The process of building a chatbot can be divided into two main tasks: understanding the user's intent and producing the correct answer. The first task involves understanding the user input. In order to properly understand a user input in a free text form, a Natural Language Processing Engine can be used.[36] The second task may involve different approaches depending on the type of the response that the chatbot will generate.
For as long as I can remember, email has been a fundamentally important channel for a large majority of businesses. The ability to market products directly through a channel that scales up to an incredibly high ceiling is very attractive. The only problem is that it's costing more and more money to acquire email addresses from potential customers, and the engagement from email is getting worse and worse.
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.
Each student learns and absorbs things at a different pace and requires a specific methodology of teaching. Consequently, one of the most powerful advantages of getting educated by a chatbot is its flexibility and ability to adapt to specific needs and requirements of a particular student. Chatbots can be used in a wide spectrum, be it teaching people how to build websites, learn a new language, or something more generic like teach children Math. Chatbots are capable of adapting to the speed at which each student is comfortable - without being too pushy and overwhelming.
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.

In a bot, everything begins with the root dialog. The root dialog invokes the new order dialog. At that point, the new order dialog takes control of the conversation and remains in control until it either closes or invokes other dialogs, such as the product search dialog. If the new order dialog closes, control of the conversation is returned back to the root dialog.
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 .
The progressive advance of technology has seen an increase in businesses moving from traditional to digital platforms to transact with consumers. Convenience through technology is being carried out by businesses by implementing Artificial Intelligence (AI) techniques on their digital platforms. One AI technique that is growing in its application and use is chatbots. Some examples of chatbot technology are virtual assistants like Amazon's Alexa and Google Assistant, and messaging apps, such as WeChat and Facebook messenger.

Regardless of which type of classifier is used, the end-result is a response. Like a music box, there can be additional “movements” associated with the machinery. A response can make use of external information (like weather, a sports score, a web lookup, etc.) but this isn’t specific to chatbots, it’s just additional code. A response may reference specific “parts of speech” in the sentence, for example: a proper noun. Also the response (for an intent) can use conditional logic to provide different responses depending on the “state” of the conversation, this can be a random selection (to insert some ‘natural’ feeling).
How: this involves creating a basic content block within Chatfuel that has a discount code within it. Instead of giving all users of the bot the same experience, you can direct them through to specific parts of the conversation (or 'blocks'). Using the direct link to your content block, you'll be able to create CTAs on your website that direct people straight into Messenger to get a discount code (more info here).

Another option is to integrate your own custom AI service. This approach is more complex, but gives you complete flexibility in terms of the machine learning algorithm, training, and model. For example, you could implement your own topic modeling and use algorithm such as LDA to find similar or relevant documents. A good approach is to expose your custom AI solution as a web service endpoint, and call the endpoint from the core bot logic. The web service could be hosted in App Service or in a cluster of VMs. Azure Machine Learning provides a number of services and libraries to assist you in training and deploying your models.
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).
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:
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:
Improve loyalty: By providing a responsive, efficient experience for customers, employees and partners, a chatbot will improve satisfaction and loyalty. Whether your chatbot answers questions about employees’ corporate benefits or provides answers to technical support questions, users can come away with a strengthened connection to your organization.
A virtual assistant is an app that comprehends natural, ordinary language voice commands and carries out tasks for the users. Well-known virtual assistants include Amazon Alexa, Apple’s Siri, Google Now and Microsoft’s Cortana. Also, virtual assistants are generally cloud-based programs so they need internet-connected devices and/or applications in order to work. Virtual assistants can perform tasks like adding calendar appointments, controlling and checking the status of a smart home, sending text messages, and getting directions.
Bots are also used to buy up good seats for concerts, particularly by ticket brokers who resell the tickets.[12] Bots are employed against entertainment event-ticketing sites. The bots are used by ticket brokers to unfairly obtain the best seats for themselves while depriving the general public of also having a chance to obtain the good seats. The bot runs through the purchase process and obtains better seats by pulling as many seats back as it can.
In business-to-business environments, chatbots are commonly scripted and used to respond to frequently asked questions or perform simple, repetitive calls to action. In sales, for example, a chatbot may be a quick way for sales reps to get phone numbers. Chatbots can also be used in service departments, assisting service agents in answering repetitive requests. For example, a service rep might provide the chatbot with an order number and ask when the order was shipped. Generally, once a conversation gets too complex for a chatbot, the call or text window will be transferred to a human service agent.
When you have a desperate need for a java fix with minimal human interaction and effort, this bot has you covered. According to a demo led by Gerri Martin-Flickinger, the coffee chain's chief technology officer, the bot even understands complex orders with special requests, like "double upside down macchiato half decaf with room and a splash of cream in a grande cup."
…utilizing chat, messaging, or other natural language interfaces (i.e. voice) to interact with people, brands, or services and bots that heretofore have had no real place in the bidirectional, asynchronous messaging context. The net result is that you and I will be talking to brands and companies over Facebook Messenger, WhatsApp, Telegram, Slack, and elsewhere before year’s end, and will find it normal.
Whilst the payout wasn't huge within the early days of Amazon, those who got in early are now seeing huge rewards, with 38% of shoppers starting their buying journey within Amazon (source), making it the number one retail search engine. Some studies are suggesting that Amazon is responsible for 80% of e-commerce growth for publicly traded web retailers (source).

