2017 was the year that AI and chatbots took off in business, not just in developed nations, but across the whole world. Sage have reported that this global trend is boosting international collaboration between startups across all continents, such as the European Commission-backed Startup Europe Comes to Africa (SEC2A) which was held in November 2017.
The goal of intent-based bots is to solve user queries on a one to one basis. With each question answered it can adapt to the user behavior. The more data the bots receive, the more intelligent they become. Great examples of intent-based bots are Siri, Google Assistant, and Amazon Alexa. The bot has the ability to extract contextual information such as location, and state information like chat history, to suggest appropriate solutions in a specific situation.
Aside from being practical and time-convenient, chatbots guarantee a huge reduction in support costs. According to IBM, the influence of chatbots on CRM is staggering.  They provide a 99 percent improvement rate in response times, therefore, cutting resolution from 38 hours to five minutes. Also, they caused a massive drop in cost per query from $15-$200 (human agents) to $1 (virtual agents). Finally, virtual agents can take up an average of 30,000+ consumers per month.
For example, say you want to purchase a pair of shoes online from Nordstrom. You would have to browse their site and look around until you find the pair you wanted. Then you would add the pair to your cart to go through the motions of checking out. But in the case Nordstrom had a conversational bot, you would simply tell the bot what you’re looking for and get an instant answer. You would be able to search within an interface that actually learns what you like, even when you can’t coherently articulate it. And in the not-so-distant future, we’ll even have similar experiences when we visit the retail stores.
According to this study by Petter Bae Brandtzaeg, “the real buzz about this technology did not start before the spring of 2016. Two reasons for the sudden and renewed interest in chatbots were [number one] massive advances in artificial intelligence (AI) and a major usage shift from online social networksto mobile messaging applications such as Facebook Messenger, Telegram, Slack, Kik, and Viber.”

Simply put, chatbots are computer programs designed to have conversations with human users. Chances are you’ve interacted with one. They answer questions, guide you through a purchase, provide technical support, and can even teach you a new language. You can find them on devices, websites, text messages, and messaging apps—in other words, they’re everywhere.
Perhaps the most important aspect of implementing a chatbot is selecting the right natural language processing (NLP) engine. If the user interacts with the bot through voice, for example, then the chatbot requires a speech recognition engine. Business owners also have to decide whether they want structured or unstructured conversations. Chatbots built for structured conversations are highly scripted, which simplifies programming but restricts the kinds of things that the users can ask.
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A chatbot (also known as a talkbots, chatterbot, Bot, IM bot, interactive agent, or Artificial Conversational Entity) is a computer program or an artificial intelligence which conducts a conversation via auditory or textual methods.[1] Such programs are often designed to convincingly simulate how a human would behave as a conversational partner, thereby passing the Turing test. Chatbots are typically used in dialog systems for various practical purposes including customer service or information acquisition. Some chatterbots use sophisticated natural language processing systems, but many simpler systems scan for keywords within the input, then pull a reply with the most matching keywords, or the most similar wording pattern, from a database.
Many expect Facebook to roll out a bot store of some kind at its annual F8 conference for software developers this week, which means these bots may soon operate inside Messenger, its messaging app. It has already started testing a virtual assistant bot called “M,” but the product is only available for a few people and still primarily powered by humans.
Getting the remaining values (information that user would have provided to bot’s previous questions, bot’s previous action, results of the API call etc.,) is little bit tricky and here is where the dialogue manager component takes over. These feature values will need to be extracted from the training data that the user will define in the form of sample conversations between the user and the bot. These sample conversations should be prepared in such a fashion that they capture most of the possible conversational flows while pretending to be both an user and a bot.
Chatbots are predicted to be progressively present in businesses and will automate tasks that do not require skill-based talents. Companies are getting smarter with touchpoints and customer service now comes in the form of instant messenger, as well as phone calls. IBM recently predicted that 85% of customer service enquiries will be handled by AI as early as 2020.[62] The call centre workers may be particularly at risk from AI.[63]
Chatbots such as ELIZA and PARRY were early attempts at creating programs that could at least temporarily fool a real human being into thinking they were having a conversation with another person. PARRY's effectiveness was benchmarked in the early 1970s using a version of a Turing test; testers only made the correct identification of human vs. chatbot at a level consistent with making a random guess.
There has been a great deal of controversy about the use of bots in an automated trading function. Auction website eBay has been to court in an attempt to suppress a third-party company from using bots to traverse their site looking for bargains; this approach backfired on eBay and attracted the attention of further bots. The United Kingdom-based bet exchange Betfair saw such a large amount of traffic coming from bots that it launched a WebService API aimed at bot programmers, through which it can actively manage bot interactions.

