Introduction

❖ introduction

A chatbot (originally chatterbot)is a software application or web interface that aims to mimic
human conversation through text or voice interactions. Modern chatbots are typically online and use of artificial
intelligence (AI) systems that are capable of maintaining a conversation with a user in natural language and
simulating the way a human would behave as a conversational partner. Such technologies often utilize aspects
of deep learning and natural language processing, but more simplistic chatbots have been around for decades
prior.
Recently, this field has gained widespread attention due to the popularity of OpenAI's ChatGPT (using GPT-
3 or GPT-4)released in 2022, followed by alternatives such as Microsoft's Bing Chat (which uses OpenAI's GPT-
4) and Google's Bard Such examples reflect the recent practice of such products being built based upon
broad foundational large language models that get fine-tuned so as to target specific tasks or applications (i.e.
simulating human conversation, in the case of chatbots). Chatbots can also be designed or customized to further
target even more specific situations and/or particular subject-matter domains.
A major area where chatbots have long been used is in customer service and support, such as with various sorts
of virtual assistants Companies spanning various industries have begun using the latest generative artificial
intelligence technologies to power more advanced developments in such areas. Certainly! A Chatbot, short for
"chat robot," is a computer program designed to simulate conversation with human users, typically through text-
based or voice-based interactions. Chatbots are a fascinating and rapidly evolving technology that have gained
widespread use in various industries and applications.
Chatbots are powered by natural language processing (NLP) and artificial intelligence (AI) algorithms, allowing
them to understand and generate human-like text responses. They can be deployed on websites, messaging
platforms, mobile apps, and other communication channels, making them versatile tools for businesses,
organizations, and individuals.
These AI chatbots serve a wide range of purposes, from providing customer support and automating tasks to
assisting users with information retrieval and even engaging in entertaining or informative conversations. They
have become integral in enhancing customer service, streamlining processes, and reducing response times.
As the field of AI and NLP continues to advance, chatbots are becoming increasingly sophisticated and capable
of understanding context, sentiment, and even specific user intents. With the ability to handle complex
interactions and engage users in meaningful conversations, chatbots are transforming the way we interact with
technology and the digital world.
Whether you encounter a chatbot on a website helping you with product recommendations, on a messaging app
answering your questions, or in a voice-activated assistant on your smart device, these AI-driven conversational
agents are becoming an integral part of our daily lives, shaping the future of human-computer interaction.
Certainly! Let's delve a bit deeper into the world of chatbots.
Chatbots are a subset of artificial intelligence (AI) technology that specializes in natural language processing.
They are designed to understand and generate human-like text or voice-based conversations, making them
valuable in a wide range of applications. Here are some key aspects of chatbots:
• Versatility: Chatbots can be adapted for numerous purposes, from customer support and e-commerce to
healthcare and entertainment. They're not restricted to any specific industry or function.
• Automation: Chatbots excel in automating tasks, which can save time and resources for businesses. For
instance, they can handle frequently asked questions, schedule appointments, or provide personalized
recommendations.

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 • 24/7 Availability: Chatbots are available around the clock, ensuring that users can access information or
assistance whenever they need it, even outside of regular business hours.

• Improving User Experience: They contribute to enhanced user experiences by providing instant responses
and reducing wait times. This can lead to increased customer satisfaction and engagement.
• Data Analysis: Chatbots can collect and analyze data from user interactions, offering valuable insights
into customer preferences, needs, and behaviour.
• Integration: They can be integrated into various platforms and channels, including websites, messaging
apps, and social media, making them accessible to users through their preferred communication channels.
• Personalization: Some advanced chatbots use machine learning to personalize responses, tailoring
information and recommendations to individual users' preferences.
• Continual Learning: Many chatbots are designed to learn from interactions and improve their responses
over time, becoming more effective and efficient.
• Cost-Effective: Chatbots can reduce operational costs by automating routine tasks, allowing human
employees to focus on more complex or creative aspects of their jobs.
• Future Growth: The field of chatbots continues to evolve rapidly, with ongoing developments in AI and
NLP technology, making chatbots even more capable and natural in their interactions.
Chatbots have become an integral part of the digital landscape, and their potential applications continue to expand
as AI technology advances. They offer a glimpse into the future of human-computer interaction and have the
potential to revolutionize the way we communicate with technology and each other.

