A chatbot is a computer program that uses artificial intelligence to engage in text or voice conversations with users, often to answer questions, provide assistance, or automate tasks. In the age of generative AI, good chatbots have become a necessary part of the user experience.
✅ Figure: Good example - A nice chatbot in action
Choosing the right chatbot service for your website can be a challenging task. With so many options available it's essential to find the one that best fits your needs and provides a good experience for your users. But what distinguishes a good chatbot from a great one? Here are some factors to consider.
Depending on your intended use, some factors will be more or less important to you.
Figure: A drag and drop interface on the Botpress platform
The first decision is to choose between using a 3rd party chatbot service (e.g. ChatBase or Botpress) vs developing your own from scratch using a large language model API (e.g. OpenAI API).
| Factor | Directly from an API (e.g. OpenAI) | 3rd Party |
| Development effort and cost | High | Low |
| Control | High | Moderate |
| Cost to Train | Low | Low |
| Knowledge Base Limits | Unlimited | Limited but sufficient |
| Cost per Message | Moderate | High |
Before delving deeper into the comparison it would help to first understand the steps involved in building chatbots using either technology.
After creating your account and starting a new project, you should:
Here is a high level description of creating a chatbot from scratch using the OpenAI API. For a more in-depth explanation, see the video below.
Watch an in-depth explanation:
As you can see, developing a chatbot from scratch using the OpenAI API requires significant development effort and expertise. 3rd party chatbots are easier to program and embed on your website. As a rough estimate assume it will take a developer 20 days to build a custom chatbot - or $20K up front (assuming the developer costs $1000/day. Assuming a $399/month subscription of Chatbase on the other hand, it would take the custom solution over 4 years just to break even.
However, custom built chatbots provide a lot more control in how you train the AI model, what content you match the user query with, and what system message you provide the GPT engine to respond to a user’s query. You don’t get this level of control with 3rd party chatbots. The backend of custom built solutions can also be leveraged to serve multiple chatbots supporting completely different use cases. For e.g. one chatbot could provide basic company info to visitor’s on the company website, while a second chatbot could help employees find info on the company Intranet.
Cost to train the chatbot on your knowledge base is very inexpensive in both options. For example, you can train a chatbot on ~3000 pages for less than $1 USD using the OpenAI Embeddings model.
If you go with a 3rd party service, you might be torn between 2 popular platforms: Botpress and Chatbase.
| GPT Integration | Customization | Pricing | |
| Botpress | ❌ Traditional style of workflow and steep learning curve | ✅ Wide range of integrations | ✅ Free to start |
| Chatbase | ✅ Does everything with prompt engineering | ✅ Easy customization | ❌ Limited free plan options |
While both platforms offer unique features, Chatbase stands out as the superior choice in most instances:
However, if your company already runs on Microsoft 365 and Office systems, then Microsoft Copilot is likely the best solution:
For businesses using Microsoft’s ecosystem, Copilot provides the most secure and scalable internal chatbot solution while reducing the need for custom development.