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AI Chatbot Development

Chat assistants that answer from your own content, on your website, in Microsoft Teams or at your support desk, and hand the conversation to a person when they should. Tested on your real questions before your customers or staff see them.

What our chatbots do

Answer from your content

The chatbot is set up to answer from the material you approve, such as help articles, policies and product data, and to show where an answer came from. For how it finds the right passage for each question, see our custom AI solutions.

Follow the conversation

People can ask follow-up questions the way they would ask a colleague, without repeating what they said a moment ago.

Hand over to your team

When a question is out of scope, or someone asks for a person, the chatbot passes the conversation to your staff with what has been said so far.

Work where people already are

A chat window on your website for customers, or an assistant inside Microsoft Teams for staff, so nobody has to learn a new tool to use it.

Where your chatbot runs

A chatbot usually lives in one of two places: a chat window on your website, or Microsoft Teams. We build ours with the Microsoft 365 Agents SDK, which supports C#, JavaScript and Python, so one chatbot can reach your website, Microsoft Teams and Microsoft 365 Copilot.

Azure AI Bot Service connects the chatbot to each of those channels. On a website it uses the Web Chat or Direct Line channel, and we keep the channel’s secret on your server, exchanging it for a short-lived token, rather than placing it in the web page where anyone could copy it.

Azure AI Bot Service supports other channels too, such as Slack, Telegram, email and Twilio SMS. Whether any of them suits your customers is something we check with you on the discovery call.

Where a chatbot helps

  • Customer support: the everyday questions your team handles, answered from your approved content, including outside office hours, with anything that needs a person passed to your team.
  • Enquiries: collecting what a prospect needs before passing the enquiry to the right person.
  • Bookings: answering questions about availability, preparation and policies before and after an appointment.
  • Order and request status: looking a record up in your systems. Once a chatbot changes things in your systems as well, it becomes an agent; see AI agent development.
  • Internal helpdesk: IT, HR and policy questions from staff, answered inside Microsoft Teams.
  • Product questions: comparing options and pointing people to the right item in your catalogue.

Keeping answers accurate and safe

  • The chatbot is set up to answer only from content you approve and to show its sources, so people can check what it says.
  • Before launch, the chatbot is tested on a set of questions your customers or staff actually ask, with the answers you expect; the same set runs after every change.
  • When the content does not cover a question, the chatbot is set up to say so and offer a person rather than guess, and the test set checks that it does.
  • By default, Microsoft’s guardrails on Azure OpenAI chat models block hateful, sexual, violent and self-harm content rated medium severity or above, in questions and in answers, and screen questions for jailbreak attempts (messages written to make the model break its rules). They reduce harmful output rather than guarantee against it, so our test set also includes questions the chatbot must refuse.
  • Once it is live, we go through the questions it had no answer for and fill those gaps in your content or in its instructions.

What a chatbot costs to run

A chatbot costs money to run as well as to build. Microsoft bills the running costs on your own Azure subscription, separately from our fees, and its prices vary by region and agreement, so we link to Microsoft’s pricing pages rather than quote figures.

Running costs, billed on your Azure subscription, as of October 2026
CostWhat drives itHow Microsoft bills it
Model usageThe length of each question, the passages added from your content and the length of each answerPer token on pay-as-you-go deployments, or through provisioned throughput units (Azure OpenAI pricing (opens in a new tab))
Search indexHow much content is indexed and how many searches people runBy search unit per hour on the dedicated tiers of Azure AI Search, which Microsoft now prices as Foundry IQ (Foundry IQ pricing (opens in a new tab))
Channel messagesHow many messages pass through premium channelsStandard channels such as Microsoft Teams carry unlimited messages. Premium channels, which Microsoft describes as reaching users within your own website or app, include 10,000 messages a month on the Free tier and are charged per 1,000 messages on the S1 tier (Azure AI Bot Service pricing (opens in a new tab))
HostingThe service that runs the chatbot’s codeBy the hosting plan you choose
MonitoringLogs and traces kept so problems can be foundMainly per GB of data ingested into Azure Monitor and Application Insights (Azure Monitor pricing (opens in a new tab))
  • A smaller, cheaper model for simple turns, and a larger one only where the answer quality needs it.
  • Giving the model only the handful of passages that answer the question, so each request stays short.
  • Reusing answers to questions that come up again and again.
  • A monthly budget agreed with you, with alerts sent as spending nears it, so a sudden jump in conversations is spotted mid-month rather than on the invoice.

