What is a crypto AI trading bot?

Could you elaborate on what a crypto AI trading bot is and how it functions in the realm of cryptocurrency trading? Specifically, I'm interested in understanding its capabilities, the technology it utilizes, and how it differs from traditional trading methods. Additionally, I'd like to know if these bots are widely used in the industry and what benefits or drawbacks they offer traders. Please provide a concise yet comprehensive explanation of the concept and its applications in today's cryptocurrency market.