A chatbot is an artificial intelligence (AI) program that simulates interactive human conversation by using key pre-calculated user phrases and auditory or text-based signals. Chatbots are frequently used for basic customer service and marketing systems that frequent social networking hubs and instant messaging (IM) clients. They are also often included in operating systems as intelligent virtual assistants.

Artificial Intelligence is currently being deployed in customer service to both augment and replace human agents - with the primary goals of improving the customer experience and reducing human customer service costs. While the technology is not yet able to perform all the tasks a human customer service representative could, many consumer requests are very simple ask that sometimes be handled by current AI technologies without human input.


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.

Kik Messenger, which has 275 million registered users, recently announced a bot store. This includes one bot to send people Vine videos and another for getting makeup suggestions from Sephora. Twitter has had bots for years, like this bot that tweets about earthquakes as soon as they’re registered or a Domino’s bot that allows you to order a pizza by tweeting a pizza emoji.
Creating a comprehensive conversational flow chart will feel like the greatest hurdle of the process, but know it's just the beginning. It's the commitment to tweaking and improving in the months and years following that makes a great bot. As Clara de Soto, cofounder of Reply.ai, told VentureBeat, "You're never just 'building a bot' so much as launching a 'conversational strategy' — one that's constantly evolving and being optimized based on how users are actually interacting with it."

Want to initiate the conversation with customers from your Facebook page rather than wait for them to come to you? Facebook lets you do that. You can load email addresses and phone numbers from your subscriber list into custom Facebook audiences. To discourage spam, Facebook charges a fee to use this service. You can then send a message directly from your page to the audience you created.
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.
Over the past year, Forrester clients have been brimming with questions about chatbots and their role in customer service. In fact, in that time, more than half of the client inquiries I have received have touched on chatbots, artificial intelligence, natural language understanding, machine learning, and conversational self-service. Many of those inquiries were of the […]
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.
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]
To be more specific, understand why the client wants to build a chatbot and what the customer wants their chatbot to do. Finding answers to this query will guide the designer to create conversations aimed at meeting end goals. When the designer knows why the chatbot is being built, they are better placed to design the conversation with the chatbot.
Intents: It is basically the action chatbot should perform when the user say something. For instance, intent can trigger same thing if user types “I want to order a red pair of shoes”, “Do you have red shoes? I want to order them” or “Show me some red pair of shoes”, all of these user’s text show trigger single command giving users options for Red pair of shoes.
1. Define the goals. What should your chatbot do? Clearly indicate the list of functions your chatbot needs to perform. 2. Choose a channel to interact with your customers. Be where your clients prefer to communicate — your website, mobile app, Facebook Messenger, WhatsApp or other messaging platform. 3. Choose the way of creation. There are two of them: using readymade chat bot software or building a custom bot from scratch. 4. Create, customize and launch. Describe the algorithm of its actions, develop a database of answers and test the work of the chatbot. Double check everything before showing your creation to potential customers.
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.
Canadian and US insurers have a lot on their plates this year.  They’re not just grappling with extreme weather, substantial underwriting losses from all those motor vehicle claims, but also rising customer expectations and an onslaught of fintech disruptors.  These disruptors are spurring lots of activity in insurance digital labs, insurance venture capital arms, and […]
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.
Through Amazon’s developer platform for the Echo (called Alexa Skills), developers can develop “skills” for Alexa which enable her to carry out new types of tasks. Examples of skills include playing music from your Spotify library, adding events to your Google Calendar, or querying your credit card balance with Capital One — you can even ask Alexa to “open Dominoes and place my Easy Order” and have pizza delivered without even picking up your smartphone. Now that’s conversational commerce in action.
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.
Creating a comprehensive conversational flow chart will feel like the greatest hurdle of the process, but know it's just the beginning. It's the commitment to tweaking and improving in the months and years following that makes a great bot. As Clara de Soto, cofounder of Reply.ai, told VentureBeat, "You're never just 'building a bot' so much as launching a 'conversational strategy' — one that's constantly evolving and being optimized based on how users are actually interacting with it."

