Chatbot
A chatbot is a software application designed to simulate human conversation through text or voice. Chatbots range from simple rule-based programs that follow pre-defined scripts to sophisticated AI-powered systems that understand natural language and generate contextual responses.
How it works
There are two main types of chatbots:
**Rule-based chatbots** follow pre-programmed decision trees. They respond to specific keywords or menu selections with pre-written answers. They are predictable but limited — they cannot handle questions outside their programmed scope.
**AI chatbots** use natural language processing and large language models to understand the intent behind messages and generate contextual responses. They can handle unexpected questions, maintain multi-turn conversations, and learn from new content. Modern AI chatbots (2025-2026) use retrieval-augmented generation (RAG) to answer from your specific knowledge base.
Chatbots are deployed as website widgets, in-app messengers, WhatsApp bots, Slack integrations, and voice assistants.
Why it matters
How Chatsy uses chatbot
Real-world examples
Key takeaways
Frequently asked questions
What is the difference between a chatbot and a virtual assistant?
A chatbot is typically task-specific (customer support, lead capture, FAQ). A virtual assistant (Siri, Alexa) is broader and handles general tasks (weather, timers, smart home). In customer support, the terms are often used interchangeably for AI-powered chat interfaces.
Are chatbots replacing human support agents?
Not replacing — augmenting. AI chatbots handle the 60-80% of repetitive questions that consume agent time, allowing human agents to focus on complex, high-value conversations that require empathy and judgment.
How long does it take to set up an AI chatbot?
On modern platforms like Chatsy, you can deploy a functional AI chatbot in under an hour. Upload your knowledge base content, customize the widget appearance, and embed it on your website. The AI starts answering questions immediately — no coding or training required.
Can chatbots handle multiple conversations at once?
Yes. Unlike human agents who handle 3-5 simultaneous chats, AI chatbots can manage thousands of concurrent conversations with consistent quality and sub-5-second response times. This makes them ideal for handling traffic spikes during product launches or seasonal peaks.