Yes, witty banter is a plus. But, the ultimate mission of a bot is to provide a service people actually want to use. As long as you think of your bot as just another communication channel, your focus will be misguided. The best bots harness the micro-decisions consumers experience on a daily basis and see them as an opportunity to help. Whether it's adjusting a reservation, updating the shipping info for an order, or giving medical advice, bots provide a solution when people need it most.
Through Amazon’s developer platform for the Echo (called Alexa Skills), developers can develop “skills” for Alexa which enable her to carry out new types of tasks. Examples of skills include playing music from your Spotify library, adding events to your Google Calendar, or querying your credit card balance with Capital One — you can even ask Alexa to “open Dominoes and place my Easy Order” and have pizza delivered without even picking up your smartphone. Now that’s conversational commerce in action.
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.
The most advanced bots are powered by artificial intelligence, helping it to understand complex requests, personalize responses, and improve interactions over time. This technology is still in its infancy, so most bots follow a set of rules programmed by a human via a bot-building platform. It's as simple as ordering a list of if-then statements and writing canned responses, often without needing to know a line of code.
It may be tempting to assume that users will navigate across dialogs, creating a dialog stack, and at some point will navigate back in the direction they came from, unstacking the dialogs one by one in a neat and orderly way. For example, the user will start at root dialog, invoke the new order dialog from there, and then invoke the product search dialog. Then the user will select a product and confirm, exiting the product search dialog, complete the order, exiting the new order dialog, and arrive back at the root dialog.
Back to our earlier example, if a bot doesn’t know the word trousers and a user corrects the input to pants, the bot will remember the connection between those two words in the future. The more words and connections that a bot is exposed to, the smarter it gets. This process is similar to that of human learning. Our capacity for memory and synthesis is part of what makes us unique, and we’re teaching our best tricks to bots.
Consider why someone would turn to a bot in the first place. According to an upcoming HubSpot research report, of the 71% of people willing to use messaging apps to get customer assistance, many do it because they want their problem solved, fast. And if you've ever used (or possibly profaned) Siri, you know there's a much lower tolerance for machines to make mistakes.
Short for chat robot, a computer program that simulates human conversation, or chat, through artificial intelligence. Typically, a chat bot will communicate with a real person, but applications are being developed in which two chat bots can communicate with each other. Chat bots are used in applications such as ecommerce customer service, call centers and Internet gaming. Chat bots used for these purposes are typically limited to conversations regarding a specialized purpose and not for the entire range of human communication.
Today, more than ever, instant availability and approachability matter. Which is why your presence should be dictated by your customer’s preference or the type of message your business wants to convey. Keep in mind that these can overlap or change depending on your demographic you wish to acquire or cater to. There are very few set-in-stone rules when it comes to new customers.
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.
Through Amazon’s developer platform for the Echo (called Alexa Skills), developers can develop “skills” for Alexa which enable her to carry out new types of tasks. Examples of skills include playing music from your Spotify library, adding events to your Google Calendar, or querying your credit card balance with Capital One — you can even ask Alexa to “open Dominoes and place my Easy Order” and have pizza delivered without even picking up your smartphone. Now that’s conversational commerce in action.
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.”
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.
I argued that it is super hard to scale a one-trick TODA into a general assistant that helps the user getting things done across multiple tasks. An intelligence assistant is arguably expected to hold an informal chit-chat with the user. It is this area where we are staring into perhaps the biggest challenge of AI. Observe how Samantha introduces herself to Joaquin Phoenix’s Ted in the clip below:

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.
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.
Several studies accomplished by analytics agencies such as Juniper or Gartner [34] 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.
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