Marketing teams are increasingly interested in leveraging branded chatbots, but most struggle to deliver business value. My recently published report, Case Study: Take A Focused And Disciplined Approach To Drive Chatbot Success, shows how OCBC Bank in Singapore is bucking the trend: The bank recently created Emma, a chatbot focused on home loan leads, which […]
As VP of Coveo’s Platform line of business, Gauthier Robe oversees the company’s Intelligent Search Platform and roadmap, including Coveo Cloud, announced in June 2015. Gauthier is passionate about using technology to improve customers’ and people’s lives. He has over a decade of international experience in the high-tech industry and deep knowledge of Cloud Computing, electronics, IoT, and product management. Prior to Coveo, Gauthier worked for Amazon Web Services and held various positions in high-tech consulting firms, helping customers envision the future and achieve its potential. Gauthier resides in the Boston area and has an engineering degree from UCL & MIT. In his spare time, Gauthier enjoys tinkering with new technologies and connected devices.
The main challenge is in teaching a chatbot to understand the language of your customers. In every business, customers express themselves differently and each group of a target audience speaks its own way. The language is influenced by advertising campaigns on the market, the political situation in the country, releases of new services and products from Google, Apple and Pepsi among others. The way people speak depends on their city, mood, weather and moon phase. An important role in the communication of the business with customers may have the release of the film Star Wars, for example. That’s why training a chatbot to understand correctly everything the user types requires a lot of efforts.
In the early 90’s, the Turing test, which allows determining the possibility of thinking by computers, was developed. It consists in the following. A person talks to both the person and the computer. The goal is to find out who his interlocutor is — a person or a machine. This test is carried out in our days and many conversational programs have coped with it successfully.
It won’t be an easy march though once we get to the nitty-gritty details. For example, I heard through the grapevine that when Starbucks looked at the voice data they collected from customer orders, they found that there are a few millions unique ways to order. (For those in the field, I’m talking about unique user utterances.) This is to be expected given the wild combinations of latte vs mocha, dairy vs soy, grande vs trenta, extra-hot vs iced, room vs no-room, for here vs to-go, snack variety, spoken accent diversity, etc. The AI practitioner will soon curse all these dimensions before taking a deep learning breath and getting to work. I feel though that given practically unlimited data, deep learning is now good enough to overcome this problem, and it is only a matter of couple of years until we see these TODA solutions deployed. One technique to watch is Generative Adversarial Nets (GAN). Roughly speaking, GAN engages itself in an iterative game of counterfeiting real stuffs, getting caught by the police neural network, improving counterfeiting skill, and rinse-and-repeating until it can pass as your Starbucks’ order-taking person, given enough data and iterations.
When considering potential uses, first assess the impact on resources. There are two options here: replacement or empowerment. Replacement is clearly easier as you don’t need to consider integration with existing processes and you can build from scratch. Empowerment enhances an existing process by making it more flexible, accommodating, accessible and simple for users.
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There are various search engines for bots, such as Chatbottle, Botlist and Thereisabotforthat, for example, helping developers to inform users about the launch of new talkbots. These sites also provide a ranking of bots by various parameters: the number of votes, user statistics, platforms, categories (travel, productivity, social interaction, e-commerce, entertainment, news, etc.). They feature more than three and a half thousand bots for Facebook Messenger, Slack, Skype and Kik.

More and more companies embrace chatbots to increase engagement with their audiences in the last few years. Especially for some industries including banking, insurance, and retail chatbots started to function as efficient interactive tools to increase customer satisfaction and cost-effectiveness. A study by Humley found out 43% of digital banking users are turning to chatbots – the increasing trend shows that banking customers consider the chatbot as an alternative channel to get instant information and solve their issues.
“I’ve seen a lot of hyperbole around bots as the new apps, but I don’t know if I believe that,” said Prashant Sridharan, Twitter’s global director of developer relations. “I don’t think we’re going to see this mass exodus of people stopping building apps and going to build bots. I think they’re going to build bots in addition to the app that they have or the service they provide.”

Simply put, chatbots are computer programs designed to have conversations with human users. Chances are you’ve interacted with one. They answer questions, guide you through a purchase, provide technical support, and can even teach you a new language. You can find them on devices, websites, text messages, and messaging apps—in other words, they’re everywhere.


Malicious chatbots are frequently used to fill chat rooms with spam and advertisements, by mimicking human behavior 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.[55]
Forrester Launches New Survey On AI Adoption There’s no doubt that artificial intelligence (AI) is top of mind for executives. AI adoption started in earnest in 2016, and Forrester anticipates AI investments to continue to increase. Leaders are quickly waking up to AI’s disruptive characteristics and the need to embrace this emerging technology to remain […]
Chatbots are a great way to answer customer questions. According to a case study, Amtrak uses chatbots to answer roughly 5,000,000 questions a year. Not only are the questions answered promptly, but Amtrak saved $1,000,000 in customer service expenses in the year the study was conducted. It also experienced a 25 percent increase in travel bookings.

