What each term actually means
Live chat is a human on the other end
Live chat is a channel, not a technology. A visitor types, a person reads it and types back. Everything that makes a conversation useful comes from the human: judgement about what the visitor actually needs, willingness to answer a question that was not anticipated, and the ability to make a commitment on the spot.
A chatbot is software answering on your behalf
A chatbot replies without a person present. Older ones follow a decision tree of buttons and keywords; newer ones generate answers from a knowledge base. Either way it is bounded by what it was given. Its strengths are availability at any hour, identical answers every time, and handling many conversations at once.
