A bot is software that is designed to automate the kinds of tasks you would usually do on your own, like making a dinner reservation, adding an appointment to your calendar or fetching and displaying information. The increasingly common form of bots, chatbots, simulate conversation. They often live inside messaging apps — or are at least designed to look that way — and it should feel like you’re chatting back and forth as you would with a human.

Magic, launched in early 2015, is one of the earliest examples of conversational commerce by launching one of the first all-in-one intelligent virtual assistants as a service. Unique in that the service does not even have an app (you access it purely via SMS), Magic promises to be able to handle virtually any task you send it — almost like a human executive assistant. Based on user and press accounts, Magic seems to be able to successfully carry out a variety of odd tasks from setting up flight reservations to ordering hard-to-find food items.

When considering potential uses, first assess the impact on resources. There are two options here: replacement or empowerment. Replacement is clearly easier as you don’t need to consider integration with existing processes and you can build from scratch. Empowerment enhances an existing process by making it more flexible, accommodating, accessible and simple for users.
The chatbot uses keywords that users type in the chat line and guesses what they may be looking for. For example, if you own a restaurant that has vegan options on the menu, you might program the word “vegan” into the bot. Then when users type in that word, the return message will include vegan options from the menu or point out the menu section that features these dishes.
A chatbot (sometimes referred to as a chatterbot) is programming that simulates the conversation or "chatter" of a human being through text or voice interactions. Chatbot virtual assistants are increasingly being used to handle simple, look-up tasks in both business-to-consumer (B2C) and business-to-business (B2B) environments. The addition of chatbot assistants not only reduces overhead costs by making better use of support staff time, it also allows companies to provide a level of customer service during hours when live agents aren't available.
Ursprünglich rein textbasiert, haben sich Chatbots durch immer stärker werdende Spracherkennung und Sprachsynthese weiterentwickelt und bieten neben reinen Textdialogen auch vollständig gesprochene Dialoge oder einen Mix aus beidem an. Zusätzlich können auch weitere Medien genutzt werden, beispielsweise Bilder und Videos. Gerade mit der starken Nutzung von mobilen Endgeräten (Smartphones, Wearables) wird diese Möglichkeit der Nutzung von Chatbots weiter zunehmen (Stand: Nov. 2016).[10] Mit fortschreitender Verbesserung sind Chatbots dabei nicht nur auf wenige eingegrenzte Themenbereiche (Wettervorhersage, Nachrichten usw.) begrenzt, sondern ermöglichen erweiterte Dialoge und Dienstleistungen für den Nutzer. Diese entwickeln sich so zu Intelligenten Persönlichen Assistenten.
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2a : a computer program that performs automatic repetitive tasks : agent sense 5 Several shopping "bots" will track down prices for on-line merchandise from a variety of vendors.— Sam Vincent Meddis especially : one designed to perform a malicious action These bot programs churn away all day and night, prodding at millions of random IP addresses looking for holes to crawl through. — Jennifer Tanaka
Operator calls itself a “request network” aiming to “unlock the 90% of commerce that’s not on the internet.” The Operator app, developed by Uber co-founder Garrett Camp, connects you with a network of “operators” who act like concierges who can execute any shopping-related request. You can order concert tickets, get gift ideas, or even get interior design recommendations for new furniture. Operator seems to be positioning itself towards “high consideration” purchases, bigger ticket purchases requiring more research and expertise, where its operators can add significant value to a transaction.
This kind of thinking has lead me to develop a bot where the focus is as a medium for content rather than a subsitute for intelligence. So users create content much as conventional author, (but with text stored in spreadsheets rather than anywhere else). Very little is expected from the bot in terms of human behavious such as “learning”, “empathy”, “memory” and character”. Does it work?

