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.