Chatbot, agent or Copilot Studio?

A chatbot only answers. An AI agent goes further and carries out the request in your systems, for example raising a ticket or moving a booking, inside limits you set and with a person signing off anything sensitive.

Copilot Studio, Microsoft’s graphical, low-code studio, lets a team build chatbots and agents without writing much code. When your staff would rather build and edit the chatbot themselves, and everything it has to do is within Copilot Studio’s reach, we suggest Copilot Studio instead of a custom build.

To work out which of the three fits your case, book a free discovery call (opens in a new tab), or read how we build agents for Microsoft Teams and Microsoft 365 Copilot.

How we build one

  1. Agree what it may answer

    We list the questions it should handle, the content it may use, the tone it should take and the moments it must hand over to a person.

  2. Prepare the content

    We collect the approved material, remove what is out of date and index the rest so the right passage can be found for each question.

  3. Build and test on real questions

    We build the chatbot and run it against your test questions until the answers meet the standard we agreed.

  4. Pilot with a small group

    A few staff or customers use it first. We read the conversations and fix the gaps before a wider launch.

  5. Launch and keep it current

    We switch it on for everyone, then keep its content and test questions in line with your current products and policies, as needed or on a monthly retainer, Monday to Friday, 9 AM–6 PM IST.

Consulting
From ₹2,500 (US$40) an hour
Monthly retainer
From ₹2,00,000 (US$4,000) a month
Pilots and fixed-scope projects
Quoted per statement of work

GST is added to Indian invoices. Rate cards by business size and add-ons are on our pricing page.

Frequently Asked Questions

Can the chatbot answer from our own documents?

Yes. It is set up to answer from the content you approve rather than from the model’s general knowledge, shows its sources, and is tested against your real questions before launch.

Which channels can it run on?

Most often a chat window on your website and Microsoft Teams, and the same chatbot can also reach Microsoft 365 Copilot. Azure AI Bot Service supports other channels such as Slack, Telegram, email and Twilio SMS, and we check which suit you on the discovery call.

What happens when it cannot answer?

It is set up to say it does not know and offer to pass the conversation to your team, rather than guess. Those questions are reviewed after launch so the content can be filled in.

Can it pass a conversation to our staff?

Yes. The hand-over is designed with you: which questions go to a person, who receives them and how, with the conversation so far attached so nobody has to start again.

Does Microsoft use our conversations to train its models?

Microsoft’s commitment for Azure OpenAI and other models sold by Azure is that what people type and what the model replies are not shared with OpenAI or other model providers, and are not used to train any generative AI foundation models unless you give permission or instruction.

Can our chatbot’s data stay in India?

Partly. A bot registered as a regional bot in India keeps the data held by Azure AI Bot Service within India, but Microsoft notes that other Azure services and third-party channels run the risk of data leaving the region, and the language model may process prompts outside India depending on how it is deployed. We check each part with you before you commit, rather than promise end-to-end residency.

What does a chatbot cost to run each month?

It depends on how many conversations it handles and how long they are. Model usage, the search index, hosting, messages on premium channels and monitoring are charged by Microsoft to your own Azure subscription, not included in our fees, and we work out an estimate with you before the chatbot goes live.

Should we use Copilot Studio instead?

Sometimes. Copilot Studio lets your own staff build and change a chatbot with little coding, so if it can do everything yours must do, we would point you to it. A custom build is the better fit when you need your own choice of model, your own rules for handling data, or channels Copilot Studio does not cover.

How much does it cost to build a chatbot?

Consulting starts at ₹2,500 (US$40) an hour and monthly retainers at ₹2,00,000 (US$4,000); pilots and fixed-scope projects are quoted per statement of work after a free discovery call.
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