Microsoft offers various tools for building chatbots, including the Microsoft Bot Framework and Azure Bot as a Service. The Bot Framework allows developers to build bots using Visual Studio and supports bots being published to Azure. It utilizes the Bot Connector to act as a translator between bots and various channels like Skype and Facebook. Bots use dialogs, forms, natural language processing via LUIS, and other features to have conversations. Azure Bot as a Service provides an integrated environment for developing bots in a serverless way using Azure Functions.