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Quick Definition

A bot is a script or program that performs actions automatically. These are often designed to do menial tasks like monitoring eBay auctions, but their ability to respond with inhuman speed makes them a popular means of cheating in video games.

This also refers to any computer controlled player character in a multiplayer game. In this case, the bot's AI has likely been tweaked to be a reasonable and fair challenge to the players. These types of bots are usually allowed, since they add to the fun rather than ruin it.