Chatbots, also known as conversational agents, are designed with the help of AI (Artificial Intelligence) software.
They simulate a conversation (or a chat) with users in a natural language via messaging applications, websites,
mobile apps, or phone.

There are two primary ways chatbots are offered to visitors:

• Web-based applications
• Standalone applications

Chatbots represent a potential shift in how people interact with data and services online. While there is currently
a surge of interest in chatbot design and development, we lack knowledge about why people use chatbots.

Here are specific steps to keep in mind for chatbot development.

1. Defined Objectives & Aspirations

Chatbots today mimic human conversations. Thanks to their learning ability and 24/7 presence. They can
optimize communication and create real engagement. The client must build a creative and user-friendly interface
for communication. Over-burdening your chatbot with traits and crafting it to ace all undertakings will probably
set you up for disappointment.

The Approach

Instead of spreading the chatbot too thin over multiple functions, it can be crafted to focus entirely on one essential
command. Always keep in mind; individuals need quality, not quantity.

2. Shorter Responses

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In today’s fast-paced world, with attention spans growing shorter every second, no one has the time to read out
long conversations. Jutting in complicated languages and lengthy dialogues will make the chatbot seem tedious.
Though your bot is capable of handling long messages and sending responses to the user, we need a mechanism
to ensure that the bot is interactive and capable of responding to diverse and yet common queries that the user
might have.

The Approach

When it comes to general usage, a bot should reply to the query in advance during interactions involving single-
line or two-line messages. Be imaginative. Keep it basic; the bot must be clear about the next step. To achieve
this, we need to train the bot to reply quicker for frequently asked messages.

3. Bot Humanization

There is a fine line between a decent bot and an incredible bot, and the latter is possible only if you give your bot
a genuine identity (named as human).

It is not merely enough to pack a sequence of answers and algorithms with a human touch. Never neglect to
humanize your bot, as it can leave your potential customer with mixed feelings. Users prefer to have a human
conversation, irrespective of the knowledge that they are chatting with a chatbot.

The Approach

You can give a human personality to your bot with a cool title. Discover a particular and personalized name for
your bot so that your users can find it easily. Additionally, educate your bot about its representation. Ensure your
bot has specific information about its personification, especially when users attempt to get some info about your
bot name, age, or its central goal. Ensure to keep your chatbot holistic in approach.

4. Design the conversation

Chatbot conversations are designed to attract customers. But when this is not executed correctly, it can be taxing
on the customer experience. Most chatbots redirect to the Live agent quickly, wherever there are in-depth queries
and conversations required. This can help retain the customers’ interest.

The Approach

Conversational chatbots are now enabling you to comprehend your customer’s demands better and collect more
significant information to make the interaction between your bot & customer more open and easier. We need to
monitor the use-cases in clients’ current activities and save communication flows.

5. Poor escalation protocol

Undoubtedly, a chatbot can communicate with the clients and help them to settle on an active choice by
demonstrating them the data from the database and contingent upon the information given by clients.

The bots can likewise get to the client’s expressed objective, keeping in mind that the end goal is to allow adequate
search and results. They can gather and present pre-chosen reviews to clients amid an interaction, given the
keyword found in the data.

The Approach

Chatbots can be utilized for various reasons. But one fundamental reason that organizations adapt to chatbots is
the reliable customer service and customer engagement.

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 ❖ Objectives

The purpose and objective of chatbots vary depending on the context and the goals of their implementation.

