Rule-based bots follow a script: keywords and menus, often built with interactive buttons and lists, route the customer through predefined paths. They are predictable and cheap to run, but they break the moment a question falls outside the script.
AI bots use language models to understand intent in free text, answer from a knowledge base or product data, and hand over to a human when confidence drops. The best setups combine both: structure where it helps, AI where questions are open.
On the business side, a chatbot runs on the API, receives messages through webhooks, and answers inside the 24-hour service window. Typical jobs are FAQ, order status, product guidance, and lead qualification before a human takes over.