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.
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.
For each kind of question, a unique pattern must be available in the database to provide a suitable response. With lots of combination on patterns, it creates a hierarchical structure. We use algorithms to reduce the classifiers and generate the more manageable structure. Computer scientists call it a “Reductionist” approach- in order to give a simplified solution, it reduces the problem.
Shane Mac, CEO of San Francisco-based Assist,warned from challenges businesses face when trying to implement chatbots into their support teams: “Beware though, bots have the illusion of simplicity on the front end but there are many hurdles to overcome to create a great experience. So much work to be done. Analytics, flow optimization, keeping up with ever changing platforms that have no standard.
The chatbot is trained to translate the input data into a desired output value. When given this data, it analyzes and forms context to point to the relevant data to react to spoken or written prompts. Looking into deep learning within AI, the machine discovers new patterns in the data without any prior information or training, then extracts and stores the pattern.
The front-end app you develop will interact with an AI application. That AI application—usually a hosted service—is the component that interprets user data, directs the flow of the conversation and gathers the information needed for responses. You can then implement the business logic and any other components needed to enable conversations and deliver results.
“I believe the dreamers come first, and the builders come second. A lot of the dreamers are science fiction authors, they’re artists…They invent these ideas, and they get catalogued as impossible. And we find out later, well, maybe it’s not impossible. Things that seem impossible if we work them the right way for long enough, sometimes for multiple generations, they become possible.”
User message. Once authenticated, the user sends a message to the bot. The bot reads the message and routes it to a natural language understanding service such as LUIS. This step gets the intents (what the user wants to do) and entities (what things the user is interested in). The bot then builds a query that it passes to a service that serves information, such as Azure Search for document retrieval, QnA Maker for FAQs, or a custom knowledge base. The bot uses these results to construct a response. To give the best result for a given query, the bot might make several back-and-forth calls to these remote services.
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.
While messaging and voice interfaces are central components, they fit into a larger picture of increasing infusion of technology into our daily lives, which in turn is unlocking new potential for brand-to-consumer interaction. The fact is, technology overall is becoming more deeply woven into our lives, and the entire ecosystem is enjoying tighter cohesion through the increasing availability and sophistication of APIs. Smart companies are finding new and innovative touch points with consumers that are contextual, relevant, highly personal, and yes, conversational. Commerce is becoming not only more conversational but more ubiquitous and seamlessly integrated into our lives, and the way we interact with brands will be forever changed as a result.
Indeed, this is one of the key benefits of chatbots – providing a 24/7/365 presence that can give prospects and customers access to information no matter when they need it. This, in turn, can result in cost-savings for companies that deploy chatbots, as they cut down on the labour-hours that would be required for staff to manage a direct messaging service every hour of the week.

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.

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.


Say you want to build a bot that tells the current temperature. The dialog for the bot only needs coding to recognize and report the requested location and temperature. To do this, the bot needs to pull data from the API of the local weather service, based on the user’s location, and to send that data back to the user—basically, a few lines of templatable code and you’re done.
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.
If AI struggles with fourth-grade science question answering, should AI be expected to hold an adult-level, open-ended chit-chat about politics, entertainment, and weather? It is thus encouraging to see that Microsoft’s Satya Nadella did not give up on Tay after its debacle, and Amazon’s Jeff Bezos is sponsoring an Alexa social chatbot competition. I love this below quote from Jeff:
The educators or class organizers can opt for chatbots to simplify daily routine tasks. Chatbots may serve as a helping hand to the teacher in dealing with the daily queries by allowing bots to answer the questions of students on a daily basis, or perhaps even check their homework. Eventually, they offer teachers more time to work with their students on a one-by-one basis.

Having a conversation with a computer might have seemed like science fiction even a few years ago. But now, most of us already use chatbots for a variety of tasks. For example, as end users, we ask the virtual assistant on our smartphones to find a local restaurant and provide directions. Or, we use an online banking chatbot for help with a loan application.

“We believe that you don’t need to know how to program to build a bot, that’s what inspired us at Chatfuel a year ago when we started bot builder. We noticed bots becoming hyper-local, i.e. a bot for a soccer team to keep in touch with fans or a small art community bot. Bots are efficient and when you let anyone create them easily magic happens.” — Dmitrii Dumik, Founder of Chatfuel
The idea was to permit Tay to “learn” about the nuances of human conversation by monitoring and interacting with real people online. Unfortunately, it didn’t take long for Tay to figure out that Twitter is a towering garbage-fire of awfulness, which resulted in the Twitter bot claiming that “Hitler did nothing wrong,” using a wide range of colorful expletives, and encouraging casual drug use. While some of Tay’s tweets were “original,” in that Tay composed them itself, many were actually the result of the bot’s “repeat back to me” function, meaning users could literally make the poor bot say whatever disgusting remarks they wanted. 
Through Knowledge Graph, Google search has already become amazingly good at understanding the context and meaning of your queries, and it is getting better at natural language queries. With its massive scale in data and years of working at the very hard problems of natural language processing, the company has a clear path to making Allo’s conversational commerce capabilities second to none.
Cheyer explains Viv like this. Imagine you need to pick up a bottle of wine that goes well with lasagna on the way to your brother's house. If you wanted to do that yourself, you'd need to determine which wine goes well with lasagna (search #1) then find a wine store that carries it (search #2) that is on the way to your brother's house (search #3). Once you have that figured out, you have to calculate what time you need to leave to stop at the wine store on the way (search #4) and still make it to his house on time.

In our research, we collaborate with a strong network of national and international partners from academia and industry. We aim to bring together different people with different skill sets and expertise to engage in innovative research projects and to strengthen the exchange between research and practice. Our partnerships can take various forms, including project-based collaboration, research scholarships, and publicly funded projects.
Last, but not least coming in with the bot platform for business is FlowXO, which creates bots for Messenger, Slack, SMS, Telegraph and the web. This platform allows for creating various flexibility in bots by giving you the option to create a fully automated bot, human, or a hybrid of both. ChatBot expert Murray Newlands commented that "Where 10 years ago every company needed a website and five  years ago every company needed an app, now every company needs to embrace messaging with AI and chatbots."
The trained neural network is less code than an comparable algorithm but it requires a potentially large matrix of “weights”. In a relatively small sample, where the training sentences have 150 unique words and 30 classes this would be a matrix of 150x30. Imagine multiplying a matrix of this size 100,000 times to establish a sufficiently low error rate. This is where processing speed comes in.

Conversational bots work in a similar way as an employee manning a customer care desk. When a customer asks for assistance, the conversational bot is the medium responding. If a customer asks the question, “What time does your store close on Friday?” the conversational bot would respond the same as a human would, based on the information available. “Our store closes at 5pm on Friday.”


The classic historic early chatbots are ELIZA (1966) and PARRY (1972).[10][11][12][13] More recent notable programs include A.L.I.C.E., Jabberwacky and D.U.D.E (Agence Nationale de la Recherche and CNRS 2006). While ELIZA and PARRY were used exclusively to simulate typed conversation, many chatbots now include functional features such as games and web searching abilities. In 1984, a book called The Policeman's Beard is Half Constructed was published, allegedly written by the chatbot Racter (though the program as released would not have been capable of doing so).[14]
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