A Chatbot is a computer program designed to engage in text or voice-based conversations with customers or users, providing information, assistance, or automated interactions to support various business tasks and customer service.
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Last Updated: February 26, 2026
The definition of a chatbot is a computer program or application that is designed to interact with users, typically over the internet. A chatbot’s definition includes artificial intelligence. Chatbots mimic human interaction, but they’re actually just computer programs.
A chatbot may engage with users to answer product questions or direct users to information. Thus, a chatbot’s business definition is to engage with customers online at any hour of the day. This is particularly useful to businesses that can’t pay customer service representatives to work 24/7.
A chatbot’s purpose is to assist users through a computer program. Chatbots can be embedded on websites as pop-up boxes that answer basic questions. The chatbot may also ask the user to type in a question or direct them to click on a listed topic for more information. If someone asks a question that the chatbot doesn’t recognize, it may redirect the user to a human representative.
Some types of chatbots engage verbally with a human. A human can ask a chatbot a question, and the chatbot will reply out loud. A tablet, smartphone, or computer may have these types of chatbots for oral interaction.
One of the benefits of a chatbot is that it can engage with a user at any time of the day or night. A chatbot is basically like a 24/7 customer service representative. A business owner can use a chatbot on their website to help customers answer common questions when no human is available. This can save a business owner in customer service costs and can help facilitate sales at any hour of the day.
One of the disadvantages of a chatbot is that its abilities are limited. A chatbot, even a well-programmed one, isn’t a complete replacement for human interaction. For example, suppose a user has a question specific to their circumstances, and the chatbot’s programming is too generic to answer it. A chatbot, by definition, is a computer program whose programming limits its responses. Thus, chatbots typically can’t respond to complex questions requiring a decision. A human conversation can discuss details and answer questions outside the chatbot’s scope.
Perhaps the chatbot doesn’t understand the way a user formulates their questions. If a business relies on a chatbot as its front line of customer service, a chatbot may frustrate a customer who feels they can’t adequately explain their question. A human conversation, however, can clear up misunderstandings more easily. The customer may also feel they have to jump through hoops to speak to a human. Some customers also prefer to speak with a human, even if the chatbot is easy to use.
A chatbot may also be called a “chatterbot,” “bot,” “talkbot,” or “IM bot.” A business website may refer to its chatbot as a “virtual assistant.” Some even give their chatbot a branded name.
Most people encounter chatbots daily without realizing it. For example, many people use Amazon’s Alexa or Apple’s Siri every day. Banking websites might use a messaging-type chatbot that pops up whenever someone logs in. A phone company might use a chatbot to respond when someone texts the helpline. Even the U.S. Department of Education’s federal student aid website uses a virtual assistant.
A chatbot is a computer program that interacts with users via messaging or verbally. A chatbot replicates human interaction and is a form of artificial intelligence.
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Chatbots can be valuable tools for small business owners, but setting one up requires a website. ZenBusiness can help entrepreneurs build a helpful business website. Or if an entrepreneur still needs to get their company started, ZenBusiness offers business formation services that streamline the process of starting a limited liability company or corporation.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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