This is the big one. We worked with one particular large publisher (can’t name names unfortunately, but hundreds of thousands of users) in two phases. We initially released a test phase that was sort of a “catch all”. Anyone could message a broad keyword to their bot and start a campaign. Although we had a huge number of users come in, engagement was relatively average (87% open rate and 27.05% click-through rate average over the course of the test). Drop off here was fairly high, about 3.14% of users had unsubscribed by the end of the test.


A chatbot works in a couple of ways: set guidelines and machine learning. A chatbot that functions with a set of guidelines in place is limited in its conversation. It can only respond to a set number of requests and vocabulary, and is only as intelligent as its programming code. An example of a limited bot is an automated banking bot that asks the caller some questions to understand what the caller wants done. The bot would make a command like “Please tell me what I can do for you by saying account balances, account transfer, or bill payment.” If the customer responds with "credit card balance," the bot would not understand the request and would proceed to either repeat the command or transfer the caller to a human assistant.
Improve loyalty: By providing a responsive, efficient experience for customers, employees and partners, a chatbot will improve satisfaction and loyalty. Whether your chatbot answers questions about employees’ corporate benefits or provides answers to technical support questions, users can come away with a strengthened connection to your organization.

Let’s take a weather chat bot as an example to examine the capabilities of Scripted and Structured chatbots. The question “Will it rain on Sunday?” can be easily answered. However, if there is no programming for the question “Will I need an umbrella on Sunday?” then the query will not be understood by the chat bot. This is the common limitation with scripted and structured chatbots. However, in all cases, a conversational bot can only be as intelligent as the programming it has been given.
Another reason is that Facebook, which has 900 million Messenger users, is expected to get into bots. Many see this as a big potential opportunity; where Facebook goes, the rest of the industry often follows. Slack, which lends itself to bot-based services, has also grown dramatically to two million daily users, which bot makers and investors see as a potentially lucrative market.
Note — If the plan is to build the sample conversations from the scratch, then one recommended way is to use an approach called interactive learning. We will not go into the details of the interactive learning here, but to put it in simple terms and as the name suggests, it is a user interface application that will prompt the user to input the user request and then the dialogue manager model will come up with its top choices for predicting the best next_action, prompting the user again to confirm on its priority of learned choices. The model uses this feedback to refine its predictions for next time (This is like a reinforcement learning technique wherein the model is rewarded for its correct predictions).
There are different approaches and tools that you can use to develop a chatbot. Depending on the use case you want to address, some chatbot technologies are more appropriate than others. In order to achieve the desired results, the combination of different AI forms such as natural language processing, machine learning and semantic understanding may be the best option.
Before you even write a single line of code, it's important to write a functional specification so the development team has a clear idea of what the bot is expected to do. The specification should include a reasonably comprehensive list of user inputs and expected bot responses in various knowledge domains. This living document will be an invaluable guide for developing and testing your bot.
What began as a televised ad campaign eventually became a fully interactive chatbot developed for PG Tips’ parent company, Unilever (which also happens to own an alarming number of the most commonly known household brands) by London-based agency Ubisend, which specializes in developing bespoke chatbot applications for brands. The aim of the bot was to not only raise brand awareness for PG Tips tea, but also to raise funds for Red Nose Day through the 1 Million Laughs campaign.

Through our preview journey in the past two years, we have learned a lot from interacting with thousands of customers undergoing digital transformation. We highlighted some of our customer stories (such as UPS, Equadex, and more) in our general availability announcement. This post covers conversational AI in a nutshell using Azure Bot Service and LUIS, what we’ve learned so far, and dive into the new capabilities. We will also show how easy it is to get started in building a conversational bot with natural language.
In other words, bots solve the thing we loathed about apps in the first place. You don't have to download something you'll never use again. It's been said most people stick to five apps. Those holy grail spots? They're increasingly being claimed by messaging apps. Today, messaging apps have over 5 billion monthly active users, and for the first time, people are using them more than social networks.

