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 .
Why are chatbots important? A chatbot is often described as one of the most advanced and promising expressions of interaction between humans and machines. However, from a technological point of view, a chatbot only represents the natural evolution of a Question Answering system leveraging Natural Language Processing (NLP). Formulating responses to questions in natural language is one of the most typical Examples of Natural Language Processing applied in various enterprises’ end-use applications.
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.
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.
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.
1-800-Flowers’ 2017 first quarter results showed total revenues had increased 6.3 percent to $165.8 million, with the Company’s Gourmet Food and Gift Baskets business as a significant contributor. CEO Chris McCann stated, “…our Fannie May business recorded positive same store sales as well as solid eCommerce growth, reflecting the success of the initiatives we have implemented to enhance its performance.” While McCann doesn’t go into specifics, we assume that initiatives include the implementation of GWYN, which also seems to be supported by CB Insights’ finding: 70% of customers ordering through the chat bot were new 1-800-Flowers customers as of June 2016.
Aside from being practical and time-convenient, chatbots guarantee a huge reduction in support costs. According to IBM, the influence of chatbots on CRM is staggering.  They provide a 99 percent improvement rate in response times, therefore, cutting resolution from 38 hours to five minutes. Also, they caused a massive drop in cost per query from $15-$200 (human agents) to $1 (virtual agents). Finally, virtual agents can take up an average of 30,000+ consumers per month.
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”.
Chatbots such as ELIZA and PARRY were early attempts at creating programs that could at least temporarily fool a real human being into thinking they were having a conversation with another person. PARRY's effectiveness was benchmarked in the early 1970s using a version of a Turing test; testers only made the correct identification of human vs. chatbot at a level consistent with making a random guess.
Other companies explore ways they can use chatbots internally, for example for Customer Support, Human Resources, or even in Internet-of-Things (IoT) projects. Overstock.com, for one, has reportedly launched a chatbot named Mila to automate certain simple yet time-consuming processes when requesting for a sick leave.[31] Other large companies such as Lloyds Banking Group, Royal Bank of Scotland, Renault and Citroën are now using automated online assistants instead of call centres with humans to provide a first point of contact. A SaaS chatbot business ecosystem has been steadily growing since the F8 Conference when Facebook's Mark Zuckerberg unveiled that Messenger would allow chatbots into the app.[32] In large companies, like in hospitals and aviation organizations, IT architects are designing reference architectures for Intelligent Chatbots that are used to unlock and share knowledge and experience in the organization more efficiently, and reduce the errors in answers from expert service desks significantly.[33] These Intelligent Chatbots make use of all kinds of artificial intelligence like image moderation and natural language understanding (NLU), natural language generation (NLG), machine learning and deep learning.
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