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.’

There are different approaches and tools that you can use to develop a chatbot. Depending on the use case you want to address, some chatbot technologies are more appropriate than others. In order to achieve the desired results, the combination of different AI forms such as natural language processing, machine learning and semantic understanding may be the best option.
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.

Alternatively, think about the times you are chatting with a colleague over Slack. The need to find relevant information typically happens during conversations, and instead of having to go to a browser to start searching, you could simply summon your friendly Slack chatbot and get it to do the work for you. Think of it as your own personal podcast producer – pulling up documents, facts, and data at the drop of a hat. This concept can be translated into the virtual assistants we use on the daily. Think about an ambient assistant like Alexa or Google Home that could just be part of a group conversation. Or your trusted assistant taking notes and actions during a meeting.
“Utility gets something done following a prompt. At a higher level the more entertainment-related chatbots are able to answer all questions and get things done. Siri and Cortana you can have small talk with, as well as getting things done, so they are much harder to build. They took years and years of giant company’s efforts. Different companies that don’t have those resources, like Facebook, will build more constrained utility bots.”
The trained neural network is less code than an comparable algorithm but it requires a potentially large matrix of “weights”. In a relatively small sample, where the training sentences have 150 unique words and 30 classes this would be a matrix of 150x30. Imagine multiplying a matrix of this size 100,000 times to establish a sufficiently low error rate. This is where processing speed comes in.

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.


What began as a televised ad campaign eventually became a fully interactive chatbot developed for PG Tips’ parent company, Unilever (which also happens to own an alarming number of the most commonly known household brands) by London-based agency Ubisend, which specializes in developing bespoke chatbot applications for brands. The aim of the bot was to not only raise brand awareness for PG Tips tea, but also to raise funds for Red Nose Day through the 1 Million Laughs campaign.

What began as a televised ad campaign eventually became a fully interactive chatbot developed for PG Tips’ parent company, Unilever (which also happens to own an alarming number of the most commonly known household brands) by London-based agency Ubisend, which specializes in developing bespoke chatbot applications for brands. The aim of the bot was to not only raise brand awareness for PG Tips tea, but also to raise funds for Red Nose Day through the 1 Million Laughs campaign.
However, chatbots are not just limited to answering queries and providing basic knowledge. They can work as an aid to the teacher/instructor by identifying spelling and grammatical mistakes with precision, checking homework, assigning projects, and, more importantly, keeping track of students' progress and achievements. A human can only do so much, whereas a bot has virtually an infinite capacity to store and analyse all data.

Niki is a personal assistant that has been developed in India to perform an impressively wide variety of tasks, including booking taxis, buses, hotels, movies and events, paying utilities and recharging your phone, and even organizing laundry pickup and delivery. The application has proven to be a huge success across India and won the Deep Tech prize at the 2017 AWS Mobility Awards.
For designing a chatbot conversation, you can refer this blog — “How to design a conversation for chatbots.” Chatbot interactions are segmented into structured and unstructured interactions. As the name suggests, the structured type is more about the logical flow of information, including menus, choices, and forms into account. The unstructured conversation flow includes freestyle plain text. Conversations with family, colleagues, friends and other acquaintances fall into this segment. Developing scripts for these messages will follow suit. While developing the script for messages, it is important to keep the conversation topics close to the purpose served by the chatbot. For the designer, interpreting user answers is important to develop scripts for a conversational user interface. The designer also turns their attention to close-ended conversations that are easy to handle and open-ended conversations that allow customers to communicate naturally.

While AppleTV’s commerce capabilities are currently limited to purchasing media from iTunes, it seems likely that Siri’s capabilities would be extended to tvOS apps so app developers will be able to support voice commands from AppleTV directly within their apps. Imagine using voice commands to navigate through Netflix, browse the your Fancy shopping feed, or plan a trip using Tripadvisor on AppleTV — the potential for app developers will be significant if Apple extends its developer platform further into the home through AppleTV and Siri.