There are a bunch of e-commerce stores taking advantage of chatbots as well. One example that I was playing with was from Fynd that enables you to ask for specific products and they'll display them to you directly within Messenger. What's more, Facebook even allows you to make payments via Messenger bots, opening up a whole world of possibility to e-commerce stores.
For every question or instruction input to the conversational bot, there must exist a specific pattern in the database to provide a suitable response. Where there are several combinations of patterns available, and a hierarchical pattern is created. In these cases, algorithms are used to reduce the classifiers and generate a structure that is more manageable. This is the “reductionist” approach—or, in other words, to have a simplified solution, it reduces the problem.

Forrester Launches New Survey On AI Adoption There’s no doubt that artificial intelligence (AI) is top of mind for executives. AI adoption started in earnest in 2016, and Forrester anticipates AI investments to continue to increase. Leaders are quickly waking up to AI’s disruptive characteristics and the need to embrace this emerging technology to remain […]
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:
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.
Chatbots are often used online and in messaging apps, but are also now included in many operating systems as intelligent virtual assistants, such as Siri for Apple products and Cortana for Windows. Dedicated chatbot appliances are also becoming increasingly common, such as Amazon's Alexa. These chatbots can perform a wide variety of functions based on user commands.
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.
However, the revelations didn’t stop there. The researchers also learned that the bots had become remarkably sophisticated negotiators in a short period of time, with one bot even attempting to mislead a researcher by demonstrating interest in a particular item so it could gain crucial negotiating leverage at a later stage by willingly “sacrificing” the item in which it had feigned interest, indicating a remarkable level of premeditation and strategic “thinking.”
Simple chatbots work based on pre-written keywords that they understand. Each of these commands must be written by the developer separately using regular expressions or other forms of string analysis. If the user has asked a question without using a single keyword, the robot can not understand it and, as a rule, responds with messages like “sorry, I did not understand”.
Using this method, you can manage multiple funnels of content upgrades, and even convince your users to take the next step in the buyer journey directly within Messenger. In the example below I just direct the user to subscribe to content recommendations via Messenger, but you could push them to book a meeting with a sales rep, take a free trial or directly purchase your product.
This is a lot less complicated than it appears. Given a set of sentences, each belonging to a class, and a new input sentence, we can count the occurrence of each word in each class, account for its commonality and assign each class a score. Factoring for commonality is important: matching the word “it” is considerably less meaningful than a match for the word “cheese”. The class with the highest score is the one most likely to belong to the input sentence. This is a slight oversimplification as words need to be reduced to their stems, but you get the basic idea.
“Today, chat isn’t yet being perceived as an engagement driver, but more of a customer service operation[…]” Horwitz writes for Chatbots Magazine. “Brands and marketers can start collecting data around the engagement and interaction of end users. Those that are successful could see higher brand recognition, turning user-level mobile moments into huge returns.”
The main challenge is in teaching a chatbot to understand the language of your customers. In every business, customers express themselves differently and each group of a target audience speaks its own way. The language is influenced by advertising campaigns on the market, the political situation in the country, releases of new services and products from Google, Apple and Pepsi among others. The way people speak depends on their city, mood, weather and moon phase. An important role in the communication of the business with customers may have the release of the film Star Wars, for example. That’s why training a chatbot to understand correctly everything the user types requires a lot of efforts.

With last year’s refresh of AppleTV, Apple brought its Siri voice assistant to the center of the UI. You can now ask Siri to play your favorite TV shows, check the weather, search for and buy specific types of movies, and a variety of other specific tasks. Although far behind Amazon’s Echo in terms of breadth of functionality, Apple will no doubt expand Siri’s integration into AppleTV, and its likely that the company will introduce a new version of AppleTV that more directly competes with the Echo, perhaps with a voice remote control that is always listening for commands.

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.


