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".
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%.

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.
H&M’s consistent increased sales over the past year and its August announcement to launch an eCommerce presence in Canada and South Korea during the fall of 2016, along with 11 new H&M online markets (for a total of 35 markets by the end of the year), appear to signify positive results for its chatbot implementation (though direct correlations are unavailable on its website).
In a traditional application, the user interface (UI) consists of a series of screens, and a single app or website can use one or more screens as needed to exchange information with the user. Most applications start with a main screen where users initially land, and that screen provides navigation that leads to other screens for various functions like starting a new order, browsing products, or looking for help.
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.
Authentication. Users start by authenticating themselves using whatever mechanism is provided by their channel of communication with the bot. The bot framework supports many communication channels, including Cortana, Microsoft Teams, Facebook Messenger, Kik, and Slack. For a list of channels, see Connect a bot to channels. When you create a bot with Azure Bot Service, the Web Chat channel is automatically configured. This channel allows users to interact with your bot directly in a web page. You can also connect the bot to a custom app by using the Direct Line channel. The user's identity is used to provide role-based access control, as well as to serve personalized content.
According to the Journal of Medical Internet Research, "Chatbots are [...] increasingly used in particular for mental health applications, prevention and behavior change applications (such as smoking cessation or physical activity interventions).".[48] They have been shown to serve as a cost-effective and accessible therapeutic agents for indications such as depression and anxiety.[49] A conversational agent called Woebot has been shown to significantly reduce depression in young adults.[50]
Companies most likely to be supporting bots operate in the health, communications and banking industries, with informational bots garnering the majority of attention. However, challenges still abound, even among bot supporters, with lack of skilled talent to develop and work with bots cited as a challenge in implementing solutions, followed by deployment and acquisition costs, as well as data privacy and security.
Since 2016 when Facebook allows businesses to deliver automated customer support, e-commerce guidance, content and interactive experiences through chatbots, a large variety of chatbots for Facebook Messenger platform were developed.[35] In 2016, Russia-based Tochka Bank launched the world's first Facebook bot for a range of financial services, in particularly including a possibility of making payments. [36] In July 2016, Barclays Africa also launched a Facebook chatbot, making it the first bank to do so in Africa. [37]
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.
But, as any human knows, no question or statement in a conversation really has a limited number of potential responses. There is an infinite number of ways to combine the finite number of words in a human language to say something. Real conversation requires creativity, spontaneity, and inference. Right now, those traits are still the realm of humans alone. There is still a gamut of work to finish in order to make bots as person-centric as Rogerian therapists, but bots and their creators are getting closer every day.

Chatbots and virtual assistants (VAs) may be built on artificial intelligence and create customer experiences through digital personas, but the success you realize from them will depend in large part on your ability to account for the real and human aspects of their deployment, intra-organizational impact, and customer orientation. Start by treating your bots and […]
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:

By 2022, task-oriented dialog agents/chatbots will take your coffee order, help with tech support problems, and recommend restaurants on your travel. They will be effective, if boring. What do I see beyond 2022? I have no idea. Amara’s law says that we tend to overestimate technology in the short term while underestimating it in the long run. I hope I am right about the short term but wrong about AI in 2022 and beyond! Who would object against a Starbucks barista-bot that can chat about weather and crack a good joke?
Lack contextual awareness. Not everyone has all of the data that Google has – but chatbots today lack the awareness that we expect them to have. We assume that chatbot technology will know our IP address, browsing history, previous purchases, but that is just not the case today. I would argue that many chatbots even lack basic connection to other data silos to improve their ability to answer questions.
In a particularly alarming example of unexpected consequences, the bots soon began to devise their own language – in a sense. After being online for a short time, researchers discovered that their bots had begun to deviate significantly from pre-programmed conversational pathways and were responding to users (and each other) in an increasingly strange way, ultimately creating their own language without any human input.

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.


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.
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.

Note — If the plan is to build the sample conversations from the scratch, then one recommended way is to use an approach called interactive learning. We will not go into the details of the interactive learning here, but to put it in simple terms and as the name suggests, it is a user interface application that will prompt the user to input the user request and then the dialogue manager model will come up with its top choices for predicting the best next_action, prompting the user again to confirm on its priority of learned choices. The model uses this feedback to refine its predictions for next time (This is like a reinforcement learning technique wherein the model is rewarded for its correct predictions).
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.
Furthermore, major banks today are facing increasing pressure to remain competitive as challenger banks and fintech startups crowd the industry. As a result, these banks should consider implementing chatbots wherever human employees are performing basic and time-consuming tasks. This would cut down on salary and benefit costs, improve back-office efficiency, and deliver better customer care.
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.”
As retrieved from Forbes, Salesforce’s chief scientist, Richard Socher talked in a conference about his revelations of NLP and machine translation: “I can’t speak for all chatbot deployments in the world – there are some that aren’t done very well…but in our case we’ve heard very positive feedback because when a bot correctly answers questions or fills your requirements it does it very, very fast.
Users want to ask questions in their own language, and have bots help them. A statement that sounds as straight-forward as “My login isn’t working! I haven’t been able to log into your on-line billing system” might sound straight forward to us, but to a bot, there’s a lot it needs to understand. Watson Conversation Services has learned from Wikipedia, and along with its deep learning techniques, it’s able to work out what the user is asking.

If a text-sending algorithm can pass itself off as a human instead of a chatbot, its message would be more credible. Therefore, human-seeming chatbots with well-crafted online identities could start scattering fake news that seem plausible, for instance making false claims during a presidential election. With enough chatbots, it might be even possible to achieve artificial social proof.[58][59]
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