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What is an AI chatbot?

Written by Petr Chmelař | Nov 14, 2025 6:25:30 PM

In this article, you will learn what an AI chatbot is, how it works, and why it represents a more modern and efficient alternative to traditional chatbots today. We will explain the differences between a regular scenario-based chatbot and an AI chatbot based on large language models, look at typical business applications, and show where AI chatbots can save companies time and money. The article is intended for companies in the Czech Republic considering deploying an AI chatbot on their website, e-shop, customer support, or internal processes and wanting to understand how this technology works in practice.

 

 

Introduction

AI chatbot has become one of the fastest-growing tools in modern business communication. While traditional chatbots relied on fixed rules and scenarios, today's AI chatbot can understand natural language, work with documents, analyze information, and respond much more naturally. Companies thus gain a solution that can automate a large part of customer support, internal inquiries, or common information processes without the need for constant human oversight.

Thanks to significant advances in artificial intelligence, AI chatbot is accessible not only to large corporations but also to small and medium-sized businesses. It brings quick return on investment, faster communication, and a better user experience.

 

 

What will you learn in this article?

 

 

 

What is an AI chatbot

An AI chatbot is software powered by large language models that understands natural language and can answer questions as fluently as a human. Unlike traditional chatbots, it is not limited by fixed scenarios but works with the meaning of sentences, context, and knowledge loaded from documents or connected business systems.

An AI chatbot can explain complex topics, find answers in internal guidelines, advise customers on product selection, or handle tasks that would otherwise be done by a human. It thus represents a modern way to automate part of business processes without compromising on answer quality.

 

 

How AI chatbot works

The foundation of an AI chatbot is a language model that understands text similarly to a human. The AI chatbot analyzes the query, determines its intent, and then creates a response based on available data. This data includes company documentation, knowledge base, API integrations, databases, or product information.

Modern AI chatbots work with techniques like RAG (retrieval-augmented generation), where the chatbot first finds relevant information in documents and then uses it to create an accurate answer. Thanks to this, it responds not only intelligently but also correctly according to company data.

If you want to see how an AI chatbot works, you can try it here:

 

Types of chatbots

In practice, you will encounter three main types of chatbots today. Each has its specific use and is suitable for different situations.

Rule-based chatbots

Traditional chatbots based on fixed scenarios and decision trees. Suitable for simple tasks.

NLP chatbots

Chatbots capable of recognizing basic user intent using natural language processing.

AI chatbots

The most advanced chatbots using artificial intelligence, working with documents, data, APIs, and the ability to generate human-like responses. This article focuses primarily on them.

 

 

What AI chatbot is used for

AI chatbot has wide application across companies of all sizes.

Customer support

Instant answers, handling common inquiries, relieving the customer support team.

E-shops

Product recommendations, order status, availability, complaints.

Internal employee support

HR inquiries, onboarding, internal guidelines, IT support.

Data and document queries

AI chatbot can find information in PDFs, guidelines, or databases within seconds.

 

 

Use in practice

AI chatbot helps companies automate repetitive tasks, speed up communication, and improve user experience. Most commonly in practice, it is used for:

Answering FAQs

Automatic processing of large volumes of inquiries 24/7.

Processing inquiries

Collecting details, follow-up questions, sending to CRM or email.

Product or service advisor

Interactive recommendations based on customer preferences, e.g., in e-shops.

Advanced document querying

Searching in manuals, guidelines, workplace safety materials, or technical documentation.

 

 

Benefits of AI chatbots

AI chatbot brings companies several fundamental benefits that have a measurable impact on their costs and efficiency.

  • Reduction of repetitive inquiries by 60–80% within the first month. AI chatbot takes over routine communication that was previously handled by humans, saving tens to hundreds of hours monthly. This applies to customer support, e-shops, HR, and IT support.
  • Instant answers 24/7 without waiting and without stress for customers or employees.
  • Ability to work with documents and internal data, so answers are not only fast but also accurate and consistent.
  • Reduced burden on human support, which can focus only on more complex tasks and thus increase the value of their work.
  • Possibility of connecting to APIs and business systems, thanks to which AI chatbot can handle tasks instead of humans, from generating inquiries to checking availability or finding information in databases.

 

 

Disadvantages and limitations of AI chatbots

AI chatbot needs quality data and a properly configured knowledge base. If quality documents or clear rules are not available, the answer may be less accurate. Some processes also still require human oversight, especially for legal or highly specialized inquiries.

 

 

How much does an AI chatbot cost

The price of an AI chatbot depends on the complexity of integrations, amount of documentation, and scope of required functions. Basic solutions are available for small companies, while advanced systems with connections to internal databases target medium and larger projects.

You can find current prices here: 

 

How to choose the right AI chatbot

When choosing an AI chatbot, it's good to look at two things. First, the AI chatbot solution itself, which determines the scope of knowledge and functions. Second, the operational plan, which determines how many conversations and inquiries your assistant can handle in regular operation.

At Chatbot.Expert, we offer three levels of AI chatbot according to project complexity and required scope:

  • Starter is suitable for smaller companies that want to quickly deploy their first AI assistant. It handles typical inquiries, draws knowledge from the web and basic documents, and is ideal as an entry into the world of AI chatbots.
  • Pro targets growing companies that need a larger scope of knowledge, work with more extensive documentation, and connection to other systems, such as CRM or ticketing. It's suitable where AI chatbot is no longer just an add-on but an important part of customer support.
  • Enterprise is a custom solution for companies that want multiple chatbots, connections to internal systems, deeper integrations, and work with larger amounts of data. Suitable for companies where AI chatbot serves multiple teams or language versions.

In addition to the chatbot itself, you also choose an operational plan according to expected traffic. Light plan covers smaller traffic, Advanced is suitable for regular traffic with higher number of conversations. Expert plan serves established projects with high traffic, and Custom plan is prepared for large companies with individual requirements.

If you're not sure which combination of solution and operational plan is most suitable for you, you can start with a smaller package and gradually increase it according to actual load. Alternatively, you can contact us and we'll go through your specific use scenarios together.

And if you're not sure about choosing a chatbot or operational plan at all, you can simply ask our own AI chatbot, which is available on every page of this website in the bottom right corner. It will advise you on navigating the options and what type of solution makes the most sense in your situation.

 

 

Summary

AI chatbot is a modern tool that brings companies faster communication, lower costs, and significant efficiency gains. It can fulfill the role of assistant, advisor, information finder, and inquiry tool. If you want to find out how an AI chatbot could help directly in your company, check out our demo or you can contact us.

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