AI Chatbot Glossary

5 terms defined with operator-level context — not marketing copy. Channel terms first, then AI/NLP, then billing and compliance.

D E P R W

D

Ops & Billing

Deflection Rate

The percentage of incoming support conversations the AI chatbot resolves without human agent involvement. The primary KPI for AI chatbot ROI. Industry benchmark: 40â€“65% for well-configured deployments.

E

Compliance & Legal

EU AI Act — Limited-Risk Classification

The EU AI Act classification for customer-service chatbots (Regulation EU 2024/1689). Limited-risk AI systems must inform users they are interacting with AI at first contact. Mandatory from August 2, 2026.

P

Ops & Billing

Per-Resolution Pricing

A billing model where you pay per AI-resolved ticket rather than per seat or per conversation. Popularised by Intercom Fin at $0.99/resolution. High risk of invoice shock at scale.

R

AI & NLP

RAG (Retrieval-Augmented Generation)

The dominant 2024+ pattern for grounding AI chatbot responses in your actual business data. Retrieves relevant document chunks from a vector store, passes them into the LLM's context window, reducing hallucination.

W

Channel & Messaging

WABA (WhatsApp Business API)

The official Meta interface that allows chatbot platforms to send and receive WhatsApp messages at scale. Controls verification, rate limits, the 24-hour messaging window, and per-conversation billing.

Missing a term? The full 60-term taxonomy covers channel terms (18), AI/NLP terms (20), and ops/billing/compliance terms (22). We publish new entries weekly. Use the wizard instead →