Its a chat-bot — For simplicity reasons in this article, it is assumed that the user will type in text and the bot would respond back with an appropriate message in the form of text (So, we will not be concerned with the aspects like ASR, speech recognition, speech to text, text to speech etc., Below architecture can anyways be enhanced with these components, as required).

1. AI-based: these ones really rely on training and are fairly complicated to set up. You train the chatbot to understand specific topics and tell your users which topics your chatbot can engage with. AI chatbots require all sorts of fall back and intent training. For example, let’s say you built a doctor chatbot (off the top of my head because I am working on one at the moment), it would have to understand that “i have a headache” and “got a headache” and “my head hurts” are the same intent. The user is free to engage and the chatbot has to pick things up.

Three main reasons are often cited for this reluctance: the first is the human side—they think users will be reluctant to engage with a bot. The other two have more to do with bots’ expected performance: there is skepticism that bots will be able to appropriately incorporate history and context to create personalized experiences and believe they won’t be able to adequately understand human input.
Having a conversation with a computer might have seemed like science fiction even a few years ago. But now, most of us already use chatbots for a variety of tasks. For example, as end users, we ask the virtual assistant on our smartphones to find a local restaurant and provide directions. Or, we use an online banking chatbot for help with a loan application.

This machine learning algorithm, known as neural networks, consists of different layers for analyzing and learning data. Inspired by the human brain, each layer is consists of its own artificial neurons that are interconnected and responsive to one another. Each connection is weighted by previous learning patterns or events and with each input of data, more "learning" takes place.
Despite the fact that ALICE relies on such an old codebase, the bot offers users a remarkably accurate conversational experience. Of course, no bot is perfect, especially one that’s old enough to legally drink in the U.S. if only it had a physical form. ALICE, like many contemporary bots, struggles with the nuances of some questions and returns a mixture of inadvertently postmodern answers and statements that suggest ALICE has greater self-awareness for which we might give the agent credit.
Poor user experience. The bottom line: chatbots frustrate your customers if you are viewing them as a replacement for humans. Do not ever, ever try to pass of a chatbot as a human. If your chatbot suffers from any of the issues above, you’re probably creating a poor customer experience overall and an angry phone call to a poor unsuspecting call center rep.
Some bots communicate with other users of Internet-based services, via instant messaging (IM), Internet Relay Chat (IRC), or another web interface such as Facebook Bots and Twitterbots. These chatterbots may allow people to ask questions in plain English and then formulate a proper response. These bots can often handle many tasks, including reporting weather, zip-code information, sports scores, converting currency or other units, etc.[citation needed] Others are used for entertainment, such as SmarterChild on AOL Instant Messenger and MSN Messenger.

“I believe the dreamers come first, and the builders come second. A lot of the dreamers are science fiction authors, they’re artists…They invent these ideas, and they get catalogued as impossible. And we find out later, well, maybe it’s not impossible. Things that seem impossible if we work them the right way for long enough, sometimes for multiple generations, they become possible.”
Chatbots are predicted to be progressively present in businesses and will automate tasks that do not require skill-based talents. Companies are getting smarter with touchpoints and customer service now comes in the form of instant messenger, as well as phone calls. IBM recently predicted that 85% of customer service enquiries will be handled by AI as early as 2020.[62] The call centre workers may be particularly at risk from AI.[63]
It's fair to say that I'm pretty obsessed with chatbots right now. There are some great applications popping up from brands that genuinely add value to the end consumer, and early signs are showing that consumers are actually responding really well to them. For those of you who aren't quite sure what I'm talking about, here's a quick overview of what a chatbot is:
Marketers’ interest in chatbots is growing rapidly. Globally, 57% of firms that Forrester surveyed are already using chatbots or plan to begin doing so this year. However, marketers struggle to deliver value. My latest report, Chatbots Are Transforming Marketing, shows B2C marketing professionals how to use chatbots for marketing by focusing on the discover, explore, […]
Nowadays a high majority of high-tech banking organizations are looking for integration of automated AI-based solutions such as chatbots in their customer service in order to provide faster and cheaper assistance to their clients becoming increasingly technodexterous. In particularly, chatbots can efficiently conduct a dialogue, usually substituting other communication tools such as email, phone, or SMS. In banking area their major application is related to quick customer service answering common requests, and transactional support.