As artificial intelligence continues to evolve (it’s predicted that AI could double economic growth rates by 2035), conversational bots are becoming a powerful tool for businesses worldwide. By 2020, it’s predicted that 85% of customers’ relationship with businesses will be handled without engaging a human at all. Businesses are even abandoning their mobile apps to adopt conversational bots.
Note — If the plan is to build the sample conversations from the scratch, then one recommended way is to use an approach called interactive learning. We will not go into the details of the interactive learning here, but to put it in simple terms and as the name suggests, it is a user interface application that will prompt the user to input the user request and then the dialogue manager model will come up with its top choices for predicting the best next_action, prompting the user again to confirm on its priority of learned choices. The model uses this feedback to refine its predictions for next time (This is like a reinforcement learning technique wherein the model is rewarded for its correct predictions).
Screenless conversations are expected to dominate even more as internet connectivity and social media is poised to expand. From the era of Eliza to Alice to today’s conversational bots, we have come a long way. Conversational bots are changing the way businesses and programs interact with us. They have simplified many aspects of device use and the daily grind, and made interactions between customers and businesses more efficient.
There are multiple chatbot development platforms available if you are looking to develop Facebook Messenger bot. While each has their own pros and cons, Dialogflow is one strong contender. Offering one of the best NLU (Natural Language Understanding) and context management, Dialogflow makes it very easy to create Facebook Messenger bot. In this tutorial, we’ll…
However, since Magic simply connects you with human operators who carry our your requests, the service does not leverage AI to automate its processes, and thus the service is expensive and thus may lack mainstream potential. The company recently launched a premium service called Magic+ which gets you higher level service for $100 per hour, indicating that it sees its market among business executives and other wealthy customers.
Chatbots have come a long way since then. They are built on AI technologies, including deep learning, natural language processing and  machine learning algorithms, and require massive amounts of data. The more an end user interacts with the bot, the better voice recognition becomes at predicting what the appropriate response is when communicating with an end user.
How: this involves creating a basic content block within Chatfuel that has a discount code within it. Instead of giving all users of the bot the same experience, you can direct them through to specific parts of the conversation (or 'blocks'). Using the direct link to your content block, you'll be able to create CTAs on your website that direct people straight into Messenger to get a discount code (more info here).
2017 was the year that AI and chatbots took off in business, not just in developed nations, but across the whole world. Sage have reported that this global trend is boosting international collaboration between startups across all continents, such as the European Commission-backed Startup Europe Comes to Africa (SEC2A) which was held in November 2017.

Indeed, this is one of the key benefits of chatbots – providing a 24/7/365 presence that can give prospects and customers access to information no matter when they need it. This, in turn, can result in cost-savings for companies that deploy chatbots, as they cut down on the labour-hours that would be required for staff to manage a direct messaging service every hour of the week.
Interestingly, the as-yet unnamed conversational agent is currently an open-source project, meaning that anyone can contribute to the development of the bot’s codebase. The project is still in its earlier stages, but has great potential to help scientists, researchers, and care teams better understand how Alzheimer’s disease affects the brain. A Russian version of the bot is already available, and an English version is expected at some point this year.
Pop-culture references to Skynet and a forthcoming “war against the machines” are perhaps a little too common in articles about AI (including this one and Larry’s post about Google’s RankBrain tech), but they do raise somewhat uncomfortable questions about the unexpected side of developing increasingly sophisticated AI constructs – including seemingly harmless chatbots.

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.

Morph.ai is an AI-powered chatbot. It works across messengers, websites, Android apps, and iOS apps. Morph.ai lets you automate up to 70 percent of your customer support. It can also integrate with your existing CRM and support tools. Plus, it can learn new queries and responses over time. You can add cards, carousels, and quick replies to enrich your conversations. It looks like this
The plugin aspect to Chatfuel is one of the real bonuses. You can link up to all sorts of different services to add richer content to the conversations that you're having. This includes linking up to Twitter, Instagram and YouTube, as well as being able to request that the user share their location, serve video and audio content, and build out custom attributes that can be used to segment users based on their inputs. This last part is a killer feature.
Earlier, I made a rather lazy joke with a reference to the Terminator movie franchise, in which an artificial intelligence system known as Skynet becomes self-aware and identifies the human race as the greatest threat to its own survival, triggering a global nuclear war by preemptively launching the missiles under its command at cities around the world. (If by some miracle you haven’t seen any of the Terminator movies, the first two are excellent but I’d strongly advise steering clear of later entries in the franchise.)
Oftentimes, brands have a passive approach to customer interactions. They only communicate with their audience once a consumer has contacted them first. A chatbot automatically sends a welcome notification when a person arrives on your website or social media profile making the user aware of your chatbots presence. This makes you seem more proactive, thus enhancing your brand's reputation and can even increase interactions, having a positive effect on your sales numbers, too.
These are hardly ideas of Hollywood’s science fiction. Even when the Starbucks bot can sound like Scarlett Johansson’s Samantha, the public will be unimpressed — we would prefer a real human interaction. Yet the public won’t have a choice; efficient task-oriented dialog agents will be the automatic vending machines and airport check-in kiosks of the near future.

