Chatbot (Conversational AI)
GLOSSARY
Definition
A chatbot is software that conducts text or voice conversations with users, typically on a website, messaging app, or social platform. Rule-based chatbots follow decision trees. AI-powered chatbots use large language models to generate responses and handle questions they weren't explicitly programmed for.
Why it matters
The first wave of chatbots (2016-2019) was mostly disappointing — glorified FAQ menus that frustrated users and got turned off. The LLM wave changed the economics. A chatbot that can actually understand a question and pull the right answer from your knowledge base is useful in a way the old ones weren't. The remaining problem is trust: customers don't know if they're talking to a bot, and when the bot confidently gives a wrong answer, the brand takes the hit.