Here are some common purposes and objectives of chatbots:

• Customer Support: Chatbots are frequently used in customer service to provide assistance and answer
commonly asked questions. They can handle basic inquiries, provide information about products or
services, and offer support in a prompt and efficient manner.
• Automation: They are designed to automate tasks and processes that would otherwise require human
intervention. By handling routine and repetitive inquiries or tasks, chatbots can save time and resources
for businesses.
• Lead Generation and Sales: Chatbots can be utilized to engage with potential customers, gather
information about their preferences and needs, and guide them through the sales process. They can provide
personalized recommendations, offer product information, and assist in making purchasing decisions.
• Information Retrieval: They can act as virtual assistants, helping users find specific information or
content. They can search databases, provide real-time updates, and deliver relevant information based on
user queries.
• Entertainment and Engagement: Some chatbots are designed purely for entertainment purposes,
providing users with engaging and interactive experiences. These chatbots may offer games, quizzes, or
virtual companionship.
• Data Collection and Analysis: They can collect user data, such as preferences, feedback, or behavioural
patterns, which can then be analysed to gain insights into customer needs and behaviours. This data can
be valuable for improving products, services, and marketing strategies.

Overall, the purpose of chatbots is to enhance user experiences, streamline processes, and provide
efficient and personalized assistance. By leveraging natural language processing and artificial intelligence
technologies, chatbots aim to simulate human-like conversations and offer valuable support in various domains.
Chatbots are computer programs designed to simulate conversation with human users. They can be used for a
variety of purposes, such as customer service, information retrieval, and online shopping. The main objective of
chatbots is to provide users with quick and convenient access to information or services, often through natural
language processing and machine learning techniques. Chatbots are designed to give people an automated way
to communicate with your company. They may answer basic questions, make product recommendations, and
provide customer support. New tools, known as chatbots or virtual assistants, have recently hit the market with
the goal of making human-computer connections easier. Virtual financial assistants, for example, are becoming
increasingly popular. They can answer simple questions, adjust balances, and do a variety of other things. Virtual
assistants - chatbot, are some of the newest tools in our industry, designed to allow humans and computers to
connect in a natural way. Over the last few years, these technologies have become more intelligent, and they have
become one of the most potent tools for getting things done in a modern office setting. New tools, known as
chatbots or virtual assistants, have recently hit the market with the goal of making human-computer connections
easier. Virtual financial assistants, for example, are becoming increasingly popular. They can answer simple
questions, adjust balances, and do a variety of other things. Virtual assistants - chatbot, are some of the newest
tools in our industry, designed to allow humans and computers to connect in a natural way.

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 Literature Survey
❖ History of ChatBot

Chatbots have been around for a while now, but it’s only in recent years that they have gained real popularity
among users and businesses alike. Mostly, this change of awareness for chatbots and conversational interfaces
came with developments in artificial intelligence and machine learning, as well as with the increasing
popularity of messaging apps .Today, chatbots are used in various industries and for different use cases. In this
article, we will have a look at the history of chatbots, what chatbots are exactly and where they are coming
from.

Let’s get started.

1. ELIZA
ELIZA was the very first chatbot as mentioned above. It was created by Joseph Weizenbaum in 1966 and it
uses pattern matching and substitution methodology to simulate conversation. The program was designed in a
way that it mimics human conversation. The Chatbot ELIZA worked by passing the words that users entered
into a computer and then pairing them to a list of possible scripted responses. It uses a script that simulated a
psychotherapist. The script proved to be a significant impact on natural language processing and unnatural
intelligence, with copies and variants protruding up at academies around the country.

2. PARRY
PARRY was constructed by American psychiatrist Kenneth Colby in 1972. The program imitated a patient
with schizophrenia. It attempts to simulate the disease. It is a natural language program that resembles the
thinking of an individual. PARRY works via a complicated system of assumptions, attributions, and “emotional
responses” triggered by changing weights assigned to verbal inputs. To validate the work, PARRY was tested
using a variation of the Turing test. It was in the early seventies when human interrogators, interacting with the
program via a remote keyboard, were weak with more than random accuracy to distinguish PARRY from an
original unreasonable individual.