WeChat was created by Chinese holding company Tencent three years ago. The product was created by a special projects team within Tencent (who also owns the dominant desktop messaging software in China, QQ) under the mandate of creating a completely new mobile-first messaging experience for the Chinese market. In three short years, WeChat has exploded in popularity and has become the dominant mobile messaging platform in China, with approximately 700M monthly active users (MAUs).
Conversational bots can help a business’s customers with difficult transactions, plus collect data and give recommendations. For example, a conversational bot integrated to an airline’s website can answer questions regarding flight availability, rebook tickets, fees and suggest add-ons like hotels. Though a conversational bot may not be able to finish the exchanges, it could still be able to gather preliminary data and pass it on to the next available customer care agent. In both cases, the airline will save considerable time in its call center.
I will not go into the details of extracting each feature value here. It can be referred from the documentation of rasa-core link that I provided above. So, assuming we extracted all the required feature values from the sample conversations in the required format, we can then train an AI model like LSTM followed by softmax to predict the next_action. Referring to the above figure, this is what the ‘dialogue management’ component does. Why LSTM is more appropriate? — As mentioned above, we want our model to be context aware and look back into the conversational history to predict the next_action. This is akin to a time-series model (pls see my other LSTM-Time series article) and hence can be best captured in the memory state of the LSTM model. The amount of conversational history we want to look back can be a configurable hyper-parameter to the model.
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.
Clare.AI is a frontend assistant that provides modern online banking services. This virtual assistant combines machine learning algorithms with natural language processing. The Clare.AI algorithm is trained to respond to customer service FAQs, arrange appointments, conduct internal inquiries for IT and HR, and help customers control their finances via their favorite messaging apps (WhatsApp, Facebook, WeChat, etc.). It can even draw a chart showing customers how they’ve spent their money.
One of the first stepping stones to this future are AI-powered messaging solutions, or conversational bots. A conversational bot is a computer program that works automatically and is skilled in communicating through various digital media—including intelligent virtual agents, organizations' apps, organizations' websites, social platforms and messenger platforms. Users can interact with such bots, using voice or text, to access information, complete tasks or execute transactions. 
“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
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.
Artificial Intelligence is currently being deployed in customer service to both augment and replace human agents - with the primary goals of improving the customer experience and reducing human customer service costs. While the technology is not yet able to perform all the tasks a human customer service representative could, many consumer requests are very simple ask that sometimes be handled by current AI technologies without human input.
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.’
Simple chatbots, or bots, are easy to build. In fact, many coders have automated bot-building processes and templates. The majority of these processes follow simple code formulas that the designer plans, and the bots provide the responses coded into it—and only those responses. Simplistic bots (built in five minutes or less) typically respond to one or two very specific commands.
To be more specific, understand why the client wants to build a chatbot and what the customer wants their chatbot to do. Finding answers to this query will guide the designer to create conversations aimed at meeting end goals. When the designer knows why the chatbot is being built, they are better placed to design the conversation with the chatbot.
The classification score produced identifies the class with the highest term matches (accounting for commonality of words) but this has limitations. A score is not the same as a probability, a score tells us which intent is most like the sentence but not the likelihood of it being a match. Thus it is difficult to apply a threshold for which classification scores to accept or not. Having the highest score from this type of algorithm only provides a relative basis, it may still be an inherently weak classification. Also the algorithm doesn’t account for what a sentence is not, it only counts what it is like. You might say this approach doesn’t consider what makes a sentence not a given class.
This reference architecture describes how to build an enterprise-grade conversational bot (chatbot) using the Azure Bot Framework. Each bot is different, but there are some common patterns, workflows, and technologies to be aware of. Especially for a bot to serve enterprise workloads, there are many design considerations beyond just the core functionality. This article covers the most essential design aspects, and introduces the tools needed to build a robust, secure, and actively learning bot.

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:

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.

