Chatbot

AI concepts
About 1 min read

Software that engages in natural language conversations with users via text or voice. Recently, it has evolved beyond simple rule-based responses into intelligent assistants that understand complex context and perform professional tasks by combining Large Language Models (LLMs) and Retrieval-Augmented Generation (RAG) technologies.

Also known as
ChatbotAI ChatbotConversational AIConversational AI

Detailed explanation

A chatbot is a program that understands human language and generates appropriate responses through natural language processing (NLP) technology. While early chatbots were rule-based, following pre-defined scenarios, modern chatbots utilize generative AI to support far more flexible and natural conversations. Especially in enterprise environments, companies implement Retrieval-Augmented Generation (RAG) technology, which connects in real-time with internal documents or external databases, to suppress the chronic AI issue of hallucination and provide highly reliable information. Today's chatbots are expanding beyond simple information delivery to act as 'agents' that make reservations or analyze data through API integrations, and they are innovating user experience with multimodal features that process images and audio alongside text.

Why it matters in tool selection

Chatbots not only reduce customer service costs by up to 30% but also serve as key tools to boost customer satisfaction through 24/7 real-time support. Recently, their value as 'knowledge workers' utilizing a company's internal knowledge has grown beyond simple Q&A capabilities. Therefore, when adopting a chatbot, it is essential to consider security and data integration capabilities beyond basic conversational skills.

Key considerations

  • Does it support Retrieval-Augmented Generation (RAG) technology to prevent hallucination?
  • Can it integrate via API with existing work tools (CRM, ERP, Slack, etc.)?
  • Does it have a security policy that excludes user input data from model training?
  • How long and accurately can it maintain conversational context (memory)?

Use cases

Traditional customer service chatbots (such as Zendesk AI) perform standardized customer responses, while generative chatbots (like ChatGPT and Claude) assist with complex document summarization and creative writing. Search-based chatbots like Perplexity summarize up-to-date web information in real-time, providing sources.

Easily confused terms

Rule-Based Chatbots

Respond only to pre-defined buttons or keywords and cannot answer questions outside of the set scenario.

AI Agents

Unlike chatbots that only converse, they set goals on their own and use various tools to directly execute tasks (e.g., sending emails, processing payments, etc.).

Related terms

LLMRAGAI AgentNLP