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Glossary

What is a chatbot? Explained

A plain definition of chatbots, the difference between rule-based and AI chatbots, what they are used for, where they fall short, and when they become agents.

Updated

Definition

Chatbot

A chatbot is software that holds a conversation with a person by text or voice. It takes a message, works out what the person wants and sends a reply. That is the answer to what is a chatbot in one sentence.

In short: A chatbot talks. It does not act on its own.

What exactly is a chatbot

  1. 01

    Person writes

    A question arrives by text or voice.

  2. 02

    Bot reads it

    The software works out what the person wants.

  3. 03

    Bot answers

    A reply goes back in the same channel.

IBM describes a chatbot as a conversational tool that answers customer queries automatically, simulating written or spoken human conversation.

The key word is simulating. The software does not understand a person the way a colleague does. It matches the message to something it can answer and replies.

You meet chatbots in a chat window on a website, in a messaging app or on a phone line.

Rule-based vs AI chatbots

Rule-based

  • Follows a fixed script
  • Matches buttons or keywords
  • Stalls on unexpected wording

AI chatbot

  • Reads free-form messages
  • Writes its own replies
  • Keeps context in the chat

A rule-based chatbot follows a script. It offers buttons or matches keywords, then returns a fixed answer. It is predictable, but it fails when a person words a question in an unexpected way.

What is an AI chatbot? It is a chatbot built on a language model, so it reads free-form messages and writes its own replies.

People ask what type of AI a chatbot is: most modern ones rely on natural language processing and large language models. See large language model for that term.

A conversational AI chatbot is the same idea with more focus on keeping context across a long exchange.

A RAG chatbot adds one step: it first looks up your own documents, then writes the answer from them. Read more in retrieval augmented generation.

What a chatbot is used for

  • Answer questions

    Hours, orders and policies, any time of day.

  • Qualify leads

    Collect contact details at the first message.

  • Book visits

    Set appointments and send reminders.

  • Hand off

    Pass the chat to a person with context.

What is the purpose of a chatbot? To answer routine questions quickly, at any hour, so people spend time on harder work.

Use is spreading. Stanford's 2025 AI Index reports that 78% of organizations used AI in 2024. The year before it was 55%.

What is a chatbot used for, in short? Answering common questions, booking and routing requests.

Limits, and when a chatbot becomes an agent

A chatbot does

  • Holds a conversation
  • Answers from set content
  • Hands off to a person

It usually does not

  • Plan its own steps
  • Act inside your CRM
  • Process a return alone

A chatbot answers; it rarely acts. It can state your return policy, but it usually cannot process the return in your systems.

An AI chatbot can also state something wrong with confidence, which is why many teams limit it to approved sources. See AI hallucination.

The line is crossed when the software plans its own steps and uses tools.

IBM says AI agents are proactive, autonomously planning and taking actions toward a defined goal with the tools and permissions available to them.

The compare page on AI agent vs chatbot sets out the difference in detail.

Honesty matters as well. The FTC says AI gets no exemption from existing law, so a chatbot must not mislead the people using it.

What is a conversational AI chatbot? One that understands free text instead of fixed buttons. What is a RAG chatbot? One that answers from your own documents.

Our data

What AI answers when buyers ask

We asked ChatGPT, Gemini and Perplexity 10 buyer questions about AI customer service. They named 101 companies, and 79% appeared in only one of the three.

CriterionChatGPTGeminiPerplexity
Companies named403851
Sites cited mostzendesk.com (5 of 10)botpress.com and gartner.com (5 of 10)sobot.io (6 of 10)

Nexum measurement, October 20, 2026, via DataForSEO: 10 buyer questions to each AI, US English, 30 answers in total. 7 companies appeared in all three. Google showed an AI Overview for 8 of the 10 questions.

FAQ

Chatbot questions

  • A chat window on a store website that answers order questions is a common example. Voice assistants like Alexa and Siri are close relatives, since they also respond to spoken requests, though they handle wider tasks.

  • Common groupings are rule-based, keyword-driven, AI-powered and hybrid chatbots. Hybrid ones mix fixed rules for predictable steps with a language model for open questions.

  • No. A chatbot holds a conversation, while an agent plans steps and uses tools to finish a task. Our AI agent entry explains the parts.

  • Yes, when the questions are repetitive and the answers are clear. Start with one narrow job, such as order status, and check the replies before widening it. See AI in small business.

  • Chatbots take routine questions, so people handle the cases that need judgment and care. Most teams use both, with a clear handoff from bot to person.

  • In artificial intelligence, a chatbot is an application of language technology. The chatbot is the conversation layer, and the AI model behind it reads and writes the replies.

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