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AI & automation

AI agents vs chatbots: what does your business actually need?

You want fewer repetitive tasks, not another tool to manage. Before you ask for an AI agent, it helps to be clear about what needs to happen after someone types a question.

The difference is what happens next

A chatbot is a conversational interface. It might answer a question, find a document, or help someone complete a task. An agent describes how a system works behind that interface: it can choose steps and use connected tools to work towards a goal.

They are not opposites. A chatbot can have an agent behind it. And an agent does not need a chat window at all.

A workflow sits between the two ideas. Its steps are decided in advance: receive a request, check a rule, then pass it to the right place. Anthropic’s guide to building agents makes this distinction between fixed workflows and systems that choose their own next steps.

One request, three ways to handle it

Imagine a customer asks, “Where is my order?” This is an example, not a description of a particular client’s system.

Answer a question

A basic assistant explains the delivery policy and shows the tracking link.

Follow a workflow

A connected workflow checks the order number, reads the shipping status, and sends a standard update.

Choose the next step

An agent investigates an unusual delay, checks several systems, and prepares a proposed resolution for a person to approve.

The last option is more flexible. It also needs more careful testing, permissions, and monitoring. If the same predictable steps solve the problem, start there.

Start with a task you can describe

“Put AI in our business” is too broad to test. “Prepare a first draft of a support reply using our help centre” is a useful starting point.

  • Write down the input. What information arrives, and from where?
  • Define a good result. What should the person receive or be able to do?
  • Set a boundary. What must the system never change without approval?
  • Name an owner. Who reviews mistakes and handles exceptions?

For an early version, let the system draft rather than send, recommend rather than purchase, and flag rather than delete. You can expand its permissions after you understand how it behaves.

Test the awkward cases, too

Do not judge the system only by a clean demo. Try incomplete requests, conflicting records, outdated documents, and an unavailable connected service. Check whether it asks for help or confidently makes something up.

Compare it with the current process. Track time spent, useful results, corrections, and operating cost. A faster first draft is not a win if the team spends longer fixing it.

The short answer

Use a chatbot when conversation helps. Use a workflow when the steps are known. Consider an agent when the task genuinely needs flexible decisions—and you can keep those decisions under control.

Sources & further reading

Original guidance from the Auwave team, with these references for context.

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