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Chatbot

A chatbot is software designed to converse with users in natural language, via text or voice. The category spans from old rule-based bots ("press 1 for support") following predefined paths to modern LLM-based assistants capable of open, contextual conversation.

Definition

The revolution happened right here: pre-LLM chatbots only understood the phrases their creators anticipated and frustrated users; those based on language models understand free-form phrasing, keep track of the conversation's context and handle requests they've never seen before.

For companies, the modern chatbot is often the first AI project: customer support, smart FAQs, internal employee support. The success factors: anchoring it to company sources (grounding/RAG to avoid invented answers), defining clear guardrails, and always providing for escalation to a human when a case requires it.

Related terms

• LLM (Large Language Model)
• AI Agent
• Grounding
• Guardrails
• NLP (Natural Language Processing)

More in AI Fundamentals

• LLM (Large Language Model)
• Token
• Context Window
• Temperature
• AI Hallucination
• Fine-tuning
• RAG (Retrieval Augmented Generation)
• Embedding

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