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.
Next, identify the data sources that will enable the bot to interact intelligently with users. As mentioned earlier, these data sources could contain structured, semi-structured, or unstructured data sets. When you're getting started, a good approach is to make a one-off copy of the data to a central store, such as Cosmos DB or Azure Storage. As you progress, you should create an automated data ingestion pipeline to keep this data current. Options for an automated ingestion pipeline include Data Factory, Functions, and Logic Apps. Depending on the data stores and the schemas, you might use a combination of these approaches.
Designing for conversational interfaces represents a big shift in the way we are used to thinking about interaction. Chatbots have less signifiers and affordances than websites and apps – which means words have to work harder to deliver clarity, cohesion and utility for the user. It is a change of paradigm that requires designers to re-wire their brain, their deliverables and their design process to create successful bot experiences.

Another option is to integrate your own custom AI service. This approach is more complex, but gives you complete flexibility in terms of the machine learning algorithm, training, and model. For example, you could implement your own topic modeling and use algorithm such as LDA to find similar or relevant documents. A good approach is to expose your custom AI solution as a web service endpoint, and call the endpoint from the core bot logic. The web service could be hosted in App Service or in a cluster of VMs. Azure Machine Learning provides a number of services and libraries to assist you in training and deploying your models.
All of these conversational technologies employ natural-language-recognition capabilities to discern what the user is saying, and other sophisticated intelligence tools to determine what he or she truly needs to know. These technologies are beginning to use machine learning to learn from interactions and improve the resulting recommendations and responses.
The chatbot design is the process that defines the interaction between the user and the chatbot.[31] The chatbot designer will define the chatbot personality, the questions that will be asked to the users, and the overall interaction.[32] [33] It can be viewed as a subset of the conversational design.In order to speed up this process, designers can use dedicated chatbot design tools, that allow for immediate preview, team collaboration and video export.[34] An important part of the chatbot design is also centered around user testing. User testing can be performed following the same principles that guide the user testing of graphical interfaces.[35]
All of these conversational technologies employ natural-language-recognition capabilities to discern what the user is saying, and other sophisticated intelligence tools to determine what he or she truly needs to know. These technologies are beginning to use machine learning to learn from interactions and improve the resulting recommendations and responses.
In 2000 a chatbot built using this approach was in the news for passing the “Turing test”, built by John Denning and colleagues. It was built to emulate the replies of a 13 year old boy from Ukraine (broken English and all). I met with John in 2015 and he made no false pretenses about the internal workings of this automaton. It may have been “brute force” but it proved a point: parts of a conversation can be made to appear “natural” using a sufficiently large definition of patterns. It proved Alan Turing’s assertion, that this question of a machine fooling humans was “meaningless”.
The fact that you can now run ads directly to Messenger is an enormous opportunity for any business. This skips the convoluted and leaky process of trying to acquire someone's email address to nurture them outside of Facebook's platform. Instead, you can retain the connection with someone inside Facebook and improve the overall conversion rates to receiving an engagement.
H&M’s consistent increased sales over the past year and its August announcement to launch an eCommerce presence in Canada and South Korea during the fall of 2016, along with 11 new H&M online markets (for a total of 35 markets by the end of the year), appear to signify positive results for its chatbot implementation (though direct correlations are unavailable on its website).
The classic historic early chatbots are ELIZA (1966) and PARRY (1972).[10][11][12][13] 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).[14]