Previous generations of chatbots were present on company websites, e.g. Ask Jenn from Alaska Airlines which debuted in 2008 or Expedia's virtual customer service agent which launched in 2011. The newer generation of chatbots includes IBM Watson-powered "Rocky", introduced in February 2017 by the New York City-based e-commerce company Rare Carat to provide information to prospective diamond buyers.
ELIZA's key method of operation (copied by chatbot designers ever since) involves the recognition of cue 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'). 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".
The term "ChatterBot" was originally coined by Michael Mauldin (creator of the first Verbot, Julia) in 1994 to describe these conversational programs. Today, most chatbots are accessed via virtual assistants such as Google Assistant and Amazon Alexa, via messaging apps such as Facebook Messenger or WeChat, or via individual organizations' apps and websites. Chatbots can be classified into usage categories such as conversational commerce (e-commerce via chat), analytics, communication, customer support, design, developer tools, education, entertainment, finance, food, games, health, HR, marketing, news, personal, productivity, shopping, social, sports, travel and utilities.