The terms "AI chatbot" and "agentic AI" are often used interchangeably, but they represent fundamentally different approaches to artificial intelligence in business.
Traditional AI Chatbots
Chatbots are reactive systems that respond to user queries based on predefined rules or trained patterns.
Characteristics
- Reactive: Wait for user input before responding
- Single-turn: Handle one question at a time
- Rule-based: Follow decision trees or pattern matching
- Limited context: May lose track of conversation history
Best For
- FAQ answers
- Simple customer support
- Lead qualification
- Appointment scheduling
Agentic AI
Agentic AI represents autonomous systems that can plan, reason, and execute multi-step tasks independently.
Characteristics
- Proactive: Can initiate actions without explicit prompts
- Multi-step: Break down complex goals into actionable plans
- Tool-using: Can access APIs, databases, and external systems
- Context-aware: Maintain rich understanding of the full situation
Best For
- Complex customer service workflows
- Automated research and analysis
- Multi-system process automation
- Decision support with real-time data
When to Use Each
| Scenario | Chatbot | Agentic AI |
|---|---|---|
| Simple FAQs | ✅ | Overkill |
| Order processing | ⚠️ Limited | ✅ |
| Multi-system workflows | ❌ | ✅ |
| Cost-sensitive projects | ✅ Lower cost | ⚠️ Higher cost |
Conclusion
Choose chatbots for straightforward, high-volume interactions. Choose agentic AI when you need autonomous problem-solving across multiple systems. Many businesses benefit from a hybrid approach: chatbots for the front line, agentic AI for complex escalations.