Derived from “chat robot”, "chatbots" allow for highly engaging, conversational experiences, through voice and text, that can be customized and used on mobile devices, web browsers, and on popular chat platforms such as Facebook Messenger, or Slack. With the advent of deep learning technologies such as text-to-speech, automatic speech recognition, and natural language processing, chatbots that simulate human conversation and dialogue can now be found in call center and customer service workflows, DevOps management, and as personal assistants.

Whilst the payout wasn't huge within the early days of Amazon, those who got in early are now seeing huge rewards, with 38% of shoppers starting their buying journey within Amazon (source), making it the number one retail search engine. Some studies are suggesting that Amazon is responsible for 80% of e-commerce growth for publicly traded web retailers (source).


Eventually, a single chatbot could become your own personal assistant to take care of everything, whether it's calling you an Uber or setting up a meeting. Or, Facebook Messenger or another platform might let a bunch of individual chatbots to talk to you about whatever is relevant — a chatbot from Southwest Airlines could tell you your flight's delayed, another chatbot from FedEx could tell you your package is on the way, and so on.
One pertinent field of AI research is natural language processing. Usually, weak AI fields employ specialized software or programming languages created specifically for the narrow function required. For example, A.L.I.C.E. uses a markup language called AIML, which is specific to its function as a conversational agent, and has since been adopted by various other developers of, so called, Alicebots. Nevertheless, A.L.I.C.E. is still purely based on pattern matching techniques without any reasoning capabilities, the same technique ELIZA was using back in 1966. This is not strong AI, which would require sapience and logical reasoning abilities.
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.
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.
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A bot is software that is designed to automate the kinds of tasks you would usually do on your own, like making a dinner reservation, adding an appointment to your calendar or fetching and displaying information. The increasingly common form of bots, chatbots, simulate conversation. They often live inside messaging apps — or are at least designed to look that way — and it should feel like you’re chatting back and forth as you would with a human.
Kik is one of the most popular chat apps among teens with 275M MAUs and 40% of those are in the 13–24 year old demographic. In April, Kik launched its own bot store with 16 launch partners including Sephora, H&M, Vine, the Weather Channel, and Funny or Die. Using Kik’s bots currently feel like using the internet in 1994, very rough around the edges and limited functionality / usefulness. However, we’ll see how their API and bots progress over time, Kik’s popularity among an attractive demographic might convince some brands to invest in the platform.
Once you’ve determined these factors, you can develop the front-end web app or microservice. You might decide to integrate a chatbot into a customer support website where a customer clicks on an icon that immediately triggers a chatbot conversation. You could also integrate a chatbot into another communication channel, whether it’s Slack or Facebook Messenger. Building a “Slackbot,” for example, gives your users another way to get help or find information within a familiar interface.

Chatbots can have varying levels of complexity and can be stateless or stateful. A stateless chatbot approaches each conversation as if it was interacting with a new user. In contrast, a stateful chatbot is able to review past interactions and frame new responses in context. Adding a chatbot to a company's service or sales department requires low or no coding; today, a number of chatbot service providers that allow developers to build conversational user interfaces for third-party business applications.

Malicious chatbots are frequently used to fill chat rooms with spam and advertisements, by mimicking human behaviour and conversations or to entice people into revealing personal information, such as bank account numbers. They are commonly found on Yahoo! Messenger, Windows Live Messenger, AOL Instant Messenger and other instant messaging protocols. There has also been a published report of a chatbot used in a fake personal ad on a dating service's website.[44]
aLVin is built on the foundation of Nuance’s Nina, the intelligent multichannel virtual assistant that leverages natural language understanding (NLU) and cognitive computing capabilities. aLVin interacts with brokers to better understand “intent” and deliver the right information 24/7; the chatbot was built with extensive knowledge of LV=Broker’s products, which accelerated the process of being able to answer more questions and direct brokers to the right products early on
ELIZA's key method of operation (copied by chatbot designers ever since) involves the recognition of clue words or phrases in the input, and the output of corresponding pre-prepared or pre-programmed responses that can move the conversation forward in an apparently meaningful way (e.g. by responding to any input that contains the word 'MOTHER' with 'TELL ME MORE ABOUT YOUR FAMILY').[9] Thus an illusion of understanding is generated, even though the processing involved has been merely superficial. ELIZA showed that such an illusion is surprisingly easy to generate, because human judges are so ready to give the benefit of the doubt when conversational responses are capable of being interpreted as "intelligent".
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