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Independent analyst firm CCM predicts that "virtual agent implementations will be an industry standard in 3 to 5 years, a critical component in customer services and even the main point of contact in 2014".
The study, conducted in Q1 2011, surveyed 57 global leaders on their plans for using virtual agents as part of their customer service strategy. The group predicted:
- 100% increase in virtual agents in 2011
- 400% increase in virtual agents by 2014
Virtual Agents (or chatbots) are computer applications that can act as a first line of support providing instant responses to questions, via your website and facebook pages, without the need for staff intervention. They can answer queries, using natural language, about your organisation and services, reducing pressure on your resources.
A majority of the respondents were interested in using the virtual agents for "right channeling" purposes as well as:
- integration of the virtual agents with live chat (66%)
- as first point of contact for all online customer interactions (56%)
This latest report continues to adds independent documentary evidence of how using a natural language chatbot can be cheaper and more effective than some of the alternatives. Indeed the survey also captured reasons for using virtual agents /chatbots which included:
- 67% note eDeflection from higher cost customer service channels
- 51% believe that virtual agents will increase their "customer requests" handling capacity.
- 36% believe virtual agents will provide insight into user trends to determine and optimize new service issues as they arise.
- 33% believe that VAs will address search limitations.
Daden have always advocated the advantages of using chatbots, re-releasing their own white paper on the subject last year. This latest report adds to the increasing number of independent studies and continues to reaffirm that virtual agents, or chatbots, are here to stay!
A chatbot or virtual receptionist is a computer-controlled application that has the ability of answering questions about your company, products and services immediately.
Here is the result of a recent conversation that our chatbot Abi, had with someone visiting our website:
User: what are you
Abi: I am chatbot or virtual customer assistant designed to help visitors to find out more about Daden
User: what
is daden
Abi: Daden is a virtual worlds and virtual
characters solution provider.
User: can
you learn
Abi: I can only learn by being
programmed at the moment
User: what
can you do
Abi: I work at Daden's offices in
central Birmingham and also on our island Daden prime in second life
User: what
is second life
Abi: Second life is a virtual world,
one that only exists on the servers of linden labs, and in the
browsers and minds of its users
User: can
i get a chatbot
Abi: If
you would like to get a quote for a chatbot for your web site or
virtual world presence please email sales@daden.co.uk and
we will discuss your requirements with you
User: thanks
Abi: Good
User: byb
Abi: Sorry,
I only have limited knowledge. I can only talk about Daden
User: bye
Abi: Bye.
I'd be grateful if you would fill in a short survey on me. Link
below.
Daden check Abi's conversation logs frequently and update her regularly and this conversation is a good example that shows how people do build a rapport with a chatbot and are willing to talk to it - and thank it too!
Daden have given Abi a personality outside of her main duties - which are to talk about Daden and to point people to pages on the website. Here's an example:
User: i
want us to be best friends.
Abi: My best friend is Halo Rossini
but I do have other friends
User: can
i be your friend too?
Abi: Oh dear. I'm sure we could
be but I'm at work I'd rather concentrate on answering questions
about Daden's services and products
User: so
you keep saying, but i want to chat about something else.
Abi: I
like to talk about what we do at Daden
User: yes
i know, but i want to talk about how lovely you are.
Abi: Say
again? I only have limited knowledge. I can only talk about Daden
Most organisations we work with choose not to give their chatbots a personality but use their chatbots to act as a virtual assistant available 24hrs a day to guide people around their website or act as an FAQ. Research in the US (where chatbot use is more advanced) has shown that the average cost-per-contact using a chatbot is under 60p compared to over £3.50 for live text-chat or over £4 for a telephone contact. Leading analyst Forrester reported in 2010 that chatbots "offer compelling business benefits, including enhancing customer experience, reducing live help costs, and driving cross-sells".
