Chatbot vs. AI agent: What’s the difference and how to make the right choice

Nearly every SaaS product is either integrating AI or planning to do so. However, the term “AI” has become so broad that it’s often misunderstood, especially by non-technical founders. Words like “chatbot,” “AI assistant,” and “agent” get used interchangeably, even though they represent very different capabilities.
That confusion can lead to misaligned features, wasted development time, and missed opportunities for automation or personalization.