The fact that you can now run ads directly to Messenger is an enormous opportunity for any business. This skips the convoluted and leaky process of trying to acquire someone's email address to nurture them outside of Facebook's platform. Instead, you can retain the connection with someone inside Facebook and improve the overall conversion rates to receiving an engagement.
Context: When a NLU algorithm analyzes a sentence, it does not have the history of the user conversation. It means that if it receives the answer to a question it has just asked, it will not remember the question. For differentiating the phases during the chat conversation, it’s state should be stored. It can either be flags like “Ordering Pizza” or parameters like “Restaurant: ‘Dominos’”. With context, you can easily relate intents with no need to know what was the previous question.
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.
By Ina|2019-04-01T16:05:49+02:00March 21st, 2017|Categories: Automation, Chatbots & AI|Tags: AI, artificial intelligence, automated customer communication, Automation, Bot, bots, chatbot, Chatbots, Customized Chatbots, Facebook Messenger, how do chatbots work, Instant Messaging, machine learning, onlim, rules, what are chatbots|Comments Off on How Do Chatbots Work?

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.

Artificial Intelligence is currently being deployed in customer service to both augment and replace human agents - with the primary goals of improving the customer experience and reducing human customer service costs. While the technology is not yet able to perform all the tasks a human customer service representative could, many consumer requests are very simple ask that sometimes be handled by current AI technologies without human input.
It's fair to say that I'm pretty obsessed with chatbots right now. There are some great applications popping up from brands that genuinely add value to the end consumer, and early signs are showing that consumers are actually responding really well to them. For those of you who aren't quite sure what I'm talking about, here's a quick overview of what a chatbot is:
Kik Messenger, which has 275 million registered users, recently announced a bot store. This includes one bot to send people Vine videos and another for getting makeup suggestions from Sephora. Twitter has had bots for years, like this bot that tweets about earthquakes as soon as they’re registered or a Domino’s bot that allows you to order a pizza by tweeting a pizza emoji.
In sales, chatbots are being used to assist consumers shopping online, either by answering noncomplex product questions or providing helpful information that the consumer could later search for, including shipping price and availability. Chatbots are also used in service departments, assisting service agents in answering repetitive requests. Once a conversation gets too complex for a chatbot, it will be transferred to a human service agent .
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.
It didn’t take long, however, for Turing’s headaches to begin. The BabyQ bot drew the ire of Chinese officials by speaking ill of the Communist Party. In the exchange seen in the screenshot above, one user commented, “Long Live the Communist Party!” In response, BabyQ asked the user, “Do you think that such a corrupt and incompetent political regime can live forever?”
Say you want to build a bot that tells the current temperature. The dialog for the bot only needs coding to recognize and report the requested location and temperature. To do this, the bot needs to pull data from the API of the local weather service, based on the user’s location, and to send that data back to the user—basically, a few lines of templatable code and you’re done.
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.

3. Now, since ours is a conversational AI bot, we need to keep track of the conversations happened thus far, to predict an appropriate response. For this purpose, we need a dictionary object that can be persisted with information about the current intent, current entities, persisted information that user would have provided to bot’s previous questions, bot’s previous action, results of the API call (if any). This information will constitute our input X, the feature vector. The target y, that the dialogue model is going to be trained upon will be ‘next_action’ (The next_action can simply be a one-hot encoded vector corresponding to each actions that we define in our training data).


The chatbot is trained to translate the input data into a desired output value. When given this data, it analyzes and forms context to point to the relevant data to react to spoken or written prompts. Looking into deep learning within AI, the machine discovers new patterns in the data without any prior information or training, then extracts and stores the pattern.
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.”
Tay, an AI chatbot that learns from previous interaction, caused major controversy due to it being targeted by internet trolls on Twitter. The bot was exploited, and after 16 hours began to send extremely offensive Tweets to users. This suggests that although the bot learnt effectively from experience, adequate protection was not put in place to prevent misuse.[56]
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