ALICE – which stands for Artificial Linguistic Internet Computer Entity, an acronym that could have been lifted straight out of an episode of The X-Files – was developed and launched by creator Dr. Richard Wallace way back in the dark days of the early Internet in 1995. (As you can see in the image above, the website’s aesthetic remains virtually unchanged since that time, a powerful reminder of how far web design has come.) 
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.
The bot itself is only part of a larger system that provides it with the latest data and ensures its proper operation. All of these other Azure resources — data orchestration services such as Data Factory, storage services such as Cosmos DB, and so forth — must be deployed. Azure Resource Manager provides a consistent management layer that you can access through the Azure portal, PowerShell, or the Azure CLI. For speed and consistency, it's best to automate your deployment using one of these approaches.
Perhaps the most important aspect of implementing a chatbot is selecting the right natural language processing (NLP) engine. If the user interacts with the bot through voice, for example, then the chatbot requires a speech recognition engine. Business owners also have to decide whether they want structured or unstructured conversations. Chatbots built for structured conversations are highly scripted, which simplifies programming but restricts the kinds of things that the users can ask.

Two trends — the exploding popularity of mobile messaging apps and advances in artificial intelligence — are coinciding to enable a new generation of tools that enable brands to communicate with customers in powerful new ways at reduced cost. Retailers and technology firms are experimenting with chatbots, powered by a combination of machine learning, natural language processing, and live operators, to provide customer service, sales support, and other commerce-related functions.
In other words, bots solve the thing we loathed about apps in the first place. You don't have to download something you'll never use again. It's been said most people stick to five apps. Those holy grail spots? They're increasingly being claimed by messaging apps. Today, messaging apps have over 5 billion monthly active users, and for the first time, people are using them more than social networks.
Love them or hate them, chatbots are here to stay. Chatbots have become extraordinarily popular in recent years largely due to dramatic advancements in machine learning and other underlying technologies such as natural language processing. Today’s chatbots are smarter, more responsive, and more useful – and we’re likely to see even more of them in the coming years.
“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.”
With the help of equation, word matches are found for given some sample sentences for each class. Classification score identifies the class with the highest term matches but it also has some limitations. The score signifies which intent is most likely to the sentence but does not guarantee it is the perfect match. Highest score only provides the relativity base.
Automation will be central to the next phase of digital transformation, driving new levels of customer value such as faster delivery of products, higher quality and dependability, deeper personalization, and greater convenience. Last year, Forrester predicted that automation would reach a tipping point — altering the workforce, augmenting employees, and driving new levels of customer value. Since then, […]
Like most of the Applications, the Chatbot is also connected to the Database. The knowledge base or the database of information is used to feed the chatbot with the information needed to give a suitable response to the user. Data of user’s activities and whether or not your chatbot was able to match their questions, is captured in the data store. NLP translates human language into information with a combination of patterns and text that can be mapped in the real time to find applicable responses.

1. AI-based: these ones really rely on training and are fairly complicated to set up. You train the chatbot to understand specific topics and tell your users which topics your chatbot can engage with. AI chatbots require all sorts of fall back and intent training. For example, let’s say you built a doctor chatbot (off the top of my head because I am working on one at the moment), it would have to understand that “i have a headache” and “got a headache” and “my head hurts” are the same intent. The user is free to engage and the chatbot has to pick things up.


Getting the remaining values (information that user would have provided to bot’s previous questions, bot’s previous action, results of the API call etc.,) is little bit tricky and here is where the dialogue manager component takes over. These feature values will need to be extracted from the training data that the user will define in the form of sample conversations between the user and the bot. These sample conversations should be prepared in such a fashion that they capture most of the possible conversational flows while pretending to be both an user and a bot.

Chatbots could be used as weapons on the social networks such as Twitter or Facebook. An entity or individuals could design create a countless number of chatbots to harass people. They could even try to track how successful their harassment is by using machine-learning-based methods to sharpen their strategies and counteract harassment detection tools.

Efforts by servers hosting websites to counteract bots vary. Servers may choose to outline rules on the behaviour of internet bots by implementing a robots.txt file: this file is simply text stating the rules governing a bot's behaviour on that server. Any bot that does not follow these rules when interacting with (or 'spidering') any server should, in theory, be denied access to, or removed from, the affected website. If the only rule implementation by a server is a posted text file with no associated program/software/app, then adhering to those rules is entirely voluntary – in reality there is no way to enforce those rules, or even to ensure that a bot's creator or implementer acknowledges, or even reads, the robots.txt file contents. Some bots are "good" – e.g. search engine spiders – while others can be used to launch malicious and harsh attacks, most notably, in political campaigns.[2]

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.

In 1950, Alan Turing's famous article "Computing Machinery and Intelligence" was published, 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:

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.
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, for one, has reportedly launched a chatbot named Mila to automate certain simple yet time-consuming processes when requesting for a sick leave.[24] 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 Zuckerberg unveiled that Messenger would allow chatbots into the app.[25]

“The chat space is sort of the last unpolluted space [on your phone],” said Sam Mandel, who works at the startup studio Betaworks and is also building a weather bot for Slack called Poncho. “It’s like the National Park of people’s online experience. Right now, the way people use chat services, it’s really a good private space that you control.” (That, of course, could quickly go sour if early implementations are too spammy or useless.)
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]
A malicious use of bots is the coordination and operation of an automated attack on networked computers, such as a denial-of-service attack by a botnet. Internet bots can also be used to commit click fraud and more recently have seen usage around MMORPG games as computer game bots.[citation needed] A spambot is an internet bot that attempts to spam large amounts of content on the Internet, usually adding advertising links. More than 94.2% of websites have experienced a bot attack.[2]
Having a conversation with a computer might have seemed like science fiction even a few years ago. But now, most of us already use chatbots for a variety of tasks. For example, as end users, we ask the virtual assistant on our smartphones to find a local restaurant and provide directions. Or, we use an online banking chatbot for help with a loan application.

Although NBC Politics Bot was a little rudimentary in terms of its interactions, this particular application of chatbot technology could well become a lot more popular in the coming years – particularly as audiences struggle to keep up with the enormous volume of news content being published every day. The bot also helped NBC determine what content most resonated with users, which the network will use to further tailor and refine its content to users in the future.

“I’ve seen a lot of hyperbole around bots as the new apps, but I don’t know if I believe that,” said Prashant Sridharan, Twitter’s global director of developer relations. “I don’t think we’re going to see this mass exodus of people stopping building apps and going to build bots. I think they’re going to build bots in addition to the app that they have or the service they provide.”
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.
The term "ChatterBot" was originally coined by Michael Mauldin (creator of the first Verbot, Julia) in 1994 to describe these conversational programs.[2] Today, most chatbots are 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.[3][4] 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.[5]
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