Knowledge databases: How Artificial Intelligence builds its valuable knowledge
How well artificial intelligence performs in customer service is determined not only in live chat, but much earlier: during the setup of its knowledge repertoire, the so-called knowledge base. In this article, you will learn why a well-maintained knowledge base is the cornerstone of every chatbot - and how modern AI agents like magnamate can find the right information in seconds.
Published
07/01/2025
Topic
Artificial Intelligence
Table of Contents
The most important things at a glance
Knowledge databases store information in a systematic and easily searchable form for both humans and machines.
The goal is to enable quick and targeted retrieval of relevant information for computers, employees, customers, and other users.
From simple FAQs to automated process chains, there are various use cases and levels of complexity.
A large part of customers now expects to be able to use self-service tools before they have to contact customer service.
As a AI agent, magnamate has an advanced and customizable knowledge database that automates your customer service in no time.
What is a knowledge base?
A knowledge base, also known as a Knowledge Base, is a centralized, systematic, and easily searchable collection of relevant information. You can think of it as the digital version of a meticulously organized shelf full of labeled folders.
It enables people as well as computers to have quick and targeted access to needed knowledge. This includes, for example, product data, FAQs, and even real-time data such as the current location of an order.
Knowledge bases thus form the foundation for the increasingly important self-service: According to the Trend Report from Zendesk, today 79% of customers expect companies to provide them with self-service tools before they need to contact customer service.
Modern support solutions like magnamate also rely on comprehensive knowledge bases to answer questions, make decisions, and initiate processes such as returns.
"One of the most important lessons from AI research is that knowledge is the key resource for intelligent behavior."
P. (2021) emphasize in their book "Artificial Intelligence: A Modern Approach" the enormous importance of knowledge for AI systems.
How do you build a knowledge base?
To build a simple knowledge base, it is essentially sufficient to gather relevant information and store it in a systematic, easily accessible format.
Examples of such static knowledge bases include glossaries or FAQ sections, where your customers can independently search for relevant answers to their questions.
More advanced solutions like magnamate also rely on information sources such as FAQs, product manuals, and customer information to generate accurate answers.
Additionally, modern technologies and interfaces are used that enable extensive automation and access to real-time data.
Study shows: Customers prefer to take their problems into their own hands
Even the establishment of a simple knowledge base can already be worthwhile for you: According to a study by the renowned Harvard Business Review, 81% of all customers try to solve problems on their own before contacting a service representative.
What types of knowledge bases are there?
As already indicated, knowledge bases can be used in different ways. Their role - a central collection of structured knowledge - remains the same. However, the output largely depends on the technology used.
Basically, we can classify knowledge bases into three categories:
Static knowledge bases are traditional collections of relevant information that are readable in plain text for humans. Examples: FAQs, encyclopedias, or manuals.
Vectorized knowledge bases utilize AI technologies such as RAG (Retrieval-Augmented Generation) to extract relevant knowledge and automatically generate a context-based response for users. This category includes classic AI chatbots.
“Agentic” knowledge bases - in addition to the RAG technology - rely on interfaces (APIs) to tap into dynamic real-time data from external sources. AI agents like magnamate utilize this capability to access live order data from customers, for example.
AI Agents in E-Commerce: Automate Customer Service in a Flash
Modern AI agents like magnamate elevate your customer service to a new level in no time. Learn about "Agentic Behavior" and how you can benefit from magnamate's state-of-the-art features in our separate article on Agentic AI.
Below we compare the three types of knowledge databases according to the most important criteria:
| Level | Complexity | Examples | Typical Features |
|---|---|---|---|
| 1. Static | Low | FAQ pages, wikis, PDF manuals |
|
| 2. Vectorized | Medium | Conventional AI chatbots |
|
| 3. Agentic | High | AI agents like magnamate |
|
Three advantages of an agentic knowledge database
"Agentic" knowledge databases are not only particularly easy for you as an end user to set up, but they also offer significant advantages that can specifically improve your customer service:
Immediate and precise answers 🎯
While your team often juggling multiple requests, AI agents like magnamate act without delay. They understand even complex issues within seconds and provide the appropriate response immediately. And they do this around the clock - completely independent of time zones, holidays, or seasonal peaks. Plus: they are guaranteed to never be in a bad mood!