3. Jabberwacky
The chatbot was created by developer Rollo Carpenter in 1988. It aimed to simulate a natural human
conversation in an entertaining way .Jabberwacky has led to other technological growth. Some individuals use
it for academic research purposes through its webpage since its origin. The chatbot is considered to use an AI
technique called “contextual pattern matching.”

4. Dr. Sbaitso
Dr. Sbaitso is a chatbot created by Creative Labs for MS-Dos in 1992.It is one of the earliest efforts of
incorporating A.I. into a chatbot and is recognized for its full voice operated chat program. The program would
converse with the user as if it was a psychologist. Most of its responses were along the lines of “Why do you
feel that way?” rather than any sort of complicated interaction.

5. A.L.I.C.E. (Artificial Linguistic Internet Computer Entity)

A.L.I.C.E. is a universal language processing chatbot that uses heuristic pattern matching to carry
conversations. In 1995, Richard Wallace pioneered the construction of ALICE. It was formerly known as Alice
Bot because it was first to run on a computer by the name of Alice. The program works with the XML schema
known as artificial intelligence markup language (AIML), which helps specify conversation rules. In 1998,
the program was edited in Java, and in 2001 Wallace printed an AIML specification. From there, other
developers drafted free and open sources of ALICE in different programming languages and a variety of foreign
languages.

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 6. Smarter Child
The Smart Child was in many ways a precursor of Siri and was developed in 2001.The chatbot was available
on AOL IM and MSN Messenger with the strength to carry out fun conversations with quick data access to
other services. It suits Microsoft also built its own Smarter Child, years later after most people stopped using
AIM which targeted 18- to 24-year-olds in the U.S. the account suites particular conversation

7. Siri
Siri was formed by Apple for iOS in 2010; it is an intelligent personal assistant and learning navigator that
uses a natural language UI. It paved the system for all AI bots and PAs after that.A patent application by the
United States Patent and Trademark Office details a new Apple service where users could make inquiries and
conversation with Siri through Messages. The new patent is similar to a published late last year, but now
includes deeper integration with audio, video, and image files.

8. Google Now/Google Assistant

Google Now was launched at Google Inch in 2012. It answers questions, performs actions through requests
made to a set of web services and makes recommendations. It was part of a package of updates and UI
modifications for mobile search, which included a female-voiced portable assistant to compete with Apple’s
Siri. Google Now was initially a way to get contextually appropriate information based on location and time
of the day. It evolved to become much more complicated and elaborate, with a broad range of content categories
delivered on cards.

9. Alexa
Alexa is an intelligent personal assistant developed by Amazon. It was introduced in 2014 and is now built in
to devices such as the Amazon Echo, the Echo Dot, the Echo Show and more. There is also an Alexa app and
more devices from third-party manufacturers that have Alexa built in to them.

10. ChatGPT
ChatGPT is a large language model trained by OpenAI. It was founded by the OpenAI team in 2021. It is
designed to assist users in generating human-like text based on given input. ChatGPT can be used for a variety
of tasks, including conversation generation and language translation. The model is trained on a massive amount
of data, allowing it to generate text that is often difficult to distinguish from text written by a human. ChatGPT
has been praised for its ability to generate natural-sounding text and its potential applications in a variety of
fields. By the way – this abstract was created by ChatGPT.

History of chatbots-From ELIZA to ChatGPT

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 ❖ Summary of research papers studied

A chatbot is a conversational agent where a computer program is designed to simulate an intelligent

