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The objective of this study is to explore the potential of a new method for assessing teamwork skills—a virtual high‐fidelity behavioral simulation. In this paper, we describe the development and validation of a chatbot‐driven simulation for assessing teamwork skills of university students. We present the results of a criterion validation study using a sample of 215 undergraduate students. The simulation was found to significantly predict peer ratings following a live team‐based exercise, over and above a teamwork situational judgment test, and a personality inventory. The mean score for women on the simulation was significantly higher than for men. Limitations and future directions are discussed. Practitioner points: Teamwork skills are considered essential, but are difficult to assess well.Advancements in technology provide opportunities for assessing teamwork skills via virtual high‐fidelity behavioural simulations. [ABSTRACT FROM AUTHOR]