Personalized customer experiences 🎨
AI agents transform your webshop from an anonymous online catalog into a personalized shopping experience. Thanks to intelligent analyses of purchase history and customer behavior patterns, they make tailored recommendations.
With the image search feature from magnamate, which we are currently working on intensively, consulting will become especially intuitive: customers simply upload a picture of their desired product, and the AI presents comparable items from your selection in seconds. Precise, straightforward, and very close to the real shopping experience.
Scalability and Automation 🤖
Whether it’s address corrections, cancellations, or status updates: the AI handles many tasks completely without the involvement of your employees. For this purpose, you can easily connect shop systems (currently Shopify and Shopware) via API or have us program custom interfaces to other shops as well as ERP or CRM systems.
Your team is thus significantly relieved and can utilize the resources gained elsewhere. By the way: If magnamate needs your help, it will notify you via email so that you can take over at any time via live chat (so-called Agent Handover). Our AI agent collects open tasks in a clear to-do list.
magnamate is the clever solution for online retailers who want to take their customer service to the next level. As a powerful agent, magnamate effortlessly handles even complex support inquiries, allowing you to finally focus on what matters most.
magnamate combines multiple data sources to build a comprehensive knowledge database tailored specifically to the content of your webshop:
Shop APIs: By entering the API access data for common shop systems like Shopify and Shopware once, magnamate accesses important product, order, and customer data.
Webshop Crawling: Our proprietary AI-powered crawler analyzes all relevant content from your shop and optimally prepares it for later use in customer service.
Your Own Content: FAQs, guides, and additional information such as custom prompts (more on that shortly) can be additionally stored to provide even more individuality.
Personalized fine-tuning gives real character
Conventional chatbots often come across as cold and characterless. Not so with magnamate: Thanks to numerous design options and custom prompts, it integrates seamlessly into your brand image - both visually and content-wise.
For this purpose, you have the option in the backend to provide custom prompts with individual instructions to magnamate. For example, you can instruct it to appear particularly friendly towards your customers, use more emojis, or even act with humor.
Always the right answer - thanks to the latest technology
To formulate context-related answers, magnamate uses the aforementioned RAG technology. This means that for each inquiry, the most relevant content is pulled from a so-called vector database and used as the basis for the AI response.
In simplified terms, it works like this:
Vectorization: The request is converted into a type of numerical series that mathematically represents its content meaning.
Retrieval Phase: The vector database containing all important data and web shop content is searched for relevant information.
Insert Context into the AI Prompt: The most important text excerpts are added as context.
Response Generation: magnamate then creates a precise and context-based response, based on current and verified data.
Thanks to advanced retrieval algorithms – our "Magic Sauce" – magnamate goes far beyond the standard of conventional chatbots. Even complex or ambiguously formulated requests are understood accurately and answered with the appropriate content.
Experience for yourself how simple modern customer service can be: Test magnamate now completely free of charge and benefit from state-of-the-art features that will automate your customer support:
Automated Training & Agentic Features: magnamate regularly learns everything important about your shop and your customers. This enables it to perform autonomous actions such as product recommendations. Read more about our agentic features here.
Seamless Integration & Customized Design: The connection to common shop systems works just as quickly as it is straightforward, and the interface can be visually tailored to your own taste. Read more about shop integration here.
Live Chat Takeover & AI-Generated To-Dos: In complex cases, you will be notified and can take over via live chat; open tasks for you are clearly provided as a to-do list. Read more about live chat features and the agentic handover here.
AI-Powered Chat Analytics: Based on completed chats, magnamate provides you with targeted recommendations for action to improve your customer service. Read more about our K-Analytics here.
100% GDPR Compliant: Data protection is our top priority - all customer data is processed securely and in accordance with the law. Read more about our data protection measures here.
A well-structured knowledge base can be much more than just a digital reference work. Properly utilized, it forms the foundation for advanced automation, as seen in modern, AI-based customer service.
The potential of this is highlighted by a recent report from Grand View Research, which states that the market for Retrieval Augmented Generation is expected to grow by 46.8% per year by 2030. By the end of 2024, it was already at an impressive $217.7 million.
The example of magnamate shows why this is not surprising - and what enormous benefits arise for users in practice. Test our AI agent now completely free of charge and benefit from top-notch customer service via AI agent!
