Chatbots succeed when a clear understanding of user intent drives development of both the chatbot logic and the end-user interaction. As part of your scoping process, define the intentions of potential users. What goals will they express in their input? For example, will users want to buy an airline ticket, figure out whether a medical procedure is covered by their insurance plan or determine whether they need to bring their computer in for repair?
In a new report from Business Insider Intelligence, we explore the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact. We outline the burgeoning bot ecosystem by segment, look at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer.
Previous generations of chatbots were present on company websites, e.g. Ask Jenn from Alaska Airlines which debuted in 2008 or Expedia's virtual customer service agent which launched in 2011.  The newer generation of chatbots includes IBM Watson-powered "Rocky", introduced in February 2017 by the New York City-based e-commerce company Rare Carat to provide information to prospective diamond buyers. 
To envision the future of chatbots/virtual assistants, we need to take a quick trip down memory lane. Remember Clippy? Love him or hate him, he’s ingrained in our memory as the little assistant who couldn’t (sorry, Clippy.). But someday, this paper clip could be the chosen one. Imagine with me if you will a support agent speaking with a customer over the phone, or even chat support. Clippy could be listening in, reviewing the questions the customer is posing, and proactively providing relevant content to the support agent. Instead of digging around from system to system, good ‘ole Clippy would have their back, saving them the trouble of hunting down relevant information needed for the task at hand.
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.
Chatbots are used in a variety of sectors and built for different purposes. There are retail bots designed to pick and order groceries, weather bots that give you weather forecast of the day or week, and simply friendly bots that just talk to people in need of a friend. The fintech sector also uses chatbots to make consumers’ inquiries and application for financial services easier. A small business lender in Montreal, Thinking Capital, uses a virtual assistant to provide customers with 24/7 assistance through the Facebook Messenger. A small business hoping to get a loan from the company need only answer key qualification questions asked by the bot in order to be deemed eligible to receive up to $300,000 in financing.
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.”
A chatbot (also known as a spy, conversational bot, chatterbot, interactive agent, conversational interface, Conversational AI, talkbot or artificial spy entity) is a computer program or an artificial intelligence which conducts a conversation via auditory or textual methods. 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 chatbots use sophisticated natural language processing systems, but many simpler ones scan for keywords within the input, then pull a reply with the most matching keywords, or the most similar wording pattern, from a database.