This document discusses the basics of language understanding and chatbots. It covers how language begins with shared concepts and references between people. It also discusses how conversations have implicit rules and coordination of meaning. The document then discusses the current state of chatbots, including purposeless mimicry agents, intention-based agents, and conversational agents. It provides some facts about how users interact with bots, including preferences for user interface controls over text or voice, and how search capabilities can benefit bots. The document stresses starting simple with bots and considering business needs over passing conversational tests.