Understanding Chatbots and Conversational AI

Abstract

Conversational AI, including chatbots and virtual assistants, has rapidly advanced with the rise of large language models (LLMs). This survey examines the historical evolution of chatbots from rule-based systems to retrieval-based and generative AI models, while dissecting key components such as NLU, dialogue management, and NLG. It also covers major applications in customer service, healthcare, and education, as well as the ethical and societal implications of AI-driven dialogue systems. Challenges such as bias, hallucination, privacy concerns, and job displacement are discussed along with future directions in this evolving field.