Do the nature of our services and size of our customer base warrant an investment in a more efficient and automated customer service response? How can we offer a more streamlined experience without (necessarily) increasing costly human resources?  Amtrak’s website receives over 375,000 daily visitors, and they wanted a solution that provided users with instant access to online self-service.

The most advanced bots are powered by artificial intelligence, helping it to understand complex requests, personalize responses, and improve interactions over time. This technology is still in its infancy, so most bots follow a set of rules programmed by a human via a bot-building platform. It's as simple as ordering a list of if-then statements and writing canned responses, often without needing to know a line of code.
With last year’s refresh of AppleTV, Apple brought its Siri voice assistant to the center of the UI. You can now ask Siri to play your favorite TV shows, check the weather, search for and buy specific types of movies, and a variety of other specific tasks. Although far behind Amazon’s Echo in terms of breadth of functionality, Apple will no doubt expand Siri’s integration into AppleTV, and its likely that the company will introduce a new version of AppleTV that more directly competes with the Echo, perhaps with a voice remote control that is always listening for commands.
To keep chatbots up to speed with changing company products and services, traditional chatbot development platforms require ongoing maintenance. This can either be in the form of an ongoing service provider or for larger enterprises in the form of an in-house chatbot training team.[38] To eliminate these costs, some startups are experimenting with Artificial Intelligence to develop self-learning chatbots, particularly in Customer Service applications.
Two trends — the exploding popularity of mobile messaging apps and advances in artificial intelligence — are coinciding to enable a new generation of tools that enable brands to communicate with customers in powerful new ways at reduced cost. Retailers and technology firms are experimenting with chatbots, powered by a combination of machine learning, natural language processing, and live operators, to provide customer service, sales support, and other commerce-related functions.
An ecommerce website’s user interface is an important part of the overall application. It has amazing product pictures for shoppers to look at. It has an advanced search tool to help the shopper locate products. It has lovely buttons users can click to add products to the shopping cart. And it has forms for entering payment information or an address.
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.

2017 was the year that AI and chatbots took off in business, not just in developed nations, but across the whole world. Sage have reported that this global trend is boosting international collaboration between startups across all continents, such as the European Commission-backed Startup Europe Comes to Africa (SEC2A) which was held in November 2017.
Kunze recognises that chatbots are the vogue subject right now, saying: “We are in a hype cycle, and rising tides from entrants like Microsoft and Facebook have raised all ships. Pandorabots typically adds up to 2,000 developers monthly. In the past few weeks, we've seen a 275 percent spike in sign-ups, and an influx of interest from big, big brands.”
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.
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.
In a bot, everything begins with the root dialog. The root dialog invokes the new order dialog. At that point, the new order dialog takes control of the conversation and remains in control until it either closes or invokes other dialogs, such as the product search dialog. If the new order dialog closes, control of the conversation is returned back to the root dialog.

“I’ve seen a lot of hyperbole around bots as the new apps, but I don’t know if I believe that,” said Prashant Sridharan, Twitter’s global director of developer relations. “I don’t think we’re going to see this mass exodus of people stopping building apps and going to build bots. I think they’re going to build bots in addition to the app that they have or the service they provide.”
One of the key advantages of Roof Ai is that it allows real-estate agents to respond to user queries immediately, regardless of whether a customer service rep or sales agent is available to help. This can have a dramatic impact on conversion rates. It also eliminates potential leads slipping through an agent’s fingers due to missing a Facebook message or failing to respond quickly enough. 
As with many 'organic' channels, the relative reach of your audience tends to decline over time due to a variety of factors. In email's case, it can be the over-exposure to marketing emails and moves from email providers to filter out promotional content; with other channels it can be the platform itself. Back in 2014 I wrote about how "Facebook's Likes Don't Matter Anymore" in relation to the declining organic reach of Facebook pages. Last year alone the organic reach of publishers on Facebook fell by a further 52%.
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.
The main challenge is in teaching a chatbot to understand the language of your customers. In every business, customers express themselves differently and each group of a target audience speaks its own way. The language is influenced by advertising campaigns on the market, the political situation in the country, releases of new services and products from Google, Apple and Pepsi among others. The way people speak depends on their city, mood, weather and moon phase. An important role in the communication of the business with customers may have the release of the film Star Wars, for example. That’s why training a chatbot to understand correctly everything the user types requires a lot of efforts.
Since Facebook Messenger, WhatsApp, Kik, Slack, and a growing number of bot-creation platforms came online, developers have been churning out chatbots across industries, with Facebook’s most recent bot count at over 33,000. At a CRM technologies conference in 2011, Gartner predicted that 85 percent of customer engagement would be fielded without human intervention. Though a seeming natural fit for retail and purchasing-related decisions, it doesn’t appear that chatbot technology will play favorites in the coming few years, with uses cases being promoted in finance, human resources, and even legal services.
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.
We then ran a second test with a very specific topic aimed at answering very specific questions that a small segment of their audience was interested in. There, the engagement was much higher (97% open rate, 52% click-through rate on average over the duration of the test). Interestingly, drop-off went wayyy down there. At the end of this test, only 0.29% of the users had unsubscribed.
With competitor Venmo already established, peer-to-peer payments is not in and of itself a compelling feature for Snapchat. However, adding wallet functionality and payment methods to the app does lay the groundwork for Snapchat to delve directly into commerce. The messaging app’s commerce strategy became more clear in April 2016 with its launch of shoppable stories with select partners in its Discover section. For the first time, while viewing video stories from Target and Lancome, users were able to “swipe up” to visit an e-commerce page embedded within the Snapchat app where they could purchase products from those partners.
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.”

