Definition: Chatbot

What is a chatbot?

A chatbot is a computer programme designed to have natural text or voice conversations with humans, just as you would chat with a friend or a customer service representative.

Chatbots are often used as virtual assistants and can communicate via popular messaging apps, websites, smart speakers and more. They can be programmed to focus on specific functions, such as answering general questions, providing customer support or assisting with purchases. Many companies use chatbots as a convenient way for people to get quick help with various use cases, e.g. to receive notifications, participate in surveys, check offers or simply have a chat. Advanced chatbots are able to have longer dialogues, similar to a real conversation.

Under the bonnet, chatbots use artificial learning to understand language and respond in a human-like way. The more they interact over time, the better and more helpful their responses become. Since chatbots never get tired, they are available around the clock, no matter where a human is. But as intelligent as chatbots may be, they are not perfect. Hallucinations, where the chatbot generates content that is unclear, incorrect or inconsistent with the conversation, can still occur and cause problems.

For example, in 2022, a customer reached out to Air Canada's chatbot to inquire about bereavement fare eligibility and refund policies. However, the chatbot gave him the wrong information that he could get a refund after booking, which led him to buy a full-fare ticket. This led to a court case against Air Canada, which was eventually decided in the customer's favour, obliging the airline to compensate him financially. This emphasises the responsibility of companies to ensure that all digital content, including that provided by chatbots, is accurate and does not mislead consumers.