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Researched and written by Blue Bowen

AI chatbots are software products that use artificial intelligence, primarily Natural Language Understanding (NLU) and Large Language Models (LLM) to conduct human-like, conversational interactions via text or voice. Unlike scripted or purely rule-based bots, AI chatbots infer user intent, maintain context, and generate or retrieve responses dynamically.

Central to the functioning of AI chatbots is the use of advanced machine learning (ML) models known as LLMs. They use patterns in the data they have been trained on to predict the most appropriate response. The sophistication of these LLMs sets AI chatbots apart from their predecessors, enabling more nuanced understanding and generation of language. It also supports multi-turn reasoning and the use of Retrieval-Augmented Generation (RAG), tool/API calls, structured prompts, or lightweight in-session flows to complete the current request.

Although similar to other automation and productivity solutions, AI chatbots differ in critical ways. As opposed to chatbot software and productivity bots software, AI chatbots are product solutions that can operate independently and/or be embedded via widgets, Software Development Kits (SDKs), or integrations. That being said, some solutions allow for connections and integrations to proprietary business data and systems.

To qualify for inclusion in the AI Chatbot category, a product must: