What Is an AI Chatbot and How Does It Work?
A practical definition of AI chatbots, their core parts, the difference from rule-based bots, and business selection criteria.
Short answer
An AI chatbot is conversational software that understands natural language and uses an AI model plus knowledge sources to produce a relevant answer.
Core parts
A business chatbot commonly combines a chat interface, language model, knowledge base, response policy, and human handoff.
- Web or messaging interface
- Relevant information retrieval
- Response generation and confidence control
- History and feedback
Rule-based difference
A rule-based bot follows written paths. An AI chatbot handles varied wording better but requires sources and controls for reliable answers.
Selection criteria
Evaluate language quality, source management, escalation, access control, and reporting. Feature count without operational control is not enough.