Digital Lexicon Hub

Software that converses with users through text or voice to answer questions or complete tasks, using scripted rules or AI models.

Chatbots can deflect repetitive support questions and capture leads outside office hours, but users judge the brand by them, so scope, escalation path and accuracy matter as much as cost savings.

An ecommerce store launches a chatbot that answers order status by querying the order API, covers the top 30 help center questions, and opens a live chat ticket with the transcript when the user asks for an agent or the bot fails twice.

Scripted bots fail when users phrase requests unexpectedly, while AI bots can hallucinate answers. Usability research shows users get frustrated by bots that lose context, offer no way to reach a person or never admit they do not understand.

Rule-based chatbots follow decision trees and keyword matching, which suit predictable requests. AI chatbots use Natural Language Processing (NLP) and language models to interpret intent, keep context across turns and generate replies, often grounded in a knowledge base through retrieval. Both types integrate with CRMs, order systems and help desks. AI chatbots are a subset of chatbots, and broader Conversational AI adds voice, actions and deployment across many channels.