Through Knowledge Graph, Google search has already become amazingly good at understanding the context and meaning of your queries, and it is getting better at natural language queries. With its massive scale in data and years of working at the very hard problems of natural language processing, the company has a clear path to making Allo’s conversational commerce capabilities second to none.
Regardless of which type of classifier is used, the end-result is a response. Like a music box, there can be additional “movements” associated with the machinery. A response can make use of external information (like weather, a sports score, a web lookup, etc.) but this isn’t specific to chatbots, it’s just additional code. A response may reference specific “parts of speech” in the sentence, for example: a proper noun. Also the response (for an intent) can use conditional logic to provide different responses depending on the “state” of the conversation, this can be a random selection (to insert some ‘natural’ feeling).
The term "ChatterBot" was originally coined by Michael Mauldin (creator of the first Verbot, Julia) in 1994 to describe these conversational programs. Today, most chatbots are either accessed via virtual assistants such as Google Assistant and Amazon Alexa, via messaging apps such as Facebook Messenger or WeChat, or via individual organizations' apps and websites.[2] [3] Chatbots can be classified into usage categories such as conversational commerce (e-commerce via chat), analytics, communication, customer support, design, developer tools, education, entertainment, finance, food, games, health, HR, marketing, news, personal, productivity, shopping, social, sports, travel and utilities.[4]
Like apps and websites, bots have a UI, but it is made up of dialogs, rather than screens. Dialogs help preserve your place within a conversation, prompt users when needed, and execute input validation. They are useful for managing multi-turn conversations and simple "forms-based" collections of information to accomplish activities such as booking a flight.
Its a chat-bot — For simplicity reasons in this article, it is assumed that the user will type in text and the bot would respond back with an appropriate message in the form of text (So, we will not be concerned with the aspects like ASR, speech recognition, speech to text, text to speech etc., Below architecture can anyways be enhanced with these components, as required).
Facebook has jumped fully on the conversational commerce bandwagon and is betting big that it can turn its popular Messenger app into a business messaging powerhouse. The company first integrated peer-to-peer payments into Messenger in 2015, and then launched a full chatbot API so businesses can create interactions for customers to occur within the Facebook Messenger app. You can order flowers from 1–800-Flowers, browse the latest fashion and make purchases from Spring, and order an Uber, all from within a Messenger chat.
Logging. Log user conversations with the bot, including the underlying performance metrics and any errors. These logs will prove invaluable for debugging issues, understanding user interactions, and improving the system. Different data stores might be appropriate for different types of logs. For example, consider Application Insights for web logs, Cosmos DB for conversations, and Azure Storage for large payloads. See Write directly to Azure Storage.

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.
Chatbots – also known as “conversational agents” – are software applications that mimic written or spoken human speech for the purposes of simulating a conversation or interaction with a real person. There are two primary ways chatbots are offered to visitors: via web-based applications or standalone apps. Today, chatbots are used most commonly in the customer service space, assuming roles traditionally performed by living, breathing human beings such as Tier-1 support operatives and customer satisfaction reps.
Polly may be a business-focused application, but the chatbot is designed to improve workplace happiness. Using surveys and feedback, managers can keep track of how effectively their teams are working and address problems before they escalate. This doesn’t only mean organizations will run more productively, but that workers will be happier in their jobs.

No one wants to download another restaurant app and put in their credit-card information just to order. Livingston sees an opportunity in being able to come into a restaurant, scan a code, and have the restaurant bot appear in the chat. And instead of typing out all the food a person wants, the person should be able to, for example, easily order the same thing as last time and charge it to the same card.
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?”
How: instead of asking someone to fill out a form on your website to be contacted by your sales team, you direct them straight into Messenger, where you can ask them some of their contact details and any qualification questions (for example, "How many employees does your company have?"). Depending on what they respond with you could ask if they'd like to arrange a meeting with a salesperson right there and then.
More and more companies embrace chatbots to increase engagement with their audiences in the last few years. Especially for some industries including banking, insurance, and retail chatbots started to function as efficient interactive tools to increase customer satisfaction and cost-effectiveness. A study by Humley found out 43% of digital banking users are turning to chatbots – the increasing trend shows that banking customers consider the chatbot as an alternative channel to get instant information and solve their issues.
As in the prior method, each class is given with some number of example sentences. Once again each sentence is broken down by word (stemmed) and each word becomes an input for the neural network. The synaptic weights are then calculated by iterating through the training data thousands of times, each time adjusting the weights slightly to greater accuracy. By recalculating back across multiple layers (“back-propagation”) the weights of all synapses are calibrated while the results are compared to the training data output. These weights are like a ‘strength’ measure, in a neuron the synaptic weight is what causes something to be more memorable than not. You remember a thing more because you’ve seen it more times: each time the ‘weight’ increases slightly.