conversation. It can take user input in many formats like text, voice, sentiments, etc. For this purpose, many open-
source platforms are available. Artificial Intelligence Markup Language (AIML) is derived from Extensible
Markup Language (XML) which is used to build up a conversational agent (chatbot) artificially. In this paper,
we use „program-Chatbots are computer programs that interact with users using natural languages. This
technology started in the 1960’s; the aim was to see if chatbot systems could fool users that hyperreal humans.
However, chatbot sys-teams are not only built to mimic human conversation, and entertain users. In this paper,
we investigate other applications where chatbots could be useful such as education, information retrieval,
business, and e-commerce. A range of chatbots with useful applications, including several based on the
Alice/AIML architecture, are presented in this paper. Chatbots send Computer programme, die met Benutzern in
naturalities Spra-Che communiser. Die rested Programme gab es in den 60er Jahren; das Ziel war festzustellen,
ob. Chatbots Benitez Davon Obereggen contends see in Wirklichkeit Menschen seien. Chatbots warden aber
nicht nursemaid, um benchlike Communication nachzuahmen und um Benutzerzu unthreatened. In diesem
Artikel untouched wire andere Anwendungenfür Chatbots, zoom Beispiel in Building, Subhashini, Commerciale
An-wending und e-commerce. Wir stellen Eine Reihe von Chatbots met nütz-lichen Anwendungen vor,
einschliesslich mehrerer Chatbots, die auf derALICE/AIML Architecture basiereThis paper aims to demystify
the hype and attention on Chatbots and its association with conversational artificial intelligence. Both are
slowly emerging as a real presence in ourlives from the impressive technological developments in machine
learning, deep learning and natural language understanding solutions. However, what is under the hood, and how far and to
what extent can Chatbots/conversational artificial intelligence solutions work is our question. Natural language
is the most easily understood knowledge representation for people, but certainly not the best for computers
because of its inherent ambiguous, complex and dynamic nature. We will critique the knowledge representation
of heavy statistical Chatbot solutions against linguistics alternatives. In order to react intelligently to the user, natural
language solutions must critically consider other factors such as context, memory, intelligent understanding, previous experience, and
personalized knowledge of the user. We will delve into the spectrum of conversational interfaces and focus on a
strong artificial intelligence concept. This is explored via a text based conversational software agents with a deep
strategic role to hold a conversation and enable the mechanisms need to plan, and to decide what to do next,
and manage the dialogue to achieve a goal. To demonstrate this, a deep linguistically aware and knowledge
aware text based conversational agent (LING-CSA) presents a proof-of-concept of a non-statistical
conversational AI solution.

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Technical Background / Algorithms
❖ Algorithms
Chatbots, like the one you're interacting with, have various technical backgrounds and can be built using different
algorithms and approaches. Here's a high-level overview of the technical background of chatbots, along with a
mention of two common algorithms and some technical methods/approaches:
• Natural Language Processing (NLP): Chatbots rely heavily on NLP, a field of artificial intelligence that
focuses on the interaction between computers and humans through natural language. NLP encompasses
various subfields like text processing, sentiment analysis, and language understanding.

• Machine Learning: Machine learning is a fundamental component of chatbots. It involves training models
on large datasets to make predictions or generate responses. Some common machine learning algorithms
used in chatbots include:

• Recurrent Neural Networks (RNNs): These are often used for sequence-to-sequence tasks, making them
suitable for chatbot dialogue generation.

• Transformers: Transformer-based models, like GPT-3 and BERT, have revolutionized chatbots by
enabling them to understand context and generate coherent responses. Dialog Management: Managing
conversations and context is crucial for chatbots. Techniques like rule-based systems, state machines, and
reinforcement learning can be employed to handle the flow of conversation.

• Data Sources: Chatbots can be trained on a wide range of data sources, including text corpora, customer
service logs, and domain-specific knowledge bases.

• APIs and Integration: Chatbots often integrate with external services and APIs to provide information or
perform actions. This requires technical skills in connecting to various APIs.

• User Interfaces: Chatbots can be deployed on various platforms, including websites, messaging apps, and
voice assistants, which involves designing user interfaces and using appropriate technologies.

• Language Generation: Techniques for generating human-like responses include techniques like beam
search, top-k sampling, and nucleus sampling.

• Evaluation Metrics: To assess the performance of chatbots, metrics like BLEU, ROUGE, and perplexity
are used to measure language quality and coherence.

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 • Ethical Considerations: Developers need to consider ethical and bias-related challenges in chatbot
development, as well as privacy and data security issues.

Overall, the technical background of chