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.

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.
All of these conversational technologies employ natural-language-recognition capabilities to discern what the user is saying, and other sophisticated intelligence tools to determine what he or she truly needs to know. These technologies are beginning to use machine learning to learn from interactions and improve the resulting recommendations and responses.
Chatfuel is a platform that lets you build your own Chatbot for Messenger (and Telegram) for free. The only limit is if you pass more than 100,000 conversations per month, but for most businesses that won't be an issue. No understanding of code is required and it has a simple drag-and-drop interface. Think Wix/Squarespace for bots (side note: I have zero affiliation with Chatfuel).
Kik is one of the most popular chat apps among teens with 275M MAUs and 40% of those are in the 13–24 year old demographic. In April, Kik launched its own bot store with 16 launch partners including Sephora, H&M, Vine, the Weather Channel, and Funny or Die. Using Kik’s bots currently feel like using the internet in 1994, very rough around the edges and limited functionality / usefulness. However, we’ll see how their API and bots progress over time, Kik’s popularity among an attractive demographic might convince some brands to invest in the platform.
In 2000 a chatbot built using this approach was in the news for passing the “Turing test”, built by John Denning and colleagues. It was built to emulate the replies of a 13 year old boy from Ukraine (broken English and all). I met with John in 2015 and he made no false pretenses about the internal workings of this automaton. It may have been “brute force” but it proved a point: parts of a conversation can be made to appear “natural” using a sufficiently large definition of patterns. It proved Alan Turing’s assertion, that this question of a machine fooling humans was “meaningless”.
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.
Of course, it is not so simple to create an interactive agent that the user will really trust. That’s why IM bots have not replaced all the couriers, doctors and the author of these lines. In this article, instead of talking about the future of chatbots, we will give you a short excursion into the topic of chatbots, how they work, how they can be employed and how difficult it is to create one yourself.

This chatbot aims to make medical diagnoses faster, easier, and more transparent for both patients and physicians – think of it like an intelligent version of WebMD that you can talk to. MedWhat is powered by a sophisticated machine learning system that offers increasingly accurate responses to user questions based on behaviors that it “learns” by interacting with human beings.


All of these conversational technologies employ natural-language-recognition capabilities to discern what the user is saying, and other sophisticated intelligence tools to determine what he or she truly needs to know. These technologies are beginning to use machine learning to learn from interactions and improve the resulting recommendations and responses.

Poor user experience. The bottom line: chatbots frustrate your customers if you are viewing them as a replacement for humans. Do not ever, ever try to pass of a chatbot as a human. If your chatbot suffers from any of the issues above, you’re probably creating a poor customer experience overall and an angry phone call to a poor unsuspecting call center rep.
Facebook Messenger chat bots are a way to communicate with the companies and services that you use directly through Messenger. The goal of chat bots is to minimize the time you would spend waiting on hold or sifting through automated phone menus. By using keywords and short phrases, you can get information and perform tasks all through the Messenger app. For example, you could use bots to purchase clothing, or check the weather by asking the bot questions. Bot selection is limited, but more are being added all the time. You can also interact with bots using the Facebook website.
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.
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.
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?"
This means our questions must fit with the programming they have been given.  Using our weather bot as an example once more, the question ‘Will it rain tomorrow’ could be answered easily. However if the programming is not there, the question ‘Will I need a brolly tomorrow’ may cause the chatbot to respond with a ‘I am sorry, I didn’t understand the question’ type response.

Beyond users, bots must also please the messaging apps themselves. Take Facebook Messenger. Executives have confirmed that advertisements within Discover — their hub for finding new bots to engage with — will be the main way Messenger monetizes its 1.3 billion monthly active users. If standing out among the 100,000 other bots on the platform wasn't difficult enough, we can assume Messenger will only feature bots that don't detract people from the platform.
The goal of intent-based bots is to solve user queries on a one to one basis. With each question answered it can adapt to the user behavior. The more data the bots receive, the more intelligent they become. Great examples of intent-based bots are Siri, Google Assistant, and Amazon Alexa. The bot has the ability to extract contextual information such as location, and state information like chat history, to suggest appropriate solutions in a specific situation.
In a new report from Business Insider Intelligence, we explore the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact. We outline the burgeoning bot ecosystem by segment, look at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer.
While AppleTV’s commerce capabilities are currently limited to purchasing media from iTunes, it seems likely that Siri’s capabilities would be extended to tvOS apps so app developers will be able to support voice commands from AppleTV directly within their apps. Imagine using voice commands to navigate through Netflix, browse the your Fancy shopping feed, or plan a trip using Tripadvisor on AppleTV — the potential for app developers will be significant if Apple extends its developer platform further into the home through AppleTV and Siri.
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.

A bot is software that is designed to automate the kinds of tasks you would usually do on your own, like making a dinner reservation, adding an appointment to your calendar or fetching and displaying information. The increasingly common form of bots, chatbots, simulate conversation. They often live inside messaging apps — or are at least designed to look that way — and it should feel like you’re chatting back and forth as you would with a human.
NBC Politics Bot allowed users to engage with the conversational agent via Facebook to identify breaking news topics that would be of interest to the network’s various audience demographics. After beginning the initial interaction, the bot provided users with customized news results (prioritizing video content, a move that undoubtedly made Facebook happy) based on their preferences.
The biggest benefit of having a conversational AI solution is the instant response rate. Answering queries within an hour translates into 7X increase in the likelihood of converting a lead. Customers are more likely to talk about a negative experience than a positive one. So nipping a negative review right in the bud is going to help improve your product’s brand standing.
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.

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.
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.
Simplified and scripted. Chatbot technology is being tacked on to the broader AI message, and while it’s important to note that machine learning will help chatbots get better at understand and responding to questions, it’s not going to make them the conversationalists we dream them to be. No matter what the marketing says, chatbots are entirely scripted. User says x, chatbot responds y.

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.
Google, the company with perhaps the greatest artificial intelligence chops and the biggest collection of data about you — both of which power effective bots — has been behind here. But it is almost certainly plotting ways to catch up. Google Now, its personal assistant system built within Android, serves many functions of the new wave of bots, but has had hiccups. The company is reportedly working on a chatbot that will live in a mobile messaging product and is experimenting with ways to integrate Now deeper with search.
This importance is reinforced by Jacqueline Payne, Customer Support Manager at Paperclip Digital, who says ‘Customer service isn’t a buzzword. But too many businesses treat it like it is. As a viable avenue from which to lower customer acquisition costs and cultivate a loyal customer base, chat bots can play a pivotal role in driving business growth.’
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A chatbot is a computer program that simulates human conversation through voice commands or text chats or both. Chatbot, short for chatterbot, is an Artificial Intelligence (AI) feature that can be embedded and used through any major messaging applications. There are a number of synonyms for chatbot, including "talkbot," "bot," "IM bot," "interactive agent" or "artificial conversation entity."
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