There are situations for chatbots, however, if you are able to recognize the limitations of chatbot technology. The real value from chatbots come from limited workflows such as a simple question and answer or trigger and action functionality, and that’s where the technology is really shining. People tend to want to find answers without the need to talk to a real person, so organizations are enabling their customers to seek help how they please. Mastercard allows users to check in with their accounts by messaging its respective bot. Whole Foods uses a chatbot for its customers to easily surface recipes, and Staples partnered with IBM to create a chatbot to answer general customer inquiries about orders, products and more.
Online chatbots save time and efforts by automating customer support. Gartner forecasts that by 2020, over 85% of customer interactions will be handled without a human. However, the opportunites provided by chatbot systems go far beyond giving responses to customers’ inquiries. They are also used for other business tasks, like collecting information about users, helping to organize meetings and reducing overhead costs. There is no wonder that size of the chatbot market is growing exponentially.
Simplified and scripted. Chatbot technology is being tacked on to the broader AI message, and while it’s important to note that machine learning will help chatbots get better at understand and responding to questions, it’s not going to make them the conversationalists we dream them to be. No matter what the marketing says, chatbots are entirely scripted. User says x, chatbot responds y.
Companies use internet bots to increase online engagement and streamline communication. Companies often use bots to cut down on cost, instead of employing people to communicate with consumers, companies have developed new ways to be efficient. These chatbots are used to answer customers' questions. For example, Domino's has developed a chatbot that can take orders via Facebook Messenger. Chatbots allow companies to allocate their employees' time to more important things.[10]

It may be tempting to assume that users will perform procedural tasks one by one in a neat and orderly way. For example, in a procedural conversation flow using dialogs, the user will start at root dialog, invoke the new order dialog from there, and then invoke the product search dialog. Then the user will select a product and confirm, exiting the product search dialog, complete the order, exiting the new order dialog, and arrive back at the root dialog.


If you visit a Singapore government website in the near future, chances are you’ll be using a chatbot to access the services you need, as part of the country’s Smart Nation initiative. In Australia, Deakin University students now access campus services using its ‘Genie’ virtual assistant platform, made up of chatbots, artificial intelligence (AI), voice recognition and predictive analytics.

Closed domain chatbots focus on a specific knowledge domain, and these bots may fail to answer questions in other knowledge domains. For example, a restaurant booking conversational bot will be able to take your reservation, but may not respond to a question about the price of an air ticket. A user could hypothetically attempt to take the conversation elsewhere, however, closed domain chatbots are not required, nor often programmed to handle such cases.
One of the first stepping stones to this future are AI-powered messaging solutions, or conversational bots. A conversational bot is a computer program that works automatically and is skilled in communicating through various digital media—including intelligent virtual agents, organizations' apps, organizations' websites, social platforms and messenger platforms. Users can interact with such bots, using voice or text, to access information, complete tasks or execute transactions. 
The process of building, testing and deploying chatbots can be done on cloud-based chatbot development platforms[51] offered by cloud Platform as a Service (PaaS) providers such as Oracle Cloud Platform Yekaliva[47][28] and IBM Watson.[52][53][54] These cloud platforms provide Natural Language Processing, Artificial Intelligence and Mobile Backend as a Service for chatbot development.
[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.
How: this involves creating a basic content block within Chatfuel that has a discount code within it. Instead of giving all users of the bot the same experience, you can direct them through to specific parts of the conversation (or 'blocks'). Using the direct link to your content block, you'll be able to create CTAs on your website that direct people straight into Messenger to get a discount code (more info here).
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:
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.
The process of building a chatbot can be divided into two main tasks: understanding the user's intent and producing the correct answer. The first task involves understanding the user input. In order to properly understand a user input in a free text form, a Natural Language Processing Engine can be used.[36] The second task may involve different approaches depending on the type of the response that the chatbot will generate.
Keep it conversational: Chatbots help make it easy for users to find the information they need. Users can ask questions in a conversational way, and the chatbots can help them refine their searches through their responses and follow-up questions. Having had substantial experience with personal assistants on their smartphones and elsewhere, users today expect this level of informal interaction. When chatbot users are happy, the organizations employing the chatbots benefit.
In 1950, Alan Turing's famous article "Computing Machinery and Intelligence" was published,[7] which proposed what is now called the Turing test as a criterion of intelligence. This criterion depends on the ability of a computer program to impersonate a human in a real-time written conversation with a human judge, sufficiently well that the judge is unable to distinguish reliably—on the basis of the conversational content alone—between the program and a real human. The notoriety of Turing's proposed test stimulated great interest in Joseph Weizenbaum's program ELIZA, published in 1966, which seemed to be able to fool users into believing that they were conversing with a real human. However Weizenbaum himself did not claim that ELIZA was genuinely intelligent, and the introduction to his paper presented it more as a debunking exercise:
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