Chatbots improve customer interaction on websites by providing instant responses and 24/7 support, enhancing the overall user experience. They can handle frequently asked questions, assist with product recommendations, and even facilitate transactions, effectively reducing the workload on human staff. By utilizing natural language processing (NLP) and machine learning, chatbots learn from interactions, enabling them to deliver more personalized and relevant answers over time. This not only increases customer satisfaction but also boosts engagement and helps in collecting valuable feedback for businesses.