A chatbot is a program that holds a conversation with people through text or voice, usually on a website, in an app or in a messaging channel. It answers questions, guides users through simple tasks and can hand over to a human when needed.
Older chatbots follow rules and decision trees, offering set buttons and matching keywords to prepared replies. Newer ones use natural language processing or large language models to interpret free-form questions and generate responses. The most useful versions are connected to business data and systems, for instance an order lookup, store hours or a product catalogue, rather than relying on general knowledge alone.
Retailers use chatbots to answer delivery, returns and stock questions, recommend products and capture leads outside business hours. Hospitality venues use them for bookings, menus and opening times. Internally, they can help staff find procedures or policy information.
Common pitfalls include launching a bot that cannot say I do not know, leaving customers stuck with no route to a person, and feeding it outdated information. Generative bots can invent plausible but incorrect answers, so they should be grounded in approved content and tested thoroughly. Customers should be told they are talking to a bot, and personal information collected in chats must be handled in line with the Privacy Act.
Chatbots matter because they offer instant responses at any time and reduce repetitive enquiries for staff. A well-designed one improves service, while a poor one frustrates customers, so scope and escalation design are important.