What Are Chatbots?

By Motley Fool Staff – Updated Aug 7, 2025 at 6:03 PM EST

Key Points

Chatbots use AI to simulate conversations, enhancing customer service efficiency.
Oracle identifies two chatbot types: task-oriented and data-driven/predictive.
Investing in AI tech, like sophisticated chatbots, offers growth opportunities.

Chatbots are computer programs that simulate human conversations by using artificial intelligence to respond to questions and supply relevant information. A growing number of companies are relying on chatbots to streamline and improve their customer service. Read on to find out more about chatbots, including the different types of chatbots and some chatbot innovations.

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