chatbot
What It Means
A chatbot is a software program that simulates human conversation through text or voice interactions. It can answer questions, provide information, and help users complete tasks without requiring human intervention. Modern chatbots use AI to understand context and provide increasingly sophisticated responses.
Why Chief AI Officers Care
Chatbots directly impact customer experience and operational costs, making them a key AI investment area that requires governance oversight. Poor chatbot performance can damage brand reputation and customer relationships, while effective ones can reduce support costs by 30-50%. CAIOs must ensure chatbots are properly trained, monitored for bias, and integrated safely with business systems.
Real-World Example
A bank's customer service chatbot that helps customers check account balances, transfer money, and answer common questions about fees and policies. When a customer types 'What's my balance?', the chatbot accesses secure systems to provide real-time account information, escalating to human agents only for complex issues like dispute resolution.
Common Confusion
People often confuse chatbots with virtual assistants or assume all chatbots use advanced AI. Many chatbots still use simple rule-based systems rather than machine learning, and the term doesn't indicate the level of intelligence or sophistication of the underlying technology.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, chatbots serve as digital health assistants that can triage patients, schedule appointments, provide medi...
Finance: In finance, chatbots serve as customer-facing interfaces for banking services, investment advice, and transaction suppor...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Conversational agent that dialogues with its user (for example: empathic robots available to patients, or automated conversation services in customer relations)."Source: COE_AI_Glossary
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