Machine learning models are first trained on huge datasets of sample conversations and language inputs/outputs. Over many versions, the models improve at accurately mapping new inputs (what people say) to the appropriate responses.
Once trained, machine learning allows chatbots to dynamically understand and respond to user inputs based on learned patterns and context, rather than just following fixed rules.
The responses can factor in conversation history, user preferences, and other variables to sound more in tune with context and more natural overall.
With more data over time, they continue adapting and become more accurate through incremental learning.
Yet, since machine learning models can produce biases — human oversight remains very important.