Three tiers for Canadian chatbots
- Tier 1 chatbots are the most basic: interactive search engines. Some can answer simple questions. But most can only tell users how to perform a specific action or link to a relevant article.
- Tier 2 chatbots can provide additional information on specific queries, and direct customers to further resources.
- Tier 3 chatbots are the most advanced. They can process natural language and answer complex queries without redirecting users elsewhere.
The flipside is that, with the exception of two banks — Desjardins and CWB — that don't have a chatbot, all the banks in our sample have Tier 2 chatbots or higher. 9 have Tier 2 chatbots, and 2 have Tier 3 chatbots.
In other words, it looks like Canadian chatbots have evolved past being glorified search engines, and become more interactive and useful.
From chatbot to AI Assistant: A real evolution, or just a change in terminology?
While we've categorized 9 of the 13 chatbots in our sample as Tier 2 — and most refer to themselves as "virtual assistants" or "neo AI assistants," not chatbots, the reality is less exciting than it sounds.
Yes, these chatbots can do more than your basic Tier 1 chatbot. But they're more like sophisticated, interactive FAQs than the AI assistants the terminology they use to describe themselves suggests.
More often than not, the outcome of an interaction is that the customer will be directed towards a specific option or to an external resource.
The AI functions as a guide, but it doesn't engage in open-ended, conversational interactions. And most seem to lack the capacity for nuanced understanding, complex problem-solving, or personalized advice.
Case in point, when asked about an account balance, KOHO's Kodi doesn't offer the information directly, but steers the user to log on to the app or digital portal.
As you can see from the screenshot from Neo Financial's chatbot below, even slightly more advanced interactions — like asking about monthly spending or categorized transactions — tend to stick to the facts without providing much insight or analysis.
Anatomy of a Tier 3 chatbot: A deep dive into TD Bank's Clari and CIBC's virtual assistant
Where Tier 2 chatbots remain largely menu-driven, Tier 3 Canadian chatbots are much more sophisticated.
Both Tier 3 chatbots in our sample — TD Bank's Clari and CIBC's virtual assistant — can handle complex queries and interact with customers using natural, conversational language.
That said, TD Bank's Clari is more well-rounded than CIBC.
Deep dive 1: TD Bank's Clari
In the year since our initial analysis, Clari remains a chatbot with strong capabilities, more advanced than the rest of the sample.
Its "Ask me something" function can answer complex queries in natural, conversational language, without redirecting the user elsewhere.
It's also able to give in-depth insights about the user's financial habits, including detailed expense tracking and spending analytics. Additionally, users can ask Clari to transfer money between their TD accounts.
Compared to CIBC's, the user interface is also clearer and more user-friendly.
Deep dive 2: CIBC
While Clari has a slight edge over CIBC's chatbot, the latter has arguably made the most progress, by going from Tier 1 straight to Tier 3.
The new and improved CIBC chatbot can answer questions using natural language, without redirecting the user elsewhere. It also supports complex workflows, such as setting up recurring transfers, including assisting with issues as they arise.
Where CIBC's chatbot falls short is that it can't provide financial insights, while Clari can. Adding this capability will put it in a better position to compete with Clari.
Canada: A banking chatbot trendsetter?
In the EU, US, and UK research shows customers have largely unfavourable opinions about banking chatbots.
The good news? They're open to being persuaded otherwise. 70% of respondents to a Zendesk survey think they can improve the customer experience, particularly with AI.
While far from perfect — even CIBC, a Tier 3 chatbot, has room for improvement — Canada's chatbots are evidence of what's possible when you get it right.
And "right" means chatbots should do much more than enhance internal efficiency metrics. More importantly, they need to actually make it easier for customers to do what they need to do, in less time, without hair-tearing.
US, UK, and EU chatbots take note.
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