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.

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.
I argued that it is super hard to scale a one-trick TODA into a general assistant that helps the user getting things done across multiple tasks. An intelligence assistant is arguably expected to hold an informal chit-chat with the user. It is this area where we are staring into perhaps the biggest challenge of AI. Observe how Samantha introduces herself to Joaquin Phoenix’s Ted in the clip below:
Chatbots can perform a range of simple transactions. Telegram bots let users transfer money, buy train tickets, book hotel rooms, and more. AI chatbots are especially sought-after in the retail industry. WholeFoods, a healthy food store chain in the US, uses a chatbot to help customers find the nearest store. The 1-800-Flowers chatbot lets customers order flowers and gifts. In the image below, you can see more ways you might use AI chatbots for your business.
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.
Evie's capacities go beyond mere verbal or textual interactions; the AI utilised in Evie also extends to controlling the timing and degree of facial expressions and movement. Her visually displayed reactions and emotions blend and vary in surprisingly complex ways, and a range of voices are delivered to your browser, along with lip synching information, to bring the avatar to life! Evie uses Flash if your browser supports it, but still works even without, thanks to our own Existor Avatar Player technology, allowing you to enjoy her to the full on iOS and Android.
With our intuitive interface, you dont need any programming skills to create realistic and entertaining chatbots. Your chatbots live on the site and can chat independently with others. Transcripts of every chatbot's conversations are kept so you can read what your bot has said, and see their emotional relationships and memories. Best of all, it's free!
Think about the possibilities: all developers regardless of expertise in data science able to build conversational AI that can enrich and expand the reach of applications to audiences across a myriad of conversational channels. The app will be able to understand natural language, reason about content and take intelligent actions. Bringing intelligent agents to developers and organizations that do not have expertise in data science is disruptive to the way humans interact with computers in their daily life and the way enterprises run their businesses with their customers and employees.
One of the more talked about integrations has been Taco Bell‘s announcement that it is working on a Slackbot (appropriately named Tacobot) which will not only take your Gordita Supreme order but will do it with the same “witty personality you’d expect from Taco Bell.” Consumer demand for such a service remains to be seen, but it hints at the potential for brands to leverage Slack’s platform and growing audience.
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
In other words, bots solve the thing we loathed about apps in the first place. You don't have to download something you'll never use again. It's been said most people stick to five apps. Those holy grail spots? They're increasingly being claimed by messaging apps. Today, messaging apps have over 5 billion monthly active users, and for the first time, people are using them more than social networks.
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.

Chatbots are predicted to be progressively present in businesses and will automate tasks that do not require skill-based talents. Companies are getting smarter with touchpoints and customer service now comes in the form of instant messenger, as well as phone calls. IBM recently predicted that 85% of customer service enquiries will be handled by AI as early as 2020.[62] The call centre workers may be particularly at risk from AI.[63]


Interestingly, the as-yet unnamed conversational agent is currently an open-source project, meaning that anyone can contribute to the development of the bot’s codebase. The project is still in its earlier stages, but has great potential to help scientists, researchers, and care teams better understand how Alzheimer’s disease affects the brain. A Russian version of the bot is already available, and an English version is expected at some point this year.
Alternatively, think about the times you are chatting with a colleague over Slack. The need to find relevant information typically happens during conversations, and instead of having to go to a browser to start searching, you could simply summon your friendly Slack chatbot and get it to do the work for you. Think of it as your own personal podcast producer – pulling up documents, facts, and data at the drop of a hat. This concept can be translated into the virtual assistants we use on the daily. Think about an ambient assistant like Alexa or Google Home that could just be part of a group conversation. Or your trusted assistant taking notes and actions during a meeting.
Your first question is how much of it does she want? 1 litre? 500ml? 200? She tells you she wants a 1 litre Tropicana 100% Orange Juice. Now you know that regular Tropicana is easily available, but 100% is hard to come by, so you call up a few stores beforehand to see where it’s available. You find one store that’s pretty close by, so you go back to your mother and tell her you found what she wanted. It’s $3 and after asking her for the money, you go on your way.
Improve loyalty: By providing a responsive, efficient experience for customers, employees and partners, a chatbot will improve satisfaction and loyalty. Whether your chatbot answers questions about employees’ corporate benefits or provides answers to technical support questions, users can come away with a strengthened connection to your organization.
Businesses are no exception to this rule. As more and more users now expect and prefer chat as a primary mode of communication, we’ll begin to see more and more businesses leveraging conversational AI to achieve business goals—just as Gartner predicts. It’s not just for the customer; your business can reduce operational costs and scale operations as well.

Reduce costs: The potential to reduce costs is one of the clearest benefits of using a chatbot. A chatbot can provide a new first line of support, supplement support during peak periods or offer an additional support option. In all of these cases, employing a chatbot can help reduce the number of users who need to speak with a human. You can avoid scaling up your staff or offering human support around the clock.


