This document discusses the rise of chatbots and conversational commerce. It notes that messaging apps have become very popular and chatbots provide a way for companies to engage customers in these spaces. The document outlines the history of chatbots in 2016 and discusses how technologies like artificial intelligence and machine learning will allow chatbots to have more natural language conversations. It also notes analysts' predictions that the market for chatbots and virtual assistants will grow significantly in coming years.

1. Chatbot
A Bot . . .
. . . with
which you
chat

2. About sum.ai
• B-B platform technology using Microsoft’s Bot
Framework and Cognitive Services
• Instructor Assistant
• Social Media Monitoring

3. • What’s a Chatbot?
• Why is 2016 “the year of
conversational commerce”?
• What’s coming in the next
few years?

7. Lives where people want to
spend their time
 People spend increasing
amounts of digital time on
social messaging channels
 Messaging apps have
overtaken other social apps
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8. Zuckerberg, Messenger
https://www.youtube.com/watch?v=wI_ocipycAI

10. Nadella – “Conversation as a
Platform”
https://www.youtube.com/watch?v=61ClbLFrTmc

11. Chris Messina, Uber
https://www.youtube.com/watch?v=yXy-AArae9I from 2:50 – 5:58

12. WeChat
http://www.nytimes.com/video/technology/100000004574648/china-internet-wechat.html
https://blog.intercom.com/killer-feature-messaging-no-ones-talking/

13. Demo

14. RIP Apps
As Parmy Olson at Forbes said recently
“The golden era of apps is already over”

15. History

16. http://insights.fb.com/2016/08/04/more-than-a-message-the-evolution-of-conversation/facebookiq-messaging-infographic/
“Chat apps will come to be thought of
as the new browsers; bots will be the
new websites. This is the beginning of a
new internet.”Ted Livingston, CEO at Kik

17. Where is bot technology on the hype curve?
Cognitive Expert
Advisors
Natural Language
Question
Answering
Machine Learning
Virtual Personal
Assistants
Smart Robots

19. 2016 Chatbot History
Sept
• Google Allo
• LinkedIn “toying around” with bot apps
• Oracle launches Chatbot development platform
• IBM launches Watson Virtual Agent
• Salesforce Einstein
June – Apple opens Siri to third-party app developers
May - Facebook F8 Messenger Platform announcement
May – Mary Meeker: Business Conversation Evolution
Mar – Microsoft Bot Framework
Jan - Chris Messina says 2016 will be the year of
“conversational commerce”

20. Salesforce Einstein
Powered by advanced machine learning,
deep learning, predictive analytics,
natural language processing and smart
data discovery, Einstein’s models will be
automatically customized for every single
customer, and it will learn, self-tune, and
get smarter with every interaction and
additional piece of data.

22. MIPS = Million Instructions per Second

23. $1.6B AI-powered Bot Market
From an Aug 22, 2016, WSJ Online article about Microsoft’s acquisition
of Genee, a company launched in 2014 and raised $1.45 million in
2015:
“Genee uses natural language processing, optimized decision-making
algorithms and chat bots to create a virtual personal assistant that can
automatically schedule meetings among individuals or groups . . . “
“International Data Corp. forecasts the global market for cognitive
software platforms and applications — a rough proxy for the AI market
— to grow to $16.5 billion in 2019 from $1.6 billion in 2015, with a
compound annual growth rate of 65.2%.”
http://blogs.wsj.com/cio/2016/08/22/microsofts-genee-acquisition-reflects-drive-to-ai-enable-digital-experience/
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24. Proprietary and Confidential
https://www.tractica.com/newsroom/press-releases/the-virtual-digital-assistant-market-will-reach-15-8-billion-worldwide-by-2021/
$1.6B Virtual Digital Assistant Market
Tractica forecasts
that unique
active enterprise
VDA users will
rise from 155
million in 2015 to
843 million by
2021 . . . and
that total VDA
revenue will grow
from $1.6 billion
in 2015 to
$15.8 billion in
2021.

25. Getting Started
 wit.ai
 Pandorabots
 Smooch.io
 Beep Boop (Slack)
 howdy.ai/botkit
 MS Bot Framework
 developers.facebook.com
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27. Proprietary and Confidential

29. Three Things Your Bot Should Do
1. They should solve a real problem (not a made up
problem)
2. They should not just be an app replacement—do
something bot native that you couldn’t do within
an app
3. The real transformative power of bots comes from
when there are multiple people having a
conversation that the bot participates in and adds
functionality to
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30. Starting Point
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 Know your audience (FB Messenger vs. Kik)
 Have a view into how the bot is performing in
real time (rate of messages, duration, falloff
points, etc.)
 Scripted vs. AI
 Add value before you try and sell
 Have a distribution strategy

31. Automate Repetitive Tasks
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 Support and help desk
 Personal assistants
 Team coordination
 Hiring and recruiting
 Scheduling meetings
 Book hotels/flights/travel
 Task management and reminders

32. Architecture
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33. Replicate yourself
https://replika.ai/

34. Intents
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• An Intent is the goal or purpose of the user’s
input
• Query for information
• Request to perform an action

35. Intents
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36. McKinsey Study
http://blogs.wsj.com/cio/2016/09/09/automation-technologies-and-the-future-of-work
“Automation is now increasingly applied to
activities requiring cognitive, physical, and
social capabilities that not long ago were
viewed as the exclusive domain of humans.
“In many cases, automation technology can
already match, or even exceed, the median
level of human performance required.”

37. Natural language conversations
 A human-like experience
without needing a
human presence
 Enhanced personalized
learning using artificial
intelligence and machine
learning
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