Business & Applications
Chatbot
A conversational AI interface designed to interact with users in natural language.
Definition
A chatbot is a software application that conducts text or voice conversations with users. Early chatbots followed rigid rule trees; modern AI-powered chatbots use LLMs to understand natural language and generate contextually appropriate responses. They are widely deployed for customer service, lead qualification, appointment booking, and internal knowledge lookup. LLM-based chatbots are more flexible than rule-based systems but require careful design and monitoring to avoid harmful or off-brand responses.
Why this matters for your business
A well-deployed AI chatbot can handle 60–80% of routine customer enquiries without human intervention, freeing staff for complex and high-value interactions. The critical success factors are clear scope definition, quality training data, and regular monitoring.
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Disclaimer
This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.
Document reference: ISO_webpage_knowledge-base_glossary_v1
Last modified: 29 March 2026