How: instead of asking someone to fill out a form on your website to be contacted by your sales team, you direct them straight into Messenger, where you can ask them some of their contact details and any qualification questions (for example, "How many employees does your company have?"). Depending on what they respond with you could ask if they'd like to arrange a meeting with a salesperson right there and then.
Conversational bots “live” online and give customers a familiar experience, similar to engaging an employee or a live agent, and they can offer that experience in higher volumes. Conversational bots offer scaling—or the capability to perform equally well under an expanding workload—in ways that human can’t, assisting businesses to reach customers in a way they couldn’t before. For one, businesses have created 24/7/365 online presence through conversational bots.
Some brands already seem to be getting the balance right. A bot needs to capture a user's attention quickly and display a healthy curiosity about their new acquaintance, but too much curiosity can easily push them into creepy territory and turn people off. They have to display more than a basic knowledge of human conversational patterns, but they can't claim to be an actual human -- again, let's keep things from getting too creepy here.

However, the revelations didn’t stop there. The researchers also learned that the bots had become remarkably sophisticated negotiators in a short period of time, with one bot even attempting to mislead a researcher by demonstrating interest in a particular item so it could gain crucial negotiating leverage at a later stage by willingly “sacrificing” the item in which it had feigned interest, indicating a remarkable level of premeditation and strategic “thinking.”

Your first question is how much of it does she want? 1 litre? 500ml? 200? She tells you she wants a 1 litre Tropicana 100% Orange Juice. Now you know that regular Tropicana is easily available, but 100% is hard to come by, so you call up a few stores beforehand to see where it’s available. You find one store that’s pretty close by, so you go back to your mother and tell her you found what she wanted. It’s $3 and after asking her for the money, you go on your way.

What if you’re creating a bot for a major online clothing retailer? For starters, the bot will require a greeting (“How can I help you?”) as well as a process for saying its goodbyes. In between, the bot needs to respond to inputs, which could range from shopping inquiries to questions about shipping rates or return policies, and the bot must possess a script for fielding questions it doesn’t understand.


From any point in the conversation, the bot needs to know where to go next. If a user writes, “I’m looking for new pants,” the bot might ask, “For a man or woman?” The user may type, “For a woman.” Does the bot then ask about size, style, brand, or color? What if one of those modifiers was already specified in the query? The possibilities are endless, and every one of them has to be mapped with rules.
Users want to ask questions in their own language, and have bots help them. A statement that sounds as straight-forward as “My login isn’t working! I haven’t been able to log into your on-line billing system” might sound straight forward to us, but to a bot, there’s a lot it needs to understand. Watson Conversation Services has learned from Wikipedia, and along with its deep learning techniques, it’s able to work out what the user is asking.
The plugin aspect to Chatfuel is one of the real bonuses. You can link up to all sorts of different services to add richer content to the conversations that you're having. This includes linking up to Twitter, Instagram and YouTube, as well as being able to request that the user share their location, serve video and audio content, and build out custom attributes that can be used to segment users based on their inputs. This last part is a killer feature.
Earlier, I made a rather lazy joke with a reference to the Terminator movie franchise, in which an artificial intelligence system known as Skynet becomes self-aware and identifies the human race as the greatest threat to its own survival, triggering a global nuclear war by preemptively launching the missiles under its command at cities around the world. (If by some miracle you haven’t seen any of the Terminator movies, the first two are excellent but I’d strongly advise steering clear of later entries in the franchise.)