Clare.AI is a frontend assistant that provides modern online banking services. This virtual assistant combines machine learning algorithms with natural language processing. The Clare.AI algorithm is trained to respond to customer service FAQs, arrange appointments, conduct internal inquiries for IT and HR, and help customers control their finances via their favorite messaging apps (WhatsApp, Facebook, WeChat, etc.). It can even draw a chart showing customers how they’ve spent their money.
Tay was built to learn the way millennials converse on Twitter, with the aim of being able to hold a conversation on the platform. In Microsoft’s words: “Tay has been built by mining relevant public data and by using AI and editorial developed by a staff including improvisational comedians. Public data that’s been anonymised is Tay’s primary data source. That data has been modelled, cleaned and filtered by the team developing Tay.”
Previous generations of chatbots were present on company websites, e.g. Ask Jenn from Alaska Airlines which debuted in 2008[20] or Expedia's virtual customer service agent which launched in 2011.[20] [21] 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.[22] [23]
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.
Since Facebook Messenger, WhatsApp, Kik, Slack, and a growing number of bot-creation platforms came online, developers have been churning out chatbots across industries, with Facebook’s most recent bot count at over 33,000. At a CRM technologies conference in 2011, Gartner predicted that 85 percent of customer engagement would be fielded without human intervention. Though a seeming natural fit for retail and purchasing-related decisions, it doesn’t appear that chatbot technology will play favorites in the coming few years, with uses cases being promoted in finance, human resources, and even legal services.
Let’s take a weather chat bot as an example to examine the capabilities of Scripted and Structured chatbots. The question “Will it rain on Sunday?” can be easily answered. However, if there is no programming for the question “Will I need an umbrella on Sunday?” then the query will not be understood by the chat bot. This is the common limitation with scripted and structured chatbots. However, in all cases, a conversational bot can only be as intelligent as the programming it has been given.
“Bots go bust” — so went the first of the five AI startup predictions in 2017 by Bradford Cross, countering some recent excitement around conversational AI (see for example O’Reilly’s “Why 2016 is shaping up to be the Year of the Bot”). The main argument was that social intelligence, rather than artificial intelligence is lacking, rendering bots utilitarian and boring.

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In our work at ZipfWorks building and scaling intelligent shopping platforms and applications, we pay close attention to emerging trends impacting digital commerce such as chatbots and mobile commerce. As this nascent trend towards a more conversational commerce ecosystem unfolds at a dizzying pace, we felt it would be useful to take a step back and look at the major initiatives and forces shaping this trend and compiled them here in this report. We’ve applied some of these concepts in our current project Dealspotr, to help more shoppers save more money through intelligent use of technology and social product design.
For every question or instruction input to the conversational bot, there must exist a specific pattern in the database to provide a suitable response. Where there are several combinations of patterns available, and a hierarchical pattern is created. In these cases, algorithms are used to reduce the classifiers and generate a structure that is more manageable. This is the “reductionist” approach—or, in other words, to have a simplified solution, it reduces the problem.
Niki is a personal assistant that has been developed in India to perform an impressively wide variety of tasks, including booking taxis, buses, hotels, movies and events, paying utilities and recharging your phone, and even organizing laundry pickup and delivery. The application has proven to be a huge success across India and won the Deep Tech prize at the 2017 AWS Mobility Awards.
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 give businesses a way to deliver this information in a comfortable, conversational manner. Customers can have all their questions answered without the pressure or obligation that make some individuals wary of interacting with a live salesperson. Once they’ve obtained enough information to make a decision, a chatbot can introduce a human representative to take the sale the rest of the way.


