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.
The process of building, testing and deploying chatbots can be done on cloud based chatbot development platforms[39] offered by cloud Platform as a Service (PaaS) providers such as Yekaliva, Oracle Cloud Platform, SnatchBot[40] and IBM Watson.[41] [42] [43] These cloud platforms provide Natural Language Processing, Artificial Intelligence and Mobile Backend as a Service for chatbot development.

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.

When we open our news feed and find out about yet another AI breakthrough—IBM Watson, driverless cars, AlphaGo — the notion of TODA may feel decidedly anti-climatic. The reality is that the current AI is not quite 100% turnkey-ready for TODA. This will soon change due to two key factors: 1) businesses want it, and 2) businesses have abundant data, the fuel that the current state-of-the-art machine learning techniques need to make AI work.

Customer service departments in all industries are increasing their use of chatbots, and we will see usage rise even higher in the next year as companies continue to pilot or launch their own versions of the rule-based digital assistant. What are chatbots? Forrester defines them as autonomous applications that help users complete tasks through conversation.   […]
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.
in Internet sense, c.2000, short for robot. Its modern use has curious affinities with earlier uses, e.g. "parasitical worm or maggot" (1520s), of unknown origin; and Australian-New Zealand slang "worthless, troublesome person" (World War I-era). The method of minting new slang by clipping the heads off words does not seem to be old or widespread in English. Examples (za from pizza, zels from pretzels, rents from parents) are American English student or teen slang and seem to date back no further than late 1960s.
For each kind of question, a unique pattern must be available in the database to provide a suitable response. With lots of combination on patterns, it creates a hierarchical structure. We use algorithms to reduce the classifiers and generate the more manageable structure. Computer scientists call it a “Reductionist” approach- in order to give a simplified solution, it reduces the problem.
2010 SIRI: Though Siri is considered colloquially to be a virtual assistant rather than a conversational bot, it was built off the same technologies and paved the way for all later AI bots and PAs. Siri is an intelligent personal assistant with a natural language UI to respond to questions and perform web-based service requests. Siri was part of apples IOS.
Endurance is a companion chatbot that uses neurolinguistics programming (better known as NLP) to have friendly conversations with suspected patients with Alzheimer’s and other forms of dementia. It uses AI technology to maintain a lucid conversation while simultaneously testing the human user’s ability to remember information in different ways. The chatbot encourages the user to talk about their favorite activities, memories, music, etc. This doesn’t just test the person’s memory but actively promotes their ability to recall.

The classic historic early chatbots are ELIZA (1966) and PARRY (1972).[5] More recent notable programs include A.L.I.C.E., Jabberwacky and D.U.D.E (Agence Nationale de la Recherche and CNRS 2006). While ELIZA and PARRY were used exclusively to simulate typed conversation, many chatbots now include functional features such as games and web searching abilities. In 1984, a book called The Policeman's Beard is Half Constructed was published, allegedly written by the chatbot Racter (though the program as released would not have been capable of doing so).[6]
Training a chatbot happens at much faster and larger scale than you teach a human. Humans Customer Service Representatives are given manuals and have them read it and understand. While the Customer Support Chatbot is fed with thousands of conversation logs and from those logs, the chatbot is able to understand what type of question requires what type of answers.
The front-end app you develop will interact with an AI application. That AI application—usually a hosted service—is the component that interprets user data, directs the flow of the conversation and gathers the information needed for responses. You can then implement the business logic and any other components needed to enable conversations and deliver results.
An ecommerce website’s user interface is an important part of the overall application. It has amazing product pictures for shoppers to look at. It has an advanced search tool to help the shopper locate products. It has lovely buttons users can click to add products to the shopping cart. And it has forms for entering payment information or an address.
It’s not all doom and gloom for chatbots. Chatbots are a stopgap until virtual assistants are able to tackle all of our questions and concerns, regardless of the site or platform. Virtual assistants will eventually connect to everything in your digital life, from websites to IoT-enabled devices. Rather than going through different websites and speaking to various different chatbots, the virtual assistant will be the platform for finding the answers you need. If these assistants are doing such a good job, why would you even bother to use a branded chatbot? Realistically this won’t take place for sometime, due to the fragmentation of the marketplace.
There are obvious revenue opportunities around subscriptions, advertising and commerce. If bots are designed to save you time that you’d normally spend on mundane tasks or interactions, it’s possible they’ll seem valuable enough to justify a subscription fee. If bots start to replace some of the functions that you’d normally use a search engine like Google for, it’s easy to imagine some sort of advertising component. Or if bots help you shop, the bot-maker could arrange for a commission.
“Beware though, bots have the illusion of simplicity on the front end but there are many hurdles to overcome to create a great experience. So much work to be done. Analytics, flow optimization, keeping up with ever changing platforms that have no standard. For deeper integrations and real commerce like Assist powers, you have error checking, integrations to APIs, routing and escalation to live human support, understanding NLP, no back buttons, no home button, etc etc. We have to unlearn everything we learned the past 20 years to create an amazing experience in this new browser.” — Shane Mac, CEO of Assist
Kik Messenger, which has 275 million registered users, recently announced a bot store. This includes one bot to send people Vine videos and another for getting makeup suggestions from Sephora. Twitter has had bots for years, like this bot that tweets about earthquakes as soon as they’re registered or a Domino’s bot that allows you to order a pizza by tweeting a pizza emoji.
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.’

For example, ecommerce companies will likely want a chatbot that can display products, handle shipping questions, but a healthcare chatbot would look very different. Also, while most chatbot software is continually upping the AI-ante, a company called Landbot is taking a different approach, stripping away the complexity to help create better customer conversations.

WeChat combines a chat-based interface with vast library of add-on features such as a mobile wallet, chat-based transactions, and chat-based media and interactive widgets, and exposes it all to businesses through a powerful API that enables businesses from mom and pop noodle shops to powerhouses such as Nike and Burberry to “friend” their customers and market to them in never before imaginable ways. Over 10MM businesses in China have WeChat accounts, and it is becoming increasingly popular for small businesses to only have a WeChat account, forgoing developing their own website or mobile app completely. US technology firms, in particular Facebook, are taking note.
24/7 digital support. An instant and always accessible assistant is assumed by the more and more digital consumer of the new era.[34] Unlike humans, chatbots once developed and installed don't have a limited workdays, holidays or weekends and are ready to attend queries at any hour of the day. It helps to the customer to avoid waiting of a company's agent to be available. Thus, the customer doesn't have to wait for the company executive to help them. This also lets companies keep an eye on the traffic during the non-working hours and reach out to them later.[41]
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