AI chatbots for small business: a plain guide for Ontario owners.
This guide covers what a website chatbot does, what it shouldn't do, how the costs usually work, and what to ask before you sign up for one.
Plenty of people visit a small business website when nobody is there to answer them: in the evening, on the weekend, or while you're busy with a customer. Some of them have a quick question, and if they can't get an answer, they move on. An AI chatbot is one way to answer them. Here's what it does, where it falls short and how to choose one that fits.
What an AI chatbot actually does
An AI chatbot is a chat window on your website, and sometimes in your Facebook or Instagram messages, that replies in plain language. A good one is set up with your business's own information: your services, the area you serve, your hours, your policies and the questions customers ask most.
- Answers common questions at any hour, like what you offer, where you work and how to get started.
- Asks the questions you'd ask a new customer and sends them to you, so you have what you need to follow up.
- Offers times or a booking link when it's connected to your calendar or booking tool.
- Hands the conversation to you when a question goes beyond what it knows.
How it differs from older chat widgets
Older chatbots follow a fixed menu of buttons. If a visitor's question isn't on the menu, the conversation gets stuck. AI chatbots understand questions written in the visitor's own words, which makes them far more useful. The trade-off is that they can sound confident when they shouldn't, so a careful setup limits them to your information and spells out what they must not answer.
What it should not do
- Give legal, medical, tax or financial advice, or quote prices and rates you haven't approved.
- Promise timing or availability you haven't confirmed.
- Pretend to be a person. It should say it's an assistant and offer a way to reach someone on your team.
- Ask for more personal information than it needs to help.
How the costs usually work
Prices vary a lot between providers, so compare how each one charges, not just the monthly price.
| Cost | What it usually covers | What to ask |
|---|---|---|
| Setup | Learning your business, writing the chatbot's instructions, adding it to your site | Is it included, and who writes the answers? |
| Monthly fee | Hosting, the AI service and keeping it running | Is AI usage included, or billed per conversation? |
| Changes | Updating services, prices, hours or policies | Are updates included, and how quickly are they made? |
| Connections | Calendar, email, text messages or your customer list | Which tools does it connect to, and at what extra cost? |
Do-it-yourself chatbot tools are usually the cheapest, but you write and maintain everything yourself. A done-for-you service costs more but usually includes the setup and ongoing changes. The right choice mostly depends on how much time you have to look after it.
A note on privacy
Chat conversations often include names, phone numbers and addresses. Canadian privacy law expects businesses to tell people why their personal information is collected and to protect it. Add a short note to the chat window, make sure your privacy policy covers it, and ask the provider where conversations are stored and for how long.
Questions to ask before you choose
- What will it answer, and what will it pass to me? Ask to see the instructions it follows.
- Can I test it before it goes live? Try your ten most common questions and a few awkward ones.
- Where do the details go? Email, a text to your phone, or the software you already use.
- How do updates work? Your services and hours change, so the chatbot needs to keep up.
- Can I read the conversations? They're the best way to improve answers and learn what customers actually ask.
- What happens if I cancel? Check that you keep your leads and conversation history.
How to tell if it's working
After the first month, look at three things: how many conversations happened outside your business hours, how many turned into enquiries or bookings, and which questions it couldn't answer. Add answers for those and check again a month later.
Next step
See how a chatbot would work in your field: trades and contractors, dental clinics, law firms, mortgage brokers or accounting firms. If most of your enquiries come in by phone, read AI receptionist or answering service? When you're ready, get a free demo set up for your business.
Written by Nuvelo Labs, Kitchener-Waterloo. General information only, not legal advice.