Chatbot
An AI application designed to simulate conversation with human users through text or voice. Modern chatbots use LLMs to provide natural, contextually aware responses.
Why It Matters
Chatbots are the most common interface for AI in business — handling customer service, internal support, sales assistance, and knowledge management.
Example
A banking chatbot that can check account balances, explain transaction details, initiate transfers, and escalate complex issues to human agents.
Think of it like...
Like a digital receptionist who can handle common questions and tasks, knows when to escalate to a specialist, and is available 24/7.
Related Terms
Large Language Model
A type of AI model trained on massive amounts of text data that can understand and generate human-like text. LLMs use transformer architecture and typically have billions of parameters, enabling them to perform a wide range of language tasks.
Natural Language Processing
The branch of AI that deals with the interaction between computers and human language. NLP enables machines to read, understand, generate, and make sense of human language in a useful way.
Conversational AI
AI technology that enables natural, multi-turn conversations between humans and machines. It combines NLU, dialog management, and NLG to maintain coherent, contextual interactions.
AI Agent
An AI system that can autonomously plan, reason, and take actions to accomplish goals. Unlike simple chatbots, agents can use tools, make decisions, execute multi-step workflows, and adapt their approach based on results.