How to Build AI Chatbots: Full Guide from Beginner to Pro (Latest Update)

hi welcome back to the channel my name

is Bogdan and in this video I'll provide

you with the most comprehensive piece of

content on how to master AI chatbots if

you watch this video from start to

finish you'll be able to clearly

understand how AI chatbots work how to

build them and which kinds of chatbots

you can sell to businesses there is a

great tutorial on AI chatbots published

by leam Motley it covers a lot of Basics

so if you haven't checked it out yet

feel free to do so but it was published

almost a year year ago and since then

we've had a lot of updates Liam and I

actually discussed this recently how

rapid the technology advancement is I

mean in the last 10 months we've seen

more capable GPT models higher token

limits new tools Vision capabilities

once GPT 40 is fully released will have

audio input and output and all of these

updates obviously create new use cases

for businesses so long story short this

video is going to be an updated version

of a full guide on AI chatbots my team

and I worked on this video for over a

month we could have made it a paid

course but we decided to offer it for

free well not exactly for free you pay

for it you pay for it with your

attention which is the currency of today

right so make sure your investment pays

off watch this video as many times as

you need but understand the information

here and act on it remember knowledge

alone doesn't equal results your actions

do and for full transparency my business

interest here is clear I've been

building IT solutions for The Last 5

Years with my current CTO we build a SAS

product a Marketplace and now we run an

AI automation agency you can check it

out at boss. agency what we essentially

do is build these AI chat Bots voice

Bots and automation Solutions and we

sell them to various businesses we have

a team of developers we are fully

equipped to take on more complex

Solutions and we are not me specific so

the more leads we get the better if you

watch this video and find it valuable

YouTube algorithm will push it more I'll

get more attention and more leads for my

business I hope that makes sense to you

and explains why we spend a ridiculous

amount of time and effort to prepare

this comprehensive guide so what we'll

cover today first we'll discuss the AI

business potential if you clicks on this

video you already realize the potential

I know so I'll just quickly share some

important stuff

and explain what it means for you if you

want to leverage this AI opportunity

then we'll dive into understanding AI

chatbot this will be the theoretical

part of the video but I will only

discuss the parts that you'll deal with

in practice okay you absolutely must

understand and be able to talk about

these aspects because in 90% of cases

you'll touch on them during sales calls

of course if your goal is to build and

then sell these shots to businesses if

you if you want to learn more about llms

promting neural networks and other

fundamentals check out the suggested

videos in the description I highly

recommend Andre kpa's 1hour talk on

intro to large language models also

check out the IBM Channel they have a

great playlist called understanding AI

models and one of my favorite channels

is three blue one brown which also has a

fantastic playlist on neural networks I

also included a chapter on prompt

engineering because it is a skill it is

a skill that you need to learn in order

to build efficient AI chatbots I'm going

to share some tips and hacks on

prompting that can save you a lot of

money so make sure to use them next I'll

share some interesting use cases all of

them are from real life experiences as

we get daily leads looking to implement

AI Solutions in their businesses we have

plenty of stories to share and then in

the Practical part of the video I'll

review the most useful tools for

building and deploying AI chbs I'll show

you how these tools have evolved over

the past year adding some very

interesting features finally we get to

the most exciting part the Practical

tutorials you might be tempted to skip

everything and just jump right to this

but I urge you to give the theory part a

chance because you need to understand it

before implementing these solutions for

the tutorials I'll guide you through

comprehensive Solutions step by step

sharing my screen first I'll use a no

code chatbot Builder to create a basic

customer service chatbot then I'll show

you how to build a more advanced chatbot

introducing a product recommendation

algorithm after that I'll demonstrate

how to use custom code and different

llms such as Cloe and Gemini explaining

which cases each llm is best suited for

and eventually I'll show you a

comprehensive AI chatboard capable of

providing customer support recognizing

images and recommending real products

based on the customers needs so we've

packed a few tutorials into one

comprehensive video to make it as

valuable for you as

possible I could spend a lot of time

discussing AI Trends and growth rates

and by the way the AI Market is

estimated to hit $1 trillion in the next

six years numerous studies show that the

adoption rate of AI am businesses will

keep increasing as shown in this slide

but I will only say one word that should

matter most timing obviously this is a

technology Revolution every company is

diving into it we just had Apple's WWDC

event introducing Apple intelligence

which means hundreds of millions of

people will start using AI accelerating

Mass adoption even faster it's clear

that we are quickly heading into a world

where you can just take your phone talk

to it and it responds intelligently

knowing you and historically the

penetration of new technology ology

typically begins with businesses to

Consumer b2c Market before expanding

into the B2B sector businesses to

business it happened with social media

platforms it happened with the internet

and it's just beginning to happen with

AI in the last 20 years we've seen

businesses go digital companies made

websites set up social media profiles

and moved from offline to online ads the

next big thing is going to be automation

especially with AI getting into to

business processes this change aims to

cut costs save time and overall boost

efficiency and if we look back at the

early days of going digital companies

that focus on making websites and doing

social media marketing made a lot of

money because the timing was right now

we have a similar opportunity with AI

agencies that focus on AI and automation

will be key in helping businesses get on

board with these new technologies as

more businesses start using AI you want

to get in as early as possible this

chart shows the technology adoption

cycle and we are still at the early

adoption stage which represents only

13.5% of the market when the early

majority and then the late majority

start looking to implement AI Solutions

you want to already be established as an

expert with track record with case

studies in your portfolio again right

now only a small number of businesses

use AI but that's changing fast so the

best time to start building and selling

these Solutions particularly AI chatbots

is

now all right let's talk about chatbot

just to make sure we're on the same page

we've got two types here old school

rule-based and the new AI powered ones

the old school rule-based chwat are

pretty limited and manual they work by

following a set of predefined rules

which means they can't handle anything

outside those rules on the other hand AI

powered chatbots use large language

model to understand the user's query and

provide an answer that's obvious right