As AOL's David Shingy writes in Adweek, "The challenge [with chatbots] will be thinking about creative from a whole different view: Can we have creative that scales? That customizes itself? We find ourselves hurtling toward another handoff from man to machine -- what larger system of creative or complex storytelling structure can I design such that a machine can use it appropriately and effectively?"
Another option is to integrate your own custom AI service. This approach is more complex, but gives you complete flexibility in terms of the machine learning algorithm, training, and model. For example, you could implement your own topic modeling and use algorithm such as LDA to find similar or relevant documents. A good approach is to expose your custom AI solution as a web service endpoint, and call the endpoint from the core bot logic. The web service could be hosted in App Service or in a cluster of VMs. Azure Machine Learning provides a number of services and libraries to assist you in training and deploying your models.
For example, say you want to purchase a pair of shoes online from Nordstrom. You would have to browse their site and look around until you find the pair you wanted. Then you would add the pair to your cart to go through the motions of checking out. But in the case Nordstrom had a conversational bot, you would simply tell the bot what you’re looking for and get an instant answer. You would be able to search within an interface that actually learns what you like, even when you can’t coherently articulate it. And in the not-so-distant future, we’ll even have similar experiences when we visit the retail stores.
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.
A chatbot works in a couple of ways: set guidelines and machine learning. A chatbot that functions with a set of guidelines in place is limited in its conversation. It can only respond to a set number of requests and vocabulary, and is only as intelligent as its programming code. An example of a limited bot is an automated banking bot that asks the caller some questions to understand what the caller wants done. The bot would make a command like “Please tell me what I can do for you by saying account balances, account transfer, or bill payment.” If the customer responds with "credit card balance," the bot would not understand the request and would proceed to either repeat the command or transfer the caller to a human assistant.
A very common request that we get is people want to practice conversation, said Duolingo's co-founder and CEO, Luis von Ahn. The company originally tried pairing up non-native speakers with native speakers for practice sessions, but according to von Ahn, "about three-quarters of the people we try it with are very embarrassed to speak in a foreign language with another person."
It may be tempting to assume that users will navigate across dialogs, creating a dialog stack, and at some point will navigate back in the direction they came from, unstacking the dialogs one by one in a neat and orderly way. For example, 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.
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.
As in the prior method, each class is given with some number of example sentences. Once again each sentence is broken down by word (stemmed) and each word becomes an input for the neural network. The synaptic weights are then calculated by iterating through the training data thousands of times, each time adjusting the weights slightly to greater accuracy. By recalculating back across multiple layers (“back-propagation”) the weights of all synapses are calibrated while the results are compared to the training data output. These weights are like a ‘strength’ measure, in a neuron the synaptic weight is what causes something to be more memorable than not. You remember a thing more because you’ve seen it more times: each time the ‘weight’ increases slightly.
Earlier, I made a rather lazy joke with a reference to the Terminator movie franchise, in which an artificial intelligence system known as Skynet becomes self-aware and identifies the human race as the greatest threat to its own survival, triggering a global nuclear war by preemptively launching the missiles under its command at cities around the world. (If by some miracle you haven’t seen any of the Terminator movies, the first two are excellent but I’d strongly advise steering clear of later entries in the franchise.)
Amazon’s Echo device has been a surprise hit, reaching over 3M units sold in less than 18 months. Although part of this success can be attributed to the massive awareness-building power of the Amazon.com homepage, the device receives positive reviews from customers and experts alike, and has even prompted Google to develop its own version of the same device, Google Home.
Many expect Facebook to roll out a bot store of some kind at its annual F8 conference for software developers this week, which means these bots may soon operate inside Messenger, its messaging app. It has already started testing a virtual assistant bot called “M,” but the product is only available for a few people and still primarily powered by humans.
As AOL's David Shingy writes in Adweek, "The challenge [with chatbots] will be thinking about creative from a whole different view: Can we have creative that scales? That customizes itself? We find ourselves hurtling toward another handoff from man to machine -- what larger system of creative or complex storytelling structure can I design such that a machine can use it appropriately and effectively?"
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.
SEO has far less to do with content and words than people think. Google ranks sites based on the experience people have with brands. If a bot can enhance that experience in such a way that people are more enthusiastic about a site – they share it, return to it, talk about it, and spend more time there, it will affect positively how the site appears in Google.
Other companies explore ways they can use chatbots internally, for example for Customer Support, Human Resources, or even in Internet-of-Things (IoT) projects. Overstock.com, for one, has reportedly launched a chatbot named Mila to automate certain simple yet time-consuming processes when requesting for a sick leave.[31] Other large companies such as Lloyds Banking Group, Royal Bank of Scotland, Renault and Citroën are now using automated online assistants instead of call centres with humans to provide a first point of contact. A SaaS chatbot business ecosystem has been steadily growing since the F8 Conference when Facebook's Mark Zuckerberg unveiled that Messenger would allow chatbots into the app.[32] In large companies, like in hospitals and aviation organizations, IT architects are designing reference architectures for Intelligent Chatbots that are used to unlock and share knowledge and experience in the organization more efficiently, and reduce the errors in answers from expert service desks significantly.[33] These Intelligent Chatbots make use of all kinds of artificial intelligence like image moderation and natural language understanding (NLU), natural language generation (NLG), machine learning and deep learning.
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