A chatbot is software that replies to customer messages automatically, using menus and rules (tap-based options), AI (understanding free-text questions), or both. Businesses use chatbots on WhatsApp, websites and messaging apps to answer FAQs, qualify leads, take bookings and hand complex chats to humans.
Why it matters
- Instant replies, 24/7, without night shifts
- Consistent answers to common questions
- Lower cost: on WhatsApp, each number gets 1,000 free service replies a month (then the utility rate), so bot answers inside the 24-hour window cost little
- Better lead capture: the bot asks qualifying questions and routes hot leads to sales
Rule-based vs AI chatbots
| Rule-based | AI-powered |
|---|---|
| Buttons and menus | Understands typed questions |
| Predictable | Handles messy, varied wording |
| Great for structured journeys | Great for FAQs and the long tail |
Most good bots combine both, plus a "talk to a human" option.
Example
A gym's WhatsApp bot shows buttons for Plans, Free trial and Timings, and the AI answers "is there parking and is Sunday open?" from the gym's FAQ content.