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AI Chatbots, RCS, and the Future of Customer Engagement

MWC Barcelona 2025 is setting the stage for the future of telecom, and one of the hottest topics in messaging is the evolution of AI-powered customer experience (CX) bots. With a strong presence from GTC—featuring José García, Giovanni Benini, Guillaume Bourcy, Erik van Stokkom, Bahadir Yavuz, and Craig Allen—we are witnessing a shift from AI hype to real-world implementation. Businesses are no longer just asking if AI chatbots should be part of their customer engagement strategy but how to deploy them effectively.

AI Chatbot Featured Image

However, confusion still surrounds AI chatbots, often mistaken for basic scripted bots or IVR systems. To move the conversation forward, we need to clarify what true AI-powered CX bots are, what they can achieve, and how businesses should implement them.

Cutting Through the AI-chatbot Hype

AI in customer experience (CX) has been surrounded by hype, often leading to misconceptions. Many still equate AI chatbots with traditional scripted bots—such as IVR-based systems—that follow rigid flows and predefined responses. However, true AI-powered chatbots leverage natural language understanding, contextual memory, and real-time data access to provide meaningful, human-like interactions. To move beyond the confusion, it’s essential to distinguish between these two vastly different technologies.

Comparison: Scripted Bots vs. AI-Powered Chatbots

FeatureScripted Bots (IVR-Type)AI-Powered Chatbots (Conversational AI)
TechnologyPredefined scripts & rulesNatural language processing (NLP) + machine learning
FlexibilityFixed response pathsAdapts responses dynamically based on conversation
Context AwarenessNo memory of past interactionsRetains context across interactions
PersonalizationGeneric responsesTailored interactions based on user history & preferences
Data IntegrationLimited or no CRM accessReal-time access to CRM, customer data, and external APIs
Learning CapabilityNo learning, static responsesContinuously improves through machine learning
Customer ExperienceOften frustrating, rigidHuman-like, engaging, and problem-solving

By understanding these key differences, businesses can avoid mistaking simple automation for true AI and focus on building intelligent CX solutions that genuinely enhance customer interactions.

Defining the Next-Gen AI Chatbot: Agentic RAG and the Power of Integration

A truly intelligent AI chatbot relies on advanced technologies like Agentic RAG (Retrieval-Augmented Generation) to provide more accurate and contextually relevant responses. Traditional RAG pipelines retrieve information from a single knowledge source, but Agentic RAG enhances this process by incorporating AI agents that can reason, validate retrieved data, and access multiple sources, such as web search, CRM systems, and internal databases. This approach ensures chatbots deliver grounded, well-informed answers while reducing hallucinations.

Large Language Models (LLMs) like Claude, ChatGPT, and those developed by Anthropic power these chatbots, providing the natural language understanding and generation capabilities required for seamless customer interactions. However, their effectiveness depends on integration with business-specific data sources.

CRM integration is crucial for AI chatbots to access customer interaction history, enabling them to personalize responses, suggest relevant offers, and proactively address concerns. This aligns with insights from Codica, which highlights how AI chatbots boost lead conversion by tailoring responses based on customer data. Additionally, training the chatbot on a company’s entire product information database ensures it can provide detailed, accurate answers about services, pricing, and troubleshooting.

Next-best-action (NBA) engine

Finally, McKinsey emphasizes that to remain competitive, companies must build next-best-action engines that help resolve customer issues efficiently.

A next-best-action (NBA) engine is a data-driven system that suggests the most relevant action to take with a customer at a specific moment. It analyzes customer data, like past interactions and behaviors, and uses AI to predict what offer or action the customer is most likely to respond positively to. The goal is to personalize the customer experience and increase customer lifetime value. Instead of static marketing campaigns, NBA allows for real-time adjustments based on individual customer needs.

Chatbots using Agentic RAG, LLMs, and CRM integration align with this strategy, enhancing both customer support and sales.

Capabilities of a Properly Trained AI Chatbot

A well-designed AI chatbot, powered by Agentic RAG and LLMs, delivers personalized recommendations, proactive support, and seamless transactions. It streamlines checkout, reduces cart abandonment, and enhances conversational commerce through intelligent upselling. By analyzing interactions and detecting intent, it refines engagement strategies, making AI-driven chatbots essential for optimizing customer experience and driving revenue growth.

Gartner: Ai-enabled channels
  • Personalized Interactions: AI chatbots analyze customer data to offer tailored recommendations, increasing engagement and satisfaction.
  • Proactive Support: AI detects issues before they escalate, reaching out with solutions based on past interactions.
  • Frictionless Transactions: Integrated checkout assistance reduces cart abandonment and streamlines sales.
  • Conversational Commerce: AI chatbots drive upselling and cross-selling with real-time recommendations.
  • Enhanced Customer Insights: AI analyzes interactions to refine marketing strategies and detect intent.

Considering the above, a Gartner survey with around 200 customer service leaders conducted between July and August 2024 shows that 44% are investigating conversational AI for customer interactions, 11% are already testing this technology, and 5% have it fully implemented.

Multi-Channel Reach: Disseminating AI Chatbots Across Platforms

First of all, AI-powered chatbots thrive on an omnichannel strategy, integrating seamlessly with popular messaging platforms such as WhatsApp, Facebook Messenger, and web chat. These channels ensure businesses engage customers on their preferred platforms while maintaining a consistent and personalized experience across all touchpoints. AI chatbots unify interactions across channels, leveraging CRM data to provide contextually aware responses, whether on a website or within a mobile messaging app.

AI-powered chatbots & RCS messaging: the power duo of tomorrow

Rich Communication Services (RCS) is emerging as a powerful AI chatbot channel, offering a native messaging experience on Android and potential iOS adoption. Unlike traditional SMS, RCS enables businesses to deliver rich media, interactive buttons, and carousels—all within the default messaging app, eliminating the need for third-party installations.

RCS combines the reliability of SMS with modern features like verified sender identities, encryption, and multimedia support. This makes AI-powered chatbots more engaging and interactive, driving higher conversion rates and improved customer satisfaction. Businesses leveraging RCS can send dynamic messages, automate support, and facilitate seamless transactions directly within the messaging app.

Conclusion: Turning AI Potential into Business Reality

The distinction between scripted bots and AI-powered chatbots is crucial. Unlike rigid, rule-based systems, AI-driven chatbots leverage real-time data, CRM integrations, and advanced LLMs to deliver personalized, proactive, and intelligent interactions. Despite the hype, these solutions are more accessible than many realize—businesses can deploy them today to enhance engagement, drive sales, and streamline support.

At MWC Barcelona 2025, GTC’s experts will be available to discuss messaging, digital identity, and AI adoption. Book a meeting to explore how AI-powered messaging can transform your customer experience.

Any questions?

Global Telco Consult (GTC) is a trusted independent business messaging consultancy with deep domain knowledge in application-to-person (A2P) services. GTC provides tailor-made messaging strategies to enterprises, messaging service providers, operators and voice carriers. We have expertise in multiple messaging channels such as RCS, Viber, WhatsApp, Telegram and SMS for the wholesale and retail industry. Additionally, GTC offers Digital Identity and Fraud advisory services, aiding clients in navigating the complexities of digital identity verification and fraud prevention, while also providing Recruitment services, assisting businesses in acquiring top talent within the telecom and technology sectors.

GTC supports its customers from market strategy through service launch, running the operations and supporting sales and procurement. The company started in 2016 with a mission to guide operators and telcos to embrace new and exciting opportunities and make the most out of business messaging. For more information or industry insights, browse through our blog page or follow us on LinkedIn.