Customer service departments in all industries are increasing their use of chatbots, and we will see usage rise even higher in the next year as companies continue to pilot or launch their own versions of the rule-based digital assistant. What are chatbots? Forrester defines them as autonomous applications that help users complete tasks through conversation.   […]
The bottom line is that chatbots have completely transformed the way companies interact with their consumers. And guess what? This is just the very beginning. And the truth is that even though to some company leaders it may seem challenging to incorporate the omnichannel customer experience, it opens up a fantastic opportunity that allows businesses to engage with customers in a fresh, modern way. The outcome of this may prove to be an excellent opportunity to build more meaningful and long-lasting relationships with the customers.
There are various search engines for bots, such as Chatbottle, Botlist and Thereisabotforthat, for example, helping developers to inform users about the launch of new talkbots. These sites also provide a ranking of bots by various parameters: the number of votes, user statistics, platforms, categories (travel, productivity, social interaction, e-commerce, entertainment, news, etc.). They feature more than three and a half thousand bots for Facebook Messenger, Slack, Skype and Kik.
Getting the remaining values (information that user would have provided to bot’s previous questions, bot’s previous action, results of the API call etc.,) is little bit tricky and here is where the dialogue manager component takes over. These feature values will need to be extracted from the training data that the user will define in the form of sample conversations between the user and the bot. These sample conversations should be prepared in such a fashion that they capture most of the possible conversational flows while pretending to be both an user and a bot.
Most chatbots try to mimic human interactions, which can frustrate users when a misunderstanding arises. Watson Assistant is more. It knows when to search for an answer from a knowledge base, when to ask for clarity, and when to direct you to a human. Watson Assistant can run on any cloud – allowing businesses to bring AI to their data and apps wherever they are.
Expecting your customer care team to be able to answer every single inquiry on your social media profiles is not only unrealistic, but also extremely time-consuming, and therefore, expensive. With a chatbot, you're making yourself available to consumers 24 hours a day, seven days a week. Aside from saving you money, chatbots will help you keep your social media presence fresh and active.
I would like to extend an invitation to business leaders facing similar challenges to IoT Exchange in Sydney on 23-24 July 2019. It’s a great opportunity to engage in stimulating discussions with IBM staff, business partners and customers, and to network with your peers. You’ll participate in two full days of learning about new technologies through 40 information packed sessions. ...read more
These are hardly ideas of Hollywood’s science fiction. Even when the Starbucks bot can sound like Scarlett Johansson’s Samantha, the public will be unimpressed — we would prefer a real human interaction. Yet the public won’t have a choice; efficient task-oriented dialog agents will be the automatic vending machines and airport check-in kiosks of the near future.
Screenless conversations are expected to dominate even more as internet connectivity and social media is poised to expand. From the era of Eliza to Alice to today’s conversational bots, we have come a long way. Conversational bots are changing the way businesses and programs interact with us. They have simplified many aspects of device use and the daily grind, and made interactions between customers and businesses more efficient.
Once your bot is running in production, you will need a DevOps team to keep it that way. Continually monitor the system to ensure the bot operates at peak performance. Use the logs sent to Application Insights or Cosmos DB to create monitoring dashboards, either using Application Insights itself, Power BI, or a custom web app dashboard. Send alerts to the DevOps team if critical errors occur or performance falls below an acceptable threshold.
Earlier, I made a rather lazy joke with a reference to the Terminator movie franchise, in which an artificial intelligence system known as Skynet becomes self-aware and identifies the human race as the greatest threat to its own survival, triggering a global nuclear war by preemptively launching the missiles under its command at cities around the world. (If by some miracle you haven’t seen any of the Terminator movies, the first two are excellent but I’d strongly advise steering clear of later entries in the franchise.)

Your first question is how much of it does she want? 1 litre? 500ml? 200? She tells you she wants a 1 litre Tropicana 100% Orange Juice. Now you know that regular Tropicana is easily available, but 100% is hard to come by, so you call up a few stores beforehand to see where it’s available. You find one store that’s pretty close by, so you go back to your mother and tell her you found what she wanted. It’s $3 and after asking her for the money, you go on your way.
[In] artificial intelligence ... machines are made to behave in wondrous ways, often sufficient to dazzle even the most experienced observer. But once a particular program is unmasked, once its inner workings are explained ... its magic crumbles away; it stands revealed as a mere collection of procedures ... The observer says to himself "I could have written that". With that thought he moves the program in question from the shelf marked "intelligent", to that reserved for curios ... The object of this paper is to cause just such a re-evaluation of the program about to be "explained". Few programs ever needed it more.
Tay was built to learn the way millennials converse on Twitter, with the aim of being able to hold a conversation on the platform. In Microsoft’s words: “Tay has been built by mining relevant public data and by using AI and editorial developed by a staff including improvisational comedians. Public data that’s been anonymised is Tay’s primary data source. That data has been modelled, cleaned and filtered by the team developing Tay.”
Chatbots have been used in instant messaging (IM) applications and online interactive games for many years but have recently segued into business-to-consumer (B2C) and business-to-business (B2B) sales and services. Chatbots can be added to a buddy list or provide a single game player with an entity to interact with while awaiting other "live" players. If the bot is sophisticated enough to pass the Turing test, the person may not even know they are interacting with a computer program.
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