Chatbots can perform a range of simple transactions. Telegram bots let users transfer money, buy train tickets, book hotel rooms, and more. AI chatbots are especially sought-after in the retail industry. WholeFoods, a healthy food store chain in the US, uses a chatbot to help customers find the nearest store. The 1-800-Flowers chatbot lets customers order flowers and gifts. In the image below, you can see more ways you might use AI chatbots for your business.

The educators or class organizers can opt for chatbots to simplify daily routine tasks. Chatbots may serve as a helping hand to the teacher in dealing with the daily queries by allowing bots to answer the questions of students on a daily basis, or perhaps even check their homework. Eventually, they offer teachers more time to work with their students on a one-by-one basis.


What does the Echo have to do with conversational commerce? While the most common use of the device include playing music, making informational queries, and controlling home devices, Alexa (the device’s default addressable name) can also tap into Amazon’s full product catalog as well as your order history and intelligently carry out commands to buy stuff. You can re-order commonly ordered items, or even have Alexa walk you through some options in purchasing something you’ve never ordered before.
Social networking bots are sets of algorithms that take on the duties of repetitive sets of instructions in order to establish a service or connection among social networking users. Various designs of networking bots vary from chat bots, algorithms designed to converse with a human user, to social bots, algorithms designed to mimic human behaviors to converse with behavioral patterns similar to that of a human user. The history of social botting can be traced back to Alan Turing in the 1950s and his vision of designing sets of instructional code that passes the Turing test. From 1964 to 1966, ELIZA, a natural language processing computer program created by Joseph Weizenbaum, is an early indicator of artificial intelligence algorithms that inspired computer programmers to design tasked programs that can match behavior patterns to their sets of instruction. As a result, natural language processing has become an influencing factor to the development of artificial intelligence and social bots as innovative technological advancements are made alongside the progression of the mass spreading of information and thought on social media websites.
It won’t be an easy march though once we get to the nitty-gritty details. For example, I heard through the grapevine that when Starbucks looked at the voice data they collected from customer orders, they found that there are a few millions unique ways to order. (For those in the field, I’m talking about unique user utterances.) This is to be expected given the wild combinations of latte vs mocha, dairy vs soy, grande vs trenta, extra-hot vs iced, room vs no-room, for here vs to-go, snack variety, spoken accent diversity, etc. The AI practitioner will soon curse all these dimensions before taking a deep learning breath and getting to work. I feel though that given practically unlimited data, deep learning is now good enough to overcome this problem, and it is only a matter of couple of years until we see these TODA solutions deployed. One technique to watch is Generative Adversarial Nets (GAN). Roughly speaking, GAN engages itself in an iterative game of counterfeiting real stuffs, getting caught by the police neural network, improving counterfeiting skill, and rinse-and-repeating until it can pass as your Starbucks’ order-taking person, given enough data and iterations.
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.

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.


Forrester just released a new report on mobile and new technology priorities for marketers, based on our latest global mobile executive survey. We found out that marketers: Fail to deliver on foundational mobile experiences. Consumers’ expectations of a brand’s mobile experience have never been higher. And yet, 58% of marketers agree that their mobile services […]
Another reason is that Facebook, which has 900 million Messenger users, is expected to get into bots. Many see this as a big potential opportunity; where Facebook goes, the rest of the industry often follows. Slack, which lends itself to bot-based services, has also grown dramatically to two million daily users, which bot makers and investors see as a potentially lucrative market.
Operator calls itself a “request network” aiming to “unlock the 90% of commerce that’s not on the internet.” The Operator app, developed by Uber co-founder Garrett Camp, connects you with a network of “operators” who act like concierges who can execute any shopping-related request. You can order concert tickets, get gift ideas, or even get interior design recommendations for new furniture. Operator seems to be positioning itself towards “high consideration” purchases, bigger ticket purchases requiring more research and expertise, where its operators can add significant value to a transaction.
However, if you’re trying to develop a sophisticated bot that can understand more than a couple of basic commands, you’re heading down a potentially complicated path. More elaborately coded bots respond to various forms of user questions and responses. The bots have typically been “trained” on databases of thousands of words, queries, or sentences so that they can learn to detect lexical similarity. A good e-commerce bot “knows” that trousers are a kind of pants (if you are in the US), though this is beyond the comprehension of a simple, untrained bot.

Chatbots are often used online and in messaging apps, but are also now included in many operating systems as intelligent virtual assistants, such as Siri for Apple products and Cortana for Windows. Dedicated chatbot appliances are also becoming increasingly common, such as Amazon's Alexa. These chatbots can perform a wide variety of functions based on user commands.
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