Reference
AI chatbot & AI agent glossary
Plain definitions of the terms used around website AI agents. Neutral and industry-standard, not product descriptions — where a term has a wider meaning than the way we happen to use it, the wider meaning is the one given here.
What is the difference between a chatbot and an AI agent?
A chatbot holds a conversation and produces replies. An AI agent is given a set of tools it may call — recording a lead, opening a ticket, fetching a human — and the surrounding software validates and executes those calls. The difference is not the language model but whether anything is connected to the other end, so an agent completes tasks where a chatbot only describes them.
Agents
AI employee
also: AI website employee- An AI employee is software placed on a website that performs front-of-house work: it answers visitor questions from the business's own content, asks qualifying follow-ups, records the enquiry, and escalates to a person when it cannot help. The distinguishing feature is that it completes tasks rather than only producing replies.
- The practical test is what exists after a conversation ends. A transcript means a chatbot; a recorded lead, a ticket or a notified human means an employee.
- What is an AI employee? →
AI agent
- An AI agent is a system that uses a language model to decide which actions to take toward a goal, rather than only generating text. It is given a set of tools it may call, and the surrounding software validates, authorises and executes each call. Agency comes from the tools, not from the model.
- AI agent vs chatbot →
AI receptionist
- An AI receptionist handles the first contact a visitor has with a business: answering common questions, screening whether the enquiry is worth the team's time, and recording the details. Most operate on a website rather than a phone line, which distinguishes them from a human answering service.
- What an AI receptionist does →
Chatbot
- A chatbot is software that holds a text conversation with a user. The term covers everything from a fixed decision tree to a language model answering freely. In current usage it usually implies a system that replies but does not take action beyond the conversation itself.
How it works
Retrieval-augmented generation (RAG)
also: RAG- Retrieval-augmented generation is a technique where relevant passages are retrieved from a document store and supplied to a language model, which is then instructed to answer only from them. It is the standard way to make a model answer accurately about a specific business rather than from general training data.
Grounding
- Grounding is the practice of restricting a language model to answering from a supplied set of sources, and requiring it to say so when those sources contain nothing relevant. An ungrounded model will produce a plausible answer regardless, which is how chatbots come to quote prices a business does not charge.
- Stop a chatbot inventing answers →
Hallucination
- A hallucination is output that is fluent and confident but not supported by any source. It is not a malfunction: a language model generates plausible continuations, so when it has no relevant information the plausible continuation is an invention. Grounding and an explicit permission to say 'I do not know' are the practical defences.
Embedding
- An embedding is a list of numbers representing the meaning of a piece of text, positioned so that texts with similar meanings sit close together. Storing embeddings of a website's content allows a search for 'do you fix boilers' to retrieve a passage about heating repairs even with no shared words.
Vector search
also: semantic search- Vector search finds documents by comparing embeddings rather than matching keywords, ranking results by distance in meaning. It is what allows a chatbot to answer a question phrased in the visitor's own words when the website uses different terminology entirely.
Tool calling
also: function calling- Tool calling is the mechanism by which a language model requests that a specific function be run, returning a structured call rather than prose. The application decides whether the call is permitted, validates its arguments, executes it, and returns the result. This is what separates an agent from a chatbot.
- What an AI employee can do →
Knowledge base
- A knowledge base is the set of content an AI system is permitted to answer from — typically a website's pages, uploaded documents and manually written question-and-answer pairs. Its coverage sets the ceiling on answer quality, which is why a thin website produces a vague assistant.
- What content a chatbot needs →
Prompt injection
- Prompt injection is an attack where text placed in content the model reads — a crawled web page, an uploaded file, a user message — is written to influence the model's behaviour. It matters most for agents, because a model that can call tools can be pushed toward calling them, so authorisation must be enforced outside the model.
Operating it
Handover
also: escalation, handoff- A handover is the transfer of a conversation from an automated agent to a person. Good practice is to hand over immediately on request, when the knowledge base has nothing relevant, when emotion or money is involved, and when the conversation has stopped progressing.
- When to hand over to a human →
Knowledge gap
- A knowledge gap is a question an assistant could not answer because nothing relevant existed in its knowledge base. Logged systematically, gaps become the most actionable report a chatbot produces: each one names a specific piece of content missing from the website.
Lead qualification
- Lead qualification is establishing whether an enquiry is worth pursuing, and gathering enough detail to act on it. A qualifying question is one whose answer changes what happens next — location, scope, timescale, budget — as opposed to a question that merely collects information.
- Can a chatbot qualify leads? →
Containment rate
also: deflection rate- Containment rate is the share of conversations resolved without a human. It is widely reported and easy to misread, because a visitor who gave up in frustration counts identically to one who was helped. Handover reasons are a more honest measure of whether an assistant is working.
- Chatbot metrics that matter →
Chat widget
also: embed, launcher- A chat widget is the interface a visitor sees on a website: a launcher button and the panel it opens. It is normally added with a single script tag, and it loads in an iframe so the host site's styles and the widget's cannot interfere with each other.
Commercial
Per-resolution pricing
- Per-resolution pricing charges each time an AI resolves a query without human involvement. It aligns cost with delivered value, and it makes spending unpredictable: the bill rises with traffic and with the assistant's own effectiveness, which is uncomfortable for a business that needs to forecast.
- Pricing models explained →
Flat pricing
- Flat pricing charges a fixed monthly fee for a plan with a stated allowance, regardless of how many conversations occur within it. Its advantage is forecastability: a seasonal spike or a successful campaign costs the same as a quiet month.
- SpideyChat pricing →
White label
- White labelling is removing a vendor's branding so the product appears to belong to the business deploying it. For chat widgets this usually means removing a 'powered by' line, and for agencies it can extend to custom domains and sender addresses.
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