Chatbots can be placed on websites, on Facebook and inside virtual worlds. For example, Abi also lives on Daden's island, Daden Prime in Second Life, where she acts as a virtual receptionist and answers questions. One of our clients has their chatbot answering questions by SMS, email as well as via their website. It's multi-lingual too answering questions in both English and Arabic!
Talk to Abi, our Virtual Receptionist yourself here.
Daden have a white paper available to download titled: Deploying Chatbots to Customer Advantage
Click on this link to download your copy
If you'd like to learn more about chatbots or have visitors thank your website email soulla.stylianou@daden.co.uk or call us on 0121 250 5678.
They say it's not the winning that counts but the taking part. Watson managed to do both -- but perhaps the winning actually counted for less. All the indications are that Watson's win was as much about his - or its -- speed on the buzzer as for his knowledge.
As competitor Brad Rutter said, "On any given night nearly all the contestants know nearly all the answers, so it's just a matter of who masters buzzer rhythm the best."
So the impressive thing is that Watson had sufficient knowledge to be a credible contestant, the winning was secondary.

(Image courtesy IBM.)
While of course the sheer power of the computers involved and the man-decades of development count for a lot, the real key to Watson's success was in its use of semantic markup. Most chatbots (of which Watson is a specialized type) rely on matching an input pattern against a database of possible pattens, and then returning the response programmed for that pattern. This is how Pandorabots (much used in Second Life) work, and to an extent our own Discourse system. The problem is that this approach does not scale, and the bot "knows" nothing -- it just matches characters.
With a semantic approach the bot has a web of knowledge. The most pure way is to use triples, very simple relationships between an object ("sea"), an association ("has colour"), and a subject ("blue"). When these elements are then linked into an ontology of things (blue is a colour, sea is made of water, sea is a habitat, sea is a geographic feature) then the bot can begin to make deductions and links between the words in the input text.
This means he can deduce the things that the question might be alluding to, and try and map that to an answer. Watson is not the first chatbot to use semantic markup (we've also been doing similar things since 2008 but just not with IBM's resources -- see our Halo bot talking about ants and stars), but we are in no doubt that semantic representation will be key to chatbots in the future.
As to whether Watson is the future and represents a great leap for artificial intelligence, it all depends on what you are looking for. If you see AI as being about god-like bots, Terminator's Skynet, or, more prosaically, expert systems, then yes this is a step forward. Wolfram Alpha was one step towards the "global answer engine" (but Google and Wikipedia more so), and Watson is another step. But these are brute-force solutions to brute-force problems.
One of the truisms of machine intelligence is that as long as a machine is unable do a particular task, people say that the task requires intelligence. But once the machine can do it, then they say that the task didn't need intelligence after all. Chess is a good example. Once seen as almost the best measure of an "intelligent" person, after Deep Blue beat Kasparov in 1997 chess was seen as more of a brute-force problem, and no one claimed that Deep Blue (or the chess app on your smartphone) was intelligent.
The issue is that Watson is an "answer engine," not a "conversation engine," and definitely not an "artificial general intelligence."
Trying to mimic the flow of human conversation is something that still appears to be beyond our reach, and for this Watson is actually heading in the wrong direction. Human conversation is often very imprecise, even inaccurate, but it flows. If I asked Watson what 16,353 times 9,543 was he'd probably know -- but most humans wouldn't. In creating more "human" bots we actually find we have to try and dumb the computer down.
For example, in a virtual world we don't want our bot to say "you are at 123.2, 31.42, 78.12," but rather "you are standing on my foot," or "you're a couple of feet from the door." While giving IBM credit for their achievement with Watson, I'll personally be more impressed when IBM create a believable four-year-old rather than a Jeopardy champion.
These two paths, towards a global answer engine, and towards an analogue of a "real" human, are both valid, and to an extent connected, but they are different paths. And I feel that humantity will be more challenged ultimately by the possibilities of the latter than by Watson and his descendants.
This column by Daden MD David Burden originally appeared at Hypergrid Business, and is reprinted here with permission.


