What is an AI Chatbot?

An AI chatbot is a software application that uses large language models (LLMs) to have natural conversations with users in text or voice. Unlike older rule-based chatbots that match keywords, AI chatbots understand context, follow multi-turn conversations, and generate human-like responses tailored to the user's specific question.

How AI Chatbots Work

An AI chatbot sends user messages to a large language model (such as GPT-4, Claude, or Gemini) along with context about the business — including a knowledge base, product information, or website content. The LLM generates a response that the chatbot displays back to the user. Modern AI chatbots often use a technique called retrieval-augmented generation (RAG), which retrieves relevant facts from a knowledge base and injects them into the prompt to keep answers accurate.

AI Chatbot vs Rule-Based Chatbot

Common AI Chatbot Use Cases

What's Included in a White-Label AI Chatbot

White-Label AI Chatbot Reseller Programs

A white-label AI chatbot reseller program lets agencies and entrepreneurs offer branded AI chatbot tools to their clients without building the underlying technology. The reseller picks pricing, brands the dashboard and widget, and the upstream provider handles LLM costs, hosting, and updates.

How to Launch an AI Chatbot Business

ResellPortal offers a white-label AI Chat Bot product as part of its 19-tool AI Business Suite. Setup takes minutes. The chatbot trains on customer websites and documents and can be embedded on any site under the reseller’s brand. Pricing starts at $29/month.

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