Short answer

An AI chatbot mainly answers questions or chats with users. An AI agent can take actions, use tools, trigger workflows, retrieve data, update systems, and complete multi-step tasks. Many businesses start with chatbots before moving to agents.

What a chatbot is good for

Chatbots are useful for customer FAQs, website support, internal knowledge search, onboarding help, and basic lead qualification.

What an agent can do

AI agents can support more complex workflows such as updating CRM records, preparing reports, routing tickets, drafting proposals, checking documents, or coordinating several tools with human oversight.

What businesses should consider

• What systems should the AI access?

• What actions are safe to automate?

• Where should humans approve the output?

• How will the workflow be monitored?

Takeaway

Start with the job to be done. If the AI only needs to answer, build a chatbot. If it needs to use tools and complete workflow steps, design an agent.