Chatbot

Simple Definition

A chatbot is a software program designed to simulate a conversation with users, responding to messages, answering questions, or completing specific tasks through a chat interface.

The term covers a wide spectrum: from simple scripted bots (“press 1 for billing”) to sophisticated AI assistants powered by large language models.

Rule-Based Chatbots vs. AI Chatbots

Rule-based chatbots:

• Follow predefined scripts and decision trees
• Can only respond to questions they were explicitly programmed for
• Fail or give unhelpful responses when users go off-script
• Used for: FAQ bots, simple customer service, form-filling

AI-powered chatbots (LLM-based):

• Understand natural language and context
• Can handle unexpected questions
• Generate responses dynamically rather than retrieving scripted answers
• Can have multi-turn conversations with memory
• Used for: general-purpose AI assistants, advanced customer service, sales

Examples

Business Uses for Chatbots

• Customer support (answering FAQs, resolving simple issues)
• Lead qualification and sales assistance
• Onboarding and product education
• Internal knowledge base Q&A
• E-commerce (product recommendations, order tracking)

Related Terms

• AI Assistant, more capable than a traditional chatbot
• LLM, the technology behind modern AI chatbots
• Natural Language Processing, what enables chatbots to understand language
• AI Agent, a more capable successor to chatbots that can take actions