How to set up an FAQ chatbot on your website

Every day people ask the same five questions on your website: your hours, whether you service their suburb, how much a standard job costs. You can't sit on live chat all day, so they leave.

Step by step

1. Write or collect your FAQs first. Real questions, real answers. This matters more than the tool.
2. Pick a chat tool that lets you limit answers to your own content.
3. Upload your FAQ page, services and policies as the knowledge source.
4. Set a clear handover: if the bot isn't sure, it collects name, email and question and tells the customer you'll reply.
5. Test it with 20 tricky questions, including ones it shouldn't answer (prices you don't publish, medical or legal advice).
6. Review the chat log weekly and add missing answers to your FAQ.

Watch-outs

• Bots can confidently say wrong things. Restrict them to your content and check logs.
• Tell people they're chatting with a bot.
• Make sure the chat tool's privacy terms suit your business.

A worked example

A Sunshine Coast pet grooming salon installs Tidio's chatbot. The owner adds 20 questions and answers from her inbox (prices including GST, suburbs, vaccination requirements, cancellation policy) to Lyro, Tidio's AI chatbot. She sets it to hand over to a human for anything it can't answer, collecting a name and email for a callback.

She reviews chat transcripts every Friday and adds any new questions to the knowledge base. After a month the chatbot handles most routine questions on its own, and she only steps in for bookings and the occasional nervous first-time dog owner.

What it costs in Australia

Tidio has a free plan with limited AI conversations. Its Starter plan is about US$24.17 a month billed yearly (approx. A$35), and the Lyro AI chatbot add-on starts at about US$32.50 a month (approx. A$46). Intercom and Crisp also offer chatbot plans, ranging from free to A$100+ a month depending on features. Some website builders include a basic chatbot at no extra cost. Zapier Chatbots has a free tier with two chatbots.

Prices are approx., October 2026, converted at about A$1.43 per US$1 where the vendor charges in US dollars. Your bank may add a foreign transaction fee. Check the vendor's pricing page before you buy.

The legal bits

Privacy Act: if your chatbot or bot collects names, emails or phone numbers, that's personal information. Tell people what you collect and why, link your privacy policy, and know where your vendor stores the data (APP 8 covers sending personal information overseas). The Australian Privacy Principles apply to businesses turning over more than $3 million and to some smaller ones, such as health providers. Following them anyway is good practice and builds trust.

Add a line to the chatbot's welcome message saying it's an automated assistant and linking your privacy policy. Don't let the chatbot ask for sensitive information like health details or card numbers. If you use the chatbot to send marketing messages later, you'll also need consent under the Spam Act 2003.

Questions

Will it replace phone calls?

No. It handles the simple stuff so your calls are about real work.

What if it gives a wrong price?

Don't give it prices you don't want quoted. Have it hand over to you instead.

Will an AI chatbot make things up?

It can. Limit it to your own FAQ content, test it with tricky questions, and have it hand over to a human when unsure.

Do customers mind talking to a chatbot?

Most don't, if it's honest about being a bot and gets them an answer or a human quickly.

Do this today

Write down your 10 most common customer questions with answers. That's your chatbot's knowledge base, and you can start a free trial today.

Related guides

• How to set up a social media posting bot
• How to set up a review request bot
• How to set up an appointment booking bot

Need prompts for the AI steps? See 40 AI use cases with copyable prompts. Want a hand? Get in touch.