When someone lands on your website, their experience in the first few seconds often determines whether they stay, enquire, buy, or bounce.
One of the biggest factors in that decision is how quickly and easily they can get help.
Today, you have three main options:
Chatbots
Live chat
AI assistants
Each one has strengths, weaknesses, and ideal use cases. Below is an easy, practical breakdown to help you choose the best fit for your business.
Chatbots
What are they?
Traditional rule based chatbots respond using preset buttons, menus, or keyword triggers. They don’t think. They simply follow scripts.
Best for
- Basic FAQs
- Simple support questions
- Low traffic websites
- Businesses that just need to reduce repetitive enquiries
Pros
- Very cheap
- Reliable and predictable
- Always online
- Easy to set up
- Perfect for simple websites
Cons
- Cannot handle complex questions
- Conversations can feel robotic
- Could frustrate users
- Often leads to dead ends
- No personalisation
Ideal for
Small businesses with predictable questions like:
- Opening hours
- Location details
- Basic pricing
- Service or stock availability
- Booking links
If your website traffic is low or your FAQs are simple, a basic chatbot is enough.
Live Chat
What it is
Real humans answering questions through a chat window in real time.
Best for
- High value or ticket sales
- Complex conversations
- Support-heavy businesses
- Relationship driven industries
- Businesses with dedicated staff with specialised knowlege
Pros
- High trust
- Human level empathy
- Great for closing deals
- Easy to escalate conversations and personalise
- Ideal for businesses and industries that require nuance, emotion, and depth
Cons
- Requires people to be online
- Can be expensive and time consuming to train and resource
- Response times can be slow
- Unavailable outside business hours
Ideal for
Businesses that need deeper conversations like:
- Law firms
- IT support
- Coaching
- Real estate
- Agencies
- Professional services
If your sales or service model depends on human expertise, live chat adds a personal touch that automation can’t fully replace.
AI Assistants
What they are
AI assistants are the new evolution of chat. They understand natural language, give intelligent answers, handle complex enquiries, integrate with your systems, and act like a digital team member.
Best for
- B2B
- SaaS
- Professional services
- Multi-step sales processes
- Websites with high traffic
- Any business wanting 24 hour support
- Small businesses or solopreneurs who are time poor and want affordable resources to scale their business
Pros
- Always online
- Can qualify leads
- Can personalise answers
- Can book appointments
- Can integrate with CRMs and other tools
- Can reduce support workload
- Can hold natural, intelligent conversations
Easy and affordable to scale
Cons
- Requires setup
- Needs training to stay relevant
- More costly than traditional chatbots
Who it suits
Any business that wants:
- Better lead qualification
- Better user experience
- Full automation
- Consistent replies
- Smarter conversations
- Less admin work
AI assistants are ideal for businesses with high web-traffic, wanting to automate and scale quickly.
When using an AI chatbot, it is always important to have a Human in the Loop (HITL) to ensure that automation stays aligned with real customer needs and brand values.
AI can handle large volumes of enquiries efficiently, but humans bring context, empathy, and judgment that machines can’t fully replicate. Having a human review or intervene when needed allows you to:
Maintain quality and accuracy: Humans can validate complex or sensitive responses before they reach the customer.
Handle exceptions gracefully: If the AI doesn’t understand a query or encounters frustration, a human can step in to resolve it.
Preserve brand tone and empathy: People can add personal touches that build stronger relationships and trust.
Continuously improve the AI: Reviewing conversations helps train the model, identify gaps, and refine answers over time.
In short, HITL ensures that your AI chatbot delivers efficiency without losing the human connection, combining the best of automation and authenticity.
| Feature or Criteria | Chatbot | Live Chat | AI Assistant |
|---|---|---|---|
| Best for | Simple FAQs and low traffic sites | High ticket, complex, relationship driven industries | High traffic, scalable businesses requiring integrations and automation |
| Response type | Scripted | Human | Trained, intelligent, natural language |
| Cost | Lowest | Medium to high | Medium to high, depending on setup |
| Availability | 24 or 7 | Business hours only | 24 or 7 |
| Complex enquiry handling | Poor | Excellent | Excellent |
| Lead qualification | No | Yes, manually | Yes, automated |
| Integrations | Very limited | Depends on the platform | Deep integrations with CRMs, calendars, booking tools and other software |
| Personalisation | None to low | High | High and automated |
| Scalability | Limited | Limited by staff | Highly scalable |
| User experience | Basic | High, nuanced human warmth | High, consistent and intelligent |
| Ideal industries | Local SMBs, cafes, trades, beauty, simple products or services | Legal, IT, real estate, coaching, professional services | SaaS, tech, B2B, ecommerce, agencies, healthcare |
| Main drawbacks | Robotic, limited support | Costly, inconsistent, slow to respond, limited availability | Requires setup and training |
Legal and Compliance Considerations
Whether you choose a chatbot, live chat, or an AI assistant, it is important to consider privacy and consent obligations, especially in Australia.
1. Privacy and Data Collection
You must clearly disclose:
What data is collected
How it will be used
Where it will be stored
How long it will be kept
If your assistant captures personal or sensitive information, you must align with the Australian Privacy Principles (APPs).
2. Consent
Make sure your chat system includes:
A visible privacy notice
A short consent disclaimer before collecting personal info
An opt in for marketing messages (mandatory under Spam Act)
3. Handling Sensitive Information
If you operate in healthcare, legal, or financial services:
Avoid collecting unnecessary details
Clearly separate general advice from professional advice
Include disclaimers where relevant
4. AI Transparency
If a visitor is talking to an AI assistant, they should know, that they are chatting to an AI and not a real person. Transparency protects trust, credibility and reduces user frustrations and complaints.
So Which One Should You Use?
Here is the simple breakdown:
Choose a chatbot if:
- Your questions are simple
- You get low enquiry volume
- You want the cheapest option
Choose live chat if:
- Human conversations drive your sales
- You have staff online during business hours
- You handle specialised, complex or emotional enquiries
Choose an AI assistant if:
- You want 24 hour support
- You want to automate lead qualification
- You want to reduce admin
- You want natural, smart conversations
- You want a scalable solution
- You have a multi-step sales funnel
For most modern businesses, AI assistants provide the best balance of cost, intelligence, and user experience.
Final Thoughts
Your website is your digital shopfront.
The way you communicate with visitors matters.
If you want:
- More leads
- Better conversions
- Faster replies
- Less admin
- A smoother customer journey;
Then adding a chat function to your website is one of the quickest ways to improve your marketing and sales process.
If you’d like help setting up a chatbot or automated assitance on your website, get in touch with Grendesign or book a quick discovery call.