Haptik is one of the world's largest Conversational AI platforms reaching over 30 million devices monthly. The company has been at the forefront of the paradigm shift from apps to chatbots, having built a robust set of technology and tools that enable any type of conversational application. Our platform processed over a billion interactions to date and helps enterprises leverage the power of AI to automate critical business processes like Concierge, Customer Support, Lead Generation and E-commerce.
The upcoming TODA agents are good at one thing, and one thing only. As Facebook found out with the ambitious Project M, building general personal assistants that can help users in multiple tasks (cross-domain agents) is hard. Think awfully hard. Beyond the obvious increase in scope, knowledge, and vocabulary, there is no built-in data generator that feeds the hungry learning machine (sans an unlikely concerted effort to aggregate the data silos from multiple businesses). The jury is out whether the army of human agents that Project M employs can scale, even with Facebook’s kind of resources. In addition, cross-domain agents will probably need major advances in areas such as domain adaptation, transfer learning, dialog planning and management, reinforcement/apprenticeship learning, automatic dialog evaluation, etc.

As ChatbotLifeexplained, developing bots is not the same as building apps. While apps specialise in a number of functions, chatbots have a bigger capacity for inputs. The trick here is to start with a simple objective and focus on doing it really well (i.e., having a minimum viable product or ‘MVP’). From that point onward, businesses can upgrade their bots.


For starters, he was the former president of PayPal. And he once founded a mobile media monetization firm. And he also founded a company that facilitated mobile phone payments. And then he helped Facebook acquire Braintree, which invented Venmo. And then he invented Messenger’s P2P payment platform. And then he was appointed to the board of directors at Coinbase.
Chatbots are a great way to answer customer questions. According to a case study, Amtrak uses chatbots to answer roughly 5,000,000 questions a year. Not only are the questions answered promptly, but Amtrak saved $1,000,000 in customer service expenses in the year the study was conducted. It also experienced a 25 percent increase in travel bookings.
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.

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.


Ein Chatterbot, Chatbot oder kurz Bot ist ein textbasiertes Dialogsystem, welches das Chatten mit einem technischen System erlaubt. Er hat je einen Bereich zur Textein- und -ausgabe, über die sich in natürlicher Sprache mit dem dahinterstehenden System kommunizieren lässt. Chatbots können, müssen aber nicht in Verbindung mit einem Avatar benutzt werden. Technisch sind Bots näher mit einer Volltextsuchmaschine verwandt als mit künstlicher oder gar natürlicher Intelligenz. Mit der steigenden Computerleistung können Chatbot-Systeme allerdings immer schneller auf immer umfangreichere Datenbestände zugreifen und daher auch intelligente Dialoge für den Nutzer bieten. Solche Systeme werden auch als virtuelle persönliche Assistenten bezeichnet.

The most advanced bots are powered by artificial intelligence, helping it to understand complex requests, personalize responses, and improve interactions over time. This technology is still in its infancy, so most bots follow a set of rules programmed by a human via a bot-building platform. It's as simple as ordering a list of if-then statements and writing canned responses, often without needing to know a line of code.


There are obvious revenue opportunities around subscriptions, advertising and commerce. If bots are designed to save you time that you’d normally spend on mundane tasks or interactions, it’s possible they’ll seem valuable enough to justify a subscription fee. If bots start to replace some of the functions that you’d normally use a search engine like Google for, it’s easy to imagine some sort of advertising component. Or if bots help you shop, the bot-maker could arrange for a commission.


Another reason is that Facebook, which has 900 million Messenger users, is expected to get into bots. Many see this as a big potential opportunity; where Facebook goes, the rest of the industry often follows. Slack, which lends itself to bot-based services, has also grown dramatically to two million daily users, which bot makers and investors see as a potentially lucrative market.
This is where most applications of NLP struggle, and not just chatbots. Any system or application that relies upon a machine’s ability to parse human speech is likely to struggle with the complexities inherent in elements of speech such as metaphors and similes. Despite these considerable limitations, chatbots are becoming increasingly sophisticated, responsive, and more “natural.”
If you ask any marketing expert, customer engagement is simply about talking to the customer and reeling them in when the time’s right. This means being there for the user whenever they look for you throughout their lifecycle and therein lies the trick: How can you be sure you’re there at all times and especially when it matters most to the customer?
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.
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]
The classic historic early chatbots are ELIZA (1966) and PARRY (1972).[10][11][12][13] More recent notable programs include A.L.I.C.E., Jabberwacky and D.U.D.E (Agence Nationale de la Recherche and CNRS 2006). While ELIZA and PARRY were used exclusively to simulate typed conversation, many chatbots now include functional features such as games and web searching abilities. In 1984, a book called The Policeman's Beard is Half Constructed was published, allegedly written by the chatbot Racter (though the program as released would not have been capable of doing so).[14]
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