You may remember Facebook’s big chatbot push in 2016 –  when they announced that they were opening up the Messenger platform to chatbots of all varieties. Every organization suddenly needed to get their hands on the technology. The idea of having conversational chatbot technology was enthralling, but behind all the glitz, glamour and tech sex appeal, was something a little bit less exciting. To quote Gizmodo writer, Darren Orf:
As artificial intelligence continues to evolve (it’s predicted that AI could double economic growth rates by 2035), conversational bots are becoming a powerful tool for businesses worldwide. By 2020, it’s predicted that 85% of customers’ relationship with businesses will be handled without engaging a human at all. Businesses are even abandoning their mobile apps to adopt conversational bots.
ETL. The bot relies on information and knowledge extracted from the raw data by an ETL process in the backend. This data might be structured (SQL database), semi-structured (CRM system, FAQs), or unstructured (Word documents, PDFs, web logs). An ETL subsystem extracts the data on a fixed schedule. The content is transformed and enriched, then loaded into an intermediary data store, such as Cosmos DB or Azure Blob Storage.
Not integrated. This goes hand-in-hand with the contextual knowledge, but chatbots often suffer from “death by data silo” where their access to data is limited. If a chatbot is “chatting with” a customer, they not only need to access the contextual data of their customer but also have access to every place where the answer to the customer’s question may reside. Product documentation site, customer community, different websites are all places where that answer can be.
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.

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]


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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.

I will not go into the details of extracting each feature value here. It can be referred from the documentation of rasa-core link that I provided above. So, assuming we extracted all the required feature values from the sample conversations in the required format, we can then train an AI model like LSTM followed by softmax to predict the next_action. Referring to the above figure, this is what the ‘dialogue management’ component does. Why LSTM is more appropriate? — As mentioned above, we want our model to be context aware and look back into the conversational history to predict the next_action. This is akin to a time-series model (pls see my other LSTM-Time series article) and hence can be best captured in the memory state of the LSTM model. The amount of conversational history we want to look back can be a configurable hyper-parameter to the model.


One of the first stepping stones to this future are AI-powered messaging solutions, or conversational bots. A conversational bot is a computer program that works automatically and is skilled in communicating through various digital media—including intelligent virtual agents, organizations' apps, organizations' websites, social platforms and messenger platforms. Users can interact with such bots, using voice or text, to access information, complete tasks or execute transactions. 
In 1950, Alan Turing's famous article "Computing Machinery and Intelligence" was published,[7] which proposed what is now called the Turing test as a criterion of intelligence. This criterion depends on the ability of a computer program to impersonate a human in a real-time written conversation with a human judge, sufficiently well that the judge is unable to distinguish reliably—on the basis of the conversational content alone—between the program and a real human. The notoriety of Turing's proposed test stimulated great interest in Joseph Weizenbaum's program ELIZA, published in 1966, which seemed to be able to fool users into believing that they were conversing with a real human. However Weizenbaum himself did not claim that ELIZA was genuinely intelligent, and the introduction to his paper presented it more as a debunking exercise:
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