Chatbots, leveraging artificial intelligence, are increasingly used in mobile app development across various industries, enhancing user engagement and automating routine tasks. They come in various types including menu/button based, language-based, keyword recognition, machine learning, hybrid, and voice bots, each serving specific functions such as customer support, appointment scheduling, marketing, and entertainment. The benefits of chatbots include cost-effectiveness, personalized user experiences, and the ability to integrate multiple applications into one platform.