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Chatbot.
A chatbot is a program that communicates with people in text form — on a website, in WhatsApp or in internal tools. Simple chatbots follow fixed flows; modern AI chatbots understand freely worded questions and answer on the basis of a language model and the company's own knowledge.
Chatbot — Explained in Detail
There are two basic types. Rule-based chatbots work with predefined buttons and decision trees: the user picks 'opening hours' and gets the opening hours. They are predictable but rigid. AI chatbots use a large language model and understand questions in the user's own words. To answer correctly, they are given access to verified company content — usually through RAG — and clear rules about what they may and may not say.
A chatbot is useful where many similar questions come up and quick answers make a difference: opening hours, prices, procedures, availability, the status of an order. It can answer outside office hours, pre-qualify enquiries and pass them to the right person. Once it is meant to carry out actions, such as booking an appointment, the chatbot becomes an AI agent with access to tools.
The limits are just as clear. A chatbot without a good knowledge base makes up answers. A chatbot that offers no hand-over to a person frustrates. And a chatbot for a company with ten enquiries a week is often an expensive toy, where a good FAQ page and a phone number would help more. Since August 2026 the EU AI Act also requires that users in the EU can tell when they are talking to an AI.
A chatbot becomes measurable through a handful of metrics: the share of conversations resolved without human help, the number of enquiries handed over, satisfaction after the conversation and — especially important — a sample of answers that a person reviews regularly.
Example: a chatbot for a medical practice
Suppose a GP practice receives many identical calls every day: opening hours, vaccination appointments, prescription requests, holiday cover. An AI chatbot on the website answers these questions from a verified knowledge base that the practice team maintains itself. It deliberately does not answer medical questions, but refers patients to the phone or, in an emergency, to the emergency number. Prescription requests are taken as structured enquiries that the team checks.
Whether a chatbot is worthwhile for your business and how it is safeguarded is described in chatbot development. If the bot is also meant to act, booking appointments for instance, see AI agent development.
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Chatbot DevelopmentFrequently Asked Questions About Chatbot
That depends heavily on scope: a simple bot from a website builder costs little, while an AI chatbot with its own knowledge base, connections to other systems and safeguards against wrong answers is a software project. On top of that come running costs for the language model and upkeep. A realistic estimate is only possible once the tasks have been clarified.
Yes. AI chatbots can hallucinate, especially when the knowledge base has gaps. The remedies are a verified knowledge base, clear boundaries on topics, hand-over to a person when the bot is unsure, and regular spot checks.
A chatbot answers questions. An AI agent can additionally carry out actions on its own, such as entering an appointment, checking an order or sending an email. Many modern chatbots already have individual agent functions.
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