Conversational AI is a type of Artificial Intelligence that deals with understanding natural human language and conversing with customers. Chatbots vary in capabilities, but typically the term refers to pre-AI chatbots that were fixed to a single interface like webchat and could only work with pre-defined responses.
A new era of AI-powered chatbots is now upon us, but the chatbot term is perhaps too limiting to describe the flexibility, utility, and personalization offered by AI.