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.
Short for chat robot, a computer program that simulates human conversation, or chat, through artificial intelligence. Typically, a chat bot will communicate with a real person, but applications are being developed in which two chat bots can communicate with each other. Chat bots are used in applications such as ecommerce customer service, call centers and Internet gaming. Chat bots used for these purposes are typically limited to conversations regarding a specialized purpose and not for the entire range of human communication.

Using chatbot builder platforms. You can create a chatbot with the help of services providing all the necessary features and integrations. It can be a good choice for an in-house chatbot serving your team. This option is associated with some disadvantages, including the limited configuration and the dependence on the service. Some popular platforms for building chatbots are:
In a procedural conversation flow, you define the order of the questions and the bot will ask the questions in the order you defined. You can organize the questions into logical modules to keep the code centralized while staying focused on guiding the conversational. For example, you may design one module to contain the logic that helps the user browse for products and a separate module to contain the logic that helps the user create a new order.
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. utilises 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.

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.
The Evie chatbot has had a huge impact on social media over the last few years. She is probably the most popular artificial personality on YouTube. She has appeared in several videos by PewdiePie, the most subscribed YouTuber in the world. This includes a flirting video with over 12 million views! Evie has been filmed speaking many different languages. She chats with Squeezie in French, El Rubius and El Rincón De Giorgio in Spanish, GermanLetsPlay and ConCrafter in German, NDNG - Enes Batur in Turkish, Stuu Games in Polish and jacksepticeye, ComedyShortsGamer and KSIOlajidebtHD in English. And that is a very small selection. Evie shares her database with Cleverbot, which is an internet star in its own right. Cleverbot conversations have long been shared on Twitter, Facebook, websites, forums and bulletin boards. We are currently working to give Evie some more artificial companions, such as the male avatar Boibot.
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.”

To inspire your first (or next) foray into the weird and wonderful world of chatbots, we've compiled a list of seven brands whose bot-based campaigns were fueled by an astute knowledge of their target audiences and solid copywriting. Check them out below, and start considering if a chatbot is the right move for your own company's next big marketing campaign.
For designing a chatbot conversation, you can refer this blog — “How to design a conversation for chatbots.” Chatbot interactions are segmented into structured and unstructured interactions. As the name suggests, the structured type is more about the logical flow of information, including menus, choices, and forms into account. The unstructured conversation flow includes freestyle plain text. Conversations with family, colleagues, friends and other acquaintances fall into this segment. Developing scripts for these messages will follow suit. While developing the script for messages, it is important to keep the conversation topics close to the purpose served by the chatbot. For the designer, interpreting user answers is important to develop scripts for a conversational user interface. The designer also turns their attention to close-ended conversations that are easy to handle and open-ended conversations that allow customers to communicate naturally.
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:
In one particularly striking example of how this rather limited bot has made a major impact, U-Report sent a poll to users in Liberia about whether teachers were coercing students into sex in exchange for better grades. Approximately 86% of the 13,000 Liberian children U-Report polled responded that their teachers were engaged in this despicable practice, which resulted in a collaborative project between UNICEF and Liberia’s Minister of Education to put an end to it.
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.
Botsify is another Facebook chatbot platform that helps make it easy to integrate chatbots into the system. Its paid subscription helps you in five easy steps. 1) Log into the botsify.com site, 2) Connect your Facebook account, 3) Setup a webhook, 4) Write up commands for the chatbot you are creating, and 5) Let Botisfy handle the customer service for you. If the paid services are a little too much, they do offer a free service that lets you create as many bots as your lovely imagination can dream up.

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 biggest benefit of having a conversational AI solution is the instant response rate. Answering queries within an hour translates into 7X increase in the likelihood of converting a lead. Customers are more likely to talk about a negative experience than a positive one. So nipping a negative review right in the bud is going to help improve your product’s brand standing.
With natural language processing (NLP), a bot can understand what a human is asking. The computer translates the natural language of a question into its own artificial language. It breaks down human inputs into coded units and uses algorithms to determine what is most likely being asked of it. From there, it determines the answer. Then, with natural language generation (NLG), it creates a response. NLG software allows the bot to construct and provide a response in the natural language format.
Its a chat-bot — For simplicity reasons in this article, it is assumed that the user will type in text and the bot would respond back with an appropriate message in the form of text (So, we will not be concerned with the aspects like ASR, speech recognition, speech to text, text to speech etc., Below architecture can anyways be enhanced with these components, as required).
Next, identify the data sources that will enable the bot to interact intelligently with users. As mentioned earlier, these data sources could contain structured, semi-structured, or unstructured data sets. When you're getting started, a good approach is to make a one-off copy of the data to a central store, such as Cosmos DB or Azure Storage. As you progress, you should create an automated data ingestion pipeline to keep this data current. Options for an automated ingestion pipeline include Data Factory, Functions, and Logic Apps. Depending on the data stores and the schemas, you might use a combination of these approaches.
The market shapes customer behavior. Gartner predicts that “40% of mobile interactions will be managed by smart agents by 2020.” Every single business out there today either has a chatbot already or is considering one. 30% of customers expect to see a live chat option on your website. Three out of 10 consumers would give up phone calls to use messaging. As more and more customers begin expecting your company to have a direct way to contact you, it makes sense to have a touch point on a messenger.

