Excellent question. While both interact through conversation, their capabilities are fundamentally different. Think of a chatbot as a helpful FAQ page – it can answer common questions using pre-written scripts but operates within a strict, limited framework. It follows rules but can't learn, reason, or act on its own. An AI Agent, however, is like a skilled digital employee. It doesn't just respond with information; it reasons and acts. Using advanced AI, it can understand context, make decisions, learn from interactions, and execute complex tasks across your software systems—like autonomously qualifying a lead, processing a refund, or analyzing a report. In short: Chatbots answer questions. AI Agents solve problems.