The 3 types of chatbot and which one you need
| Type | What it does | When to use it |
|---|---|---|
| Marketing / FAQ | Replies with answers you wrote in advance | Small site, stable FAQs, low budget |
| Support (RAG) | Pulls info from your KB and answers with context | Support with a solid KB, >500 repetitive tickets/month |
| Agent | Decides and executes actions (not just replies) | Complex processes, system integration |
Before you choose, rule out the obvious shortcut: a custom ChatGPT GPT works for none of the three if the destination is your own site, because it can't be embedded outside ChatGPT. How far it does go and where it breaks is laid out in building an agent with ChatGPT.
RAG architecture step by step
- Structure your KB. Short blocks (200-400 words), self-contained, with metadata.
- Generate embeddings. Turn each block into a vector with a model (OpenAI ada or equivalent).
- Store in a vector database. Pinecone, Weaviate, pgvector depending on scale and budget.
- Configure retrieval. For every query: pull the top-k most similar blocks, re-rank, filter by metadata if relevant.
- Pass context to the LLM. The LLM gets the retrieved context + the user prompt + the system prompt.
- Return the answer with a source citation (optional but recommended).
When the chatbot should hand off to a human (criteria)
- Low model confidence (answer probability below threshold).
- Cases flagged as sensitive (complaints, escalations, discount requests).
- Explicit user request ("I want to talk to a person").
- Number of turns without resolution — after 5-6 messages with no progress, escalate.
- Frustration detection — keywords like "this isn't working", "I'm fed up".
Measuring CSAT and deflection without lying to yourself
Same thing as in support: inflated deflection is the trap. Measure:
- Tickets resolved without escalation with confirmed resolution.
- Post-interaction CSAT (>4/5 is healthy).
- Clean escalation rate (every escalation must carry context).
- CSAT before vs. after the chatbot.
Recommended stacks (self-serve, mid, enterprise)
| Size | Stack | Monthly cost |
|---|---|---|
| Self-serve | Implementa Support AI, Intercom Fin, Chatbase | $79-300/mo |
| Mid-market | Zendesk + custom RAG + integration | $1,500-5,000/mo |
| Enterprise | Proprietary platform or Salesforce + custom agent | $5,000-25,000/mo |