Once the chatbot is ready and is live interacting with customers, smart feedback loops can be implemented. During the conversation when customers ask a question, chatbot smartly give them a couple of answers by providing different options like “Did you mean a,b or c”. That way customers themselves matches the questions with actual possible intents and that information can be used to retrain the machine learning model, hence improving the chatbot’s accuracy.
Chatbots have come a long way since then. They are built on AI technologies, including deep learning, natural language processing and  machine learning algorithms, and require massive amounts of data. The more an end user interacts with the bot, the better voice recognition becomes at predicting what the appropriate response is when communicating with an end user.
Today, more than ever, instant availability and approachability matter. Which is why your presence should be dictated by your customer’s preference or the type of message your business wants to convey. Keep in mind that these can overlap or change depending on your demographic you wish to acquire or cater to. There are very few set-in-stone rules when it comes to new customers.

As the above chart (source) illustrates, email click-rate has been steadily declining. Whilst open rates seem to be increasing - largely driven by mobile - the actual engagement from email is nosediving. Not only that, but it's becoming more and more difficult to even reach someone's email inbox; Google's move to separate out promotional emails into their 'promotions' tab and increasing problems of email deliverability have been top reasons behind this.

It’s not all doom and gloom for chatbots. Chatbots are a stopgap until virtual assistants are able to tackle all of our questions and concerns, regardless of the site or platform. Virtual assistants will eventually connect to everything in your digital life, from websites to IoT-enabled devices. Rather than going through different websites and speaking to various different chatbots, the virtual assistant will be the platform for finding the answers you need. If these assistants are doing such a good job, why would you even bother to use a branded chatbot? Realistically this won’t take place for sometime, due to the fragmentation of the marketplace.


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.
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.
Some bots communicate with other users of Internet-based services, via instant messaging (IM), Internet Relay Chat (IRC), or another web interface such as Facebook Bots and Twitterbots. These chatterbots may allow people to ask questions in plain English and then formulate a proper response. These bots can often handle many tasks, including reporting weather, zip-code information, sports scores, converting currency or other units, etc.[citation needed] Others are used for entertainment, such as SmarterChild on AOL Instant Messenger and MSN Messenger.
This machine learning algorithm, known as neural networks, consists of different layers for analyzing and learning data. Inspired by the human brain, each layer is consists of its own artificial neurons that are interconnected and responsive to one another. Each connection is weighted by previous learning patterns or events and with each input of data, more "learning" takes place.
This kind of thinking has lead me to develop a bot where the focus is as a medium for content rather than a subsitute for intelligence. So users create content much as conventional author, (but with text stored in spreadsheets rather than anywhere else). Very little is expected from the bot in terms of human behavious such as “learning”, “empathy”, “memory” and character”. Does it work?
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.

As IBM elaborates: “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.”

Feine, J., Morana, S., and Maedche, A. (2019). “Leveraging Machine-Executable Descriptive Knowledge in Design Science Research ‐ The Case of Designing Socially-Adaptive Chatbots”. In: Extending the Boundaries of Design Science Theory and Practice. Ed. by B. Tulu, S. Djamasbi, G. Leroy. Cham: Springer International Publishing, pp. 76–91. Download Publication
Search for the bot you want to add. At the time of this writing, there are about a dozen bots available, with more being added every day. Chat bots are available for customer service, news, ordering, and more, depending on the company that releases it. For example, you could get news from the CNN bot and order flowers from the 1-800-flowers bot. The process for finding a bot varies depending on your device:[1]
Ursprünglich rein textbasiert, haben sich Chatbots durch immer stärker werdende Spracherkennung und Sprachsynthese weiterentwickelt und bieten neben reinen Textdialogen auch vollständig gesprochene Dialoge oder einen Mix aus beidem an. Zusätzlich können auch weitere Medien genutzt werden, beispielsweise Bilder und Videos. Gerade mit der starken Nutzung von mobilen Endgeräten (Smartphones, Wearables) wird diese Möglichkeit der Nutzung von Chatbots weiter zunehmen (Stand: Nov. 2016).[10] Mit fortschreitender Verbesserung sind Chatbots dabei nicht nur auf wenige eingegrenzte Themenbereiche (Wettervorhersage, Nachrichten usw.) begrenzt, sondern ermöglichen erweiterte Dialoge und Dienstleistungen für den Nutzer. Diese entwickeln sich so zu Intelligenten Persönlichen Assistenten.
The NLP system has a wide and varied lexicon to better understand the complexities of natural language. Using an algorithmic process, it determines what has been asked and uses decision trees or slot-based algorithms that go through a predefined conversation path. After it understands the question, the computer then finds the best answer and provides it in the natural language of the user.

…utilizing chat, messaging, or other natural language interfaces (i.e. voice) to interact with people, brands, or services and bots that heretofore have had no real place in the bidirectional, asynchronous messaging context. The net result is that you and I will be talking to brands and companies over Facebook Messenger, WhatsApp, Telegram, Slack, and elsewhere before year’s end, and will find it normal.


Respect the conversational UI. The full interaction should take place natively within the app. The goal is to recognize the user's intent and provide the right content with minimum user input. Every question asked should bring the user closer to the answer they want. If you need so much information that you're playing a game of 20 Questions, then switch to a form and deliver the content another way.
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.
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