.

New Ways To Search

There’s a lot of talk about AI changing the way we search online, but what about how it can help users locate information within a single website? A friend recently told me how difficult it was to find pricing details on wedding venue sites. Sometimes the info wasn’t there at all; other times, it was buried under layers of menus and subpages.

Rather than making users dig through endless links or guess where the answer might be, AI chatbots can instantly locate the exact information they need. For instance, a visitor might ask, “What’s your return policy?” or “Do you offer bulk pricing options?” Instead of being redirected to a general FAQ page, they receive a clear, conversational reply tailored to their question.

Navigation

While related to on-site search, navigation is its own unique function. If search is about finding answers, then navigation is about guiding users to the right destination.

Think about how often site visitors land on a homepage without knowing where to go next. Financial services websites, for example, often have multiple sections—like bill payment, trading accounts, and balance checks—that can confuse new users. An AI chatbot can act as a digital concierge, asking something simple like “How can I assist you today?” and then directing the user to the correct section—whether it’s to make a payment, check transaction history, or apply for a new service.

AI-powered chatbots are clearly more than just tools for answering customer questions. Beyond their role in support, they serve as powerful tools for generating leads, streamlining searches, and improving website usability. As AI continues to advance, businesses that take advantage of these expanded features won’t just improve customer engagement—they’ll position themselves ahead of the competition.

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