Chatbase is a platform that allows users to create custom AI chatbots and integrate them into their websites. These chatbots can be enhanced with 'actions,' which are AI agents capable of performing various tasks. For instance, they can collect leads by prompting users to fill out forms, search the web for up-to-date information if the existing knowledge base lacks it, and integrate with tools like Slack and Calendly to book appointments. The video demonstrates how to set up these features, including customizing forms for lead collection and linking the chatbot to Calendly for automatic appointment scheduling. Additionally, the chatbots can perform web searches to provide real-time information and create custom action buttons for specific tasks like directing users to a free trial signup page. The platform supports various data sources for training the chatbot, including PDFs, Word documents, and website content. Users can choose from different AI models like ChatGPT, Google Gemini, or Claude to power their chatbots. The video emphasizes the ease of use and flexibility of Chatbase, making it a powerful tool for enhancing website interactivity and user engagement.