Natural Language Processing (NLP) and Large Language Model (LLM) chatbots are powerful AI technologies, but they serve different purposes. While NLP chatbots excel at predictable, rule-based tasks, LLM chatbots are better suited for complex, open-ended conversations that require deep contextual understanding. This article clarifies the key differences in their architecture, performance, and cost to help you choose the most suitable conversational AI strategy, including the increasingly popular hybrid approach.