What the term chatbot means
The word combines chat, a written conversation, and bot, a program that acts on its own. What makes something a chatbot is how it is used: someone types or speaks, the program replies, and the conversation goes on in turns. Two very different techniques can sit behind it.
An early, well-documented example is ELIZA. Joseph Weizenbaum described it in Communications of the ACM in January 1966. The program looked for keywords in the user's sentence and transformed it with a rule attached to each keyword. If it found none, it replied with a content-free remark. Weizenbaum noted that some people were very hard to convince that ELIZA was not human.
A chatbot built on an LLM works differently. As the LLM entry explains, the model calculates, piece by piece, the most probable continuation of a text. The chatbot is the product around it: the interface, fixed instructions, the conversation history and, sometimes, tools that look up documents before it answers.
How it differs from an AI agent is covered in the AI agent entry. The short criterion: the chatbot answers inside the conversation, while the agent leaves it to complete a task, for example by visiting web pages at that moment.