Thanks to the rise of ChatGPT, Gemini and Claude, we’re surrounded by artificial intelligence chatbots, software tools that mimic human conversation. You’ve probably chatted with a customer service bot while shopping online or asked a virtual assistant to set a reminder. AI chatbots are embedded in apps, websites and smart devices, helping you complete tasks faster and more efficiently, with 24/7 support for everything from online shopping to booking flights.
But they’re not just for practical uses. Some chatbots are designed purely for entertainment or companionship. For instance, Replika creates a virtual friend experience, and chatbots like ChatGPT are often used for casual conversation (as well as creative brainstorming and coding help).
AI chatbots have also found a place in the office. Tools like Microsoft’s Copilot integrate with work platforms, streamlining tasks like drafting emails or summarizing long documents.
About 35% of people in the US have used an AI chatbot instead of a search engine to answer a question, according to a 2023 survey, and another 35% have turned to an AI chatbot for an explanation of something. A 2024 study showed 56% of US teens and 55% of parents using AI-powered search engines, while half of teens and 38% of parents used chatbots. Another study found that 17% of respondents said chatbot-style results helped them find answers more quickly.
And further stats show impressive growth. ChatGPT is more popular than ever and logged 3.9 billion visits in November 2024, doubling its traffic from the year before. The AI chatbots category, with a 252% growth rate, is the second fastest-growing category in artificial intelligence, just behind AI image generators, according to some stats.
Perhaps we’ve gotten a tad too accustomed to outsourcing our intelligence to these bots. Still, they’re undeniably simplifying our routines and workflows in an unprecedented way.
Not all chatbots are the same
“Chatbot” is often used as an umbrella term to describe any software capable of simulating a conversation with a human. Early chatbots functioned like basic FAQ systems, offering prewritten answers to simple, expected questions. They couldn’t handle natural language, forcing users to rely on specific keywords or phrases. And they’d be stumped by anything outside their programming, like complex or unexpected questions.
Over time chatbots evolved, with improved algorithms. Conversational AI chatbots started using technologies like natural language processing and machine learning to engage in adaptive, context-aware dialogues.
Today, generative AI chatbots produce humanlike responses, making interactions feel natural and intuitive. The biggest leap forward for AI chatbots has been their ability to “understand” context.
For example, if you type, “What’s the weather like?” in a rule-based chatbot, it might respond with, “I don’t understand.” But an AI chatbot can understand your query, identify your location (if permissions allow) and provide the weather forecast. It can even suggest leaving early for an appointment if bad weather could cause traffic delays. This ability to interpret and respond contextually is what sets AI chatbots apart.
How AI chatbots work
To function, AI chatbots rely on various algorithms, machine learning and lots of data. They’re powered by large language models, or LLMs, like Perplexity, OpenAI’s GPT-4, Google’s Gemini and Anthropic’s Claude, and they can engage in longer, more complex discussions; provide personalized recommendations; and even solve problems on the fly. These models are trained on massive amounts of data from books, articles and online conversations and use this training to generate coherent, contextually relevant responses.
When you ask a chatbot for something by typing or speaking, that’s called a prompt. The quality of your prompt will result in the quality of output. The chatbot breaks down your input into smaller parts, analyzes the meaning and generates a response based on patterns learned during training.
LLMs allow chatbots to understand nuanced language, handle follow-up questions and even infer meaning from vague or incomplete prompts.
AI chatbots don’t just follow a rigid set of instructions; they “learn” from patterns and user inputs. Instead of answering a single question, they can maintain the flow of a conversation, remember details from earlier conversations and adapt their tone or detail level based on your input.
Modern AI chatbots also use natural language understanding to grasp open-ended queries, overcoming typos and language issues and factoring in context.
Popular uses for AI chatbots
AI chatbots have found a home in almost every industry. Businesses use them to streamline customer service, with some studies showing gen AI chatbots resolving 75% of customer interactions. They also reduce staff workloads and enhance user experience.
Retail companies rely on chatbots to answer customers’ frequently asked questions; personalize recommendations based on browsing behavior; and help customers track orders and find products. Banks integrate them to answer questions about account balances or transaction histories. In health care, AI chatbots assist patients with appointment scheduling and symptom checks. In education, they’re helping students with tutoring and homework assistance.
Beyond business, AI chatbots are becoming tools for personal productivity. Virtual assistants such as Siri and Alexa now use AI chatbot technology to offer smarter, more nuanced interactions. They can send messages, schedule appointments and even tell you a joke.
As these systems evolve, their potential applications will become even wider.
The benefits and limitations of AI chatbots
AI chatbots are definitely useful. They save time, automate repetitive tasks and make accessing information more convenient. If you’ve ever resolved a billing issue late at night or gotten quick answers without waiting on hold, you’ve experienced their efficiency.
Still, they’re far from perfect. Though chatbots are getting better at understanding context, they still struggle with highly complex or emotionally sensitive situations. A chatbot might misinterpret a sarcastic comment or fail to provide the empathy a human would offer in a customer service scenario.
Privacy is another concern, since chatbots process and sometimes store user data. Though reputable companies have safeguards in place, you should always be cautious about sharing sensitive information, because of the risk of data breaches.
Bias and hallucinations are other major issues AI chatbots face. Who can forget about the infamous Google AI Overviews flop that suggested users put glue in pizza and eat rocks? Or when Google’s Gemini depicted Nazis as people of color?
The future of AI chatbots
AI chatbots are evolving rapidly, and their capabilities are only expected to grow. Features like multimodal functionality, which lets chatbots process text, images and audio, are already making them more versatile. OpenAI, for instance, has introduced voice interactions in ChatGPT, bringing it closer to a fully conversational assistant.
Such advances will bring us closer to a future where talking to AI could feel as natural as chatting with a friend. And that’s where things get even more interesting. Generative AI companies have started leaning in to a phenomenon called anthropomorphism (giving humanlike traits to nonhuman things, like, for instance, computers).
These companies are essentially giving chatbots personalities, branding them as “assistants” or “companions.” One example is Meta AI partnering with celebrities to lend their voices to AI assistants. The goal? Make those assistants feel less artificial and more like helpful partners ready to assist you. (Hopefully, though, humans won’t go so far as to develop romances with chatbots, as in the movie Her with Scarlett Johannson.)
By combining speed, adaptability, and a growing understanding of human conversation, AI chatbots offer a glimpse into the future of user-friendly tech. In the coming years, chatbots will likely become smarter, more personalized and more attuned to individual needs.
Check out CNET’s picks for the best AI chatbots of 2024.
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