In a procedural conversation flow, you define the order of the questions and the bot will ask the questions in the order you defined. You can organize the questions into logical modules to keep the code centralized while staying focused on guiding the conversational. For example, you may design one module to contain the logic that helps the user browse for products and a separate module to contain the logic that helps the user create a new order.
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.

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.


The evolution of artificial intelligence is now in full swing and chatbots are only a faint splash on a huge wave of progress. Today the number of users of messaging apps like WhatsApp, Slack, Skype and their analogs is skyrocketing, Facebook Messenger alone has more than 1.2 billion monthly users. With the spread of messengers, virtual chatterbots that imitate human conversations for solving various tasks are becoming increasingly in demand. Chinese WeChat bots can already set medical appointments, call a taxi, send money to friends, check in for a flight and many many other.

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Web site: From Russia With Love. PDF. 2007-12-09. Psychologist and Scientific American: Mind contributing editor Robert Epstein reports how he was initially fooled by a chatterbot posing as an attractive girl in a personal ad he answered on a dating website. In the ad, the girl portrayed herself as being in Southern California and then soon revealed, in poor English, that she was actually in Russia. He became suspicious after a couple of months of email exchanges, sent her an email test of gibberish, and she still replied in general terms. The dating website is not named. Scientific American: Mind, October–November 2007, page 16–17, "From Russia With Love: How I got fooled (and somewhat humiliated) by a computer". Also available online.
A toolkit can be integral to getting started in building chatbots, so insert, BotKit. It gives a helping hand to developers making bots for Facebook Messenger, Slack, Twilio, and more. This BotKit can be used to create clever, conversational applications which map out the way that real humans speak. This essential detail differentiates from some of its other chatbot toolkit counterparts.
Closed domain chatbots focus on a specific knowledge domain, and these bots may fail to answer questions in other knowledge domains. For example, a restaurant booking conversational bot will be able to take your reservation, but may not respond to a question about the price of an air ticket. A user could hypothetically attempt to take the conversation elsewhere, however, closed domain chatbots are not required, nor often programmed to handle such cases.
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.

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 evolution of artificial intelligence is now in full swing and chatbots are only a faint splash on a huge wave of progress. Today the number of users of messaging apps like WhatsApp, Slack, Skype and their analogs is skyrocketing, Facebook Messenger alone has more than 1.2 billion monthly users. With the spread of messengers, virtual chatterbots that imitate human conversations for solving various tasks are becoming increasingly in demand. Chinese WeChat bots can already set medical appointments, call a taxi, send money to friends, check in for a flight and many many other.
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.
For example, say you want to purchase a pair of shoes online from Nordstrom. You would have to browse their site and look around until you find the pair you wanted. Then you would add the pair to your cart to go through the motions of checking out. But in the case Nordstrom had a conversational bot, you would simply tell the bot what you’re looking for and get an instant answer. You would be able to search within an interface that actually learns what you like, even when you can’t coherently articulate it. And in the not-so-distant future, we’ll even have similar experiences when we visit the retail stores.

“They’re doing things we’re simply not doing in the U.S. Imagine if you were going to start a city from scratch. Rather than having to deal with all the infrastructure created 200 years ago, you could hit the ground running on the latest technology. That’s what China’s doing — they’re accessing markets for the first time through mobile apps and payments.” — Brian Buchwald, CEO of consumer intelligence firm Bomoda
At this year’s I/O, Google announced its own Facebook Messenger competitor called Allo. Apart from some neat features around privacy and self-expression, the really interesting part of Allo is @google, the app’s AI digital assistant. Google’s assistant is interesting because the company has about a decades-long head start in machine learning applied to search, so its likely that Allo’s chatbot will be very useful. In fact, you could see Allo becoming the primary interface for interacting with Google search over time. This interaction model would more closely resemble Larry Page’s long-term vision for search, which goes far beyond the clumsy search query + results page model of today:
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.[31] 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.[32] 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.[33] 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.
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