What if you’re creating a bot for a major online clothing retailer? For starters, the bot will require a greeting (“How can I help you?”) as well as a process for saying its goodbyes. In between, the bot needs to respond to inputs, which could range from shopping inquiries to questions about shipping rates or return policies, and the bot must possess a script for fielding questions it doesn’t understand.
Three main reasons are often cited for this reluctance: the first is the human side—they think users will be reluctant to engage with a bot. The other two have more to do with bots’ expected performance: there is skepticism that bots will be able to appropriately incorporate history and context to create personalized experiences and believe they won’t be able to adequately understand human input.
Furthermore, major banks today are facing increasing pressure to remain competitive as challenger banks and fintech startups crowd the industry. As a result, these banks should consider implementing chatbots wherever human employees are performing basic and time-consuming tasks. This would cut down on salary and benefit costs, improve back-office efficiency, and deliver better customer care.
Creating a comprehensive conversational flow chart will feel like the greatest hurdle of the process, but know it's just the beginning. It's the commitment to tweaking and improving in the months and years following that makes a great bot. As Clara de Soto, cofounder of Reply.ai, told VentureBeat, "You're never just 'building a bot' so much as launching a 'conversational strategy' — one that's constantly evolving and being optimized based on how users are actually interacting with it."
There was a time when even some of the most prominent minds believed that a machine could not be as intelligent as humans but in 1991, the start of the Loebner Prize competitions began to prove otherwise. The competition awards the best performing chatbot that convinces the judges that it is some form of intelligence. But despite the tremendous development of chatbots and their ability to execute intelligent behavior not displayed by humans, chatbots still do not have the accuracy to understand the context of questions in every situation each time.
The goal of intent-based bots is to solve user queries on a one to one basis. With each question answered it can adapt to the user behavior. The more data the bots receive, the more intelligent they become. Great examples of intent-based bots are Siri, Google Assistant, and Amazon Alexa. The bot has the ability to extract contextual information such as location, and state information like chat history, to suggest appropriate solutions in a specific situation.
Your bot can use other AI services to further enrich the user experience. The Cognitive Services suite of pre-built AI services (which includes LUIS and QnA Maker) has services for vision, speech, language, search, and location. You can quickly add functionality such as language translation, spell checking, sentiment analysis, OCR, location awareness, and content moderation. These services can be wired up as middleware modules in your bot to interact more naturally and intelligently with the user.
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. 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. 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. 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.
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. The second task may involve different approaches depending on the type of the response that the chatbot will generate.
We then ran a second test with a very specific topic aimed at answering very specific questions that a small segment of their audience was interested in. There, the engagement was much higher (97% open rate, 52% click-through rate on average over the duration of the test). Interestingly, drop-off went wayyy down there. At the end of this test, only 0.29% of the users had unsubscribed.
How can our business leverage technology to better and more often engage younger audiences with our products and services? H&M is one of several retailers experimenting with and leveraging chatbots as a mobile marketing opportunity – according to a report by Accenture, 32 percent of the world (a large portion of the population 29 years old and younger) uses social media daily and 80 percent of that time is via mobile.
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.
Eventually, a single chatbot could become your own personal assistant to take care of everything, whether it's calling you an Uber or setting up a meeting. Or, Facebook Messenger or another platform might let a bunch of individual chatbots to talk to you about whatever is relevant — a chatbot from Southwest Airlines could tell you your flight's delayed, another chatbot from FedEx could tell you your package is on the way, and so on.
Several studies accomplished by analytics agencies such as Juniper or Gartner  report significant reduction of cost of customer services, leading to billions of dollars of economy in the next 10 years. Gartner predicts an integration by 2020 of chatbots in at least 85% of all client's applications to customer service. Juniper's study announces an impressive amount of $8 billion retained annually by 2022 due to the use of chatbots.