Understanding Our AI Chatbot:
Compliance with the EU AI Act
Our AI-powered chatbot delivers efficient and tailored customer interaction
by leveraging predefined workflows and WhatsApp-native features such as button
messages, interactive lists, external link buttons, and dynamic forms. Designed
to handle common customer queries, the chatbot ensures a seamless user
experience while aligning with your brand’s voice and objectives.
This
document explains the chatbot’s technical foundations, operational flow,
benefits, and limitations, with a focus on compliance with the EU AI Act (Regulation (EU) 2024/1689). Payemoji’s AI service require transparency measures, such as
disclosing AI interaction to users and offering human escalation options. We
achieve compliance through audited Azure cloud services, GDPR-aligned data
handling, and regular system performance reviews.
How the AI Works
Our chatbot employs a Retrieval-Augmented Generation (RAG) architecture, powered by Azure OpenAI for natural language generation and Azure AI Search for intelligent data retrieval. RAG
combines the information retrieval and generative AI to produce accurate,
context-specific responses grounded in customer-provided data. The process is
illustrated and detailed below.
Data Ingestion and
Preparation
- Website
Crawl: We conduct a weekly crawl of your specified
website domains to collect up-to-date content. Our crawler adheres to robots.txt instructions, ensuring only
permitted sections are accessed. Customers must explicitly approve crawls, and
you can prune specific sections (e.g., internal portals, outdated pages,
product catalogues where catalogues are uploaded seperately) to maintain
relevance.
- Customer-Provided
Data: You supply additional data, such as FAQ
documents or individual “facts” (e.g., product specifications or policy
statements) as well as entire product catalogues to ensure accuracy. These are
securely ingested and indexed alongside website content for efficient
retrieval.
User Interaction via
WhatsApp
Users
interact with the chatbot through WhatsApp’s messaging API, which supports
structured workflows:
· Button
Messages: Quick options like “Yes/No” or topic
selectors (e.g., “Check Order Status” or “Product Info”).
· Interactive
Lists: Multi-option menus for navigating complex
queries (e.g., selecting a product category).
· Forms: Structured inputs for tasks like submitting feedback or updating
account details.
· External
Links: Call buttons, URL links
· eCommerce
Product Catalogues and Checkout: native WhatsApp
eCommerce product selectors and cart functionality
For
predefined workflows, the chatbot responds instantly. For open-ended or complex
queries, it proceeds to the RAG process.
Semantic Search
The user’s
WhatsApp message is sent to Azure AI Search, which employs semantic ranking to identify the most relevant content from your indexed data. Semantic
ranking uses advanced natural language processing to understand query intent,
returning the top 5 results based on contextual relevance rather than simple
keyword matching. Top 5 is default
however this can be customized depending on the individual customer particularly
those with large product catalogues.
Example: A
query like “What’s the return policy for ABC Limited?” retrieves FAQ entries or
website sections about returns, even if phrased differently.
Response Generation
The top 5
search results are passed to Azure OpenAI, along with a customer-specific
prompt tailored to your brand’s tone and policies. The
default prompt includes strict instructions:
- Respond
only using the provided search results and customer data, ignoring the AI’s
general knowledge base.
- If no
relevant results are found or the query is off-topic, use a fallback response,
e.g., “I’m sorry, I don’t have that information available, but I can help with
anything else related to ABC Limited!”
The AI
summarizes the results into a concise, user-friendly response, delivered via
WhatsApp with optional interactive elements (e.g., buttons for follow-up
actions).
Example:
For a query about store hours, the chatbot might respond, “ABC Limited stores
are open from 9 AM to 6 PM, Monday to Saturday. Would you like to check hours
for a specific location? [Yes/No].”
Monitoring and Updates
· Interactions
are logged securely (with anonymization) to monitor performance and compliance.
· Weekly
website recrawls keep the data fresh, and you can request manual updates for
FAQs or facts as needed.
· Regular
review of logs combined with different methods of customer and user feedback.
· Updates
are made based on recommendations and mandates from Azure to maintain
compliance using their service. Security
and content policies from Azure are also used to provide the service
Benefits of Using RAG
The RAG approach offers several advantages for your business and
end-users:
· Reduced
Hallucinations: By grounding responses in your
verified data, RAG minimizes the risk of generating incorrect or fabricated
answers, enhancing trust and reliability.
· Customized
Messaging: Responses reflect your brand’s voice and
content, ensuring consistency across customer interactions (e.g., matching your
website’s tone or policy wording).
· Efficiency
and Scalability: Semantic search enables quick and accurate
responses.
· Compliance
Support: RAG’s reliance on customer data supports
EU AI Act transparency requirements by making responses traceable to specific
sources, reducing biases from broad AI training data.
· Flexibility: Weekly crawls and manual data updates allow the chatbot to adapt
to changing information, such as new products or policies.
Potential Downsides of
RAG
While RAG is a great solution to ensure focus on your brand voice and limiting the expansiveness of responses, it has limitations:
· Dependency
on Data Quality: Outdated, incomplete, or
inconsistent data (e.g., old FAQs or old product catalogues) can lead to
inaccurate responses. Regular updates and review are key.
· Limited
Scope for Novel Queries: RAG excels at factual
responses but may struggle with queries outside your data, resulting in
frequent fallback messages for off-topic questions.
· Performance
Overhead: Semantic search and summarization may
introduce minor latency (typically milliseconds) although this is minimized through
the use of Azure’s infrastructure.
We address these through regular data audits, customizable prompts,
and performance monitoring, but your input is essential for optimal results.
What This
Means for You as a Customer
To maximize the chatbot’s effectiveness and ensure compliance with
the EU AI Act, customers have the following responsibilities and best
practices:
· Provide
Up-to-Date Data: Regularly update FAQs, facts, or
time-sensitive information (e.g., promotions or policy changes) not covered by
website crawls. Outdated data may lead to incorrect responses, impacting user
trust.
· Test AI
Responses: Before and after deployment, simulate
common queries to verify accuracy, tone, and workflow integration. For example,
test queries like “How do I return an item?” or “What are your prices?” to
ensure proper handling.
· Review
Website Content: Approve crawls and exclude
irrelevant or sensitive sections (e.g., employee portals) via
robots.txt or manual pruning. Regularly
check your website for outdated content.
· Monitor for Errors: Review chatbot logs and error logs periodically to identify unintended patterns, such as biased responses from
source data (e.g., FAQs favoring one product). Report issues for prompt
correction.
· Ensure
User Transparency: Inform end-users they’re
interacting with an AI, as required by the EU AI Act. For example, include a
welcome message like, “Hi! I’m ABC Limited’s AI assistant. How can I help you
today?"
· Offer
Human Escalation: Provide clear options for users
to escalate to human support, such as a button or command (e.g., “Talk to a
person”). This aligns with the Act’s emphasis on user control.
· Comply
with GDPR: Ensure any customer data shared with us
(e.g., in forms) complies with GDPR. We handle data securely, but you’re
responsible for obtaining user consents where applicable.
Conclusion
Our
AI-powered WhatsApp chatbot leverages RAG to deliver accurate, brand-aligned
support while meeting EU AI Act requirements for transparency and
accountability. By understanding its functionality and maintaining high-quality
data, you can ensure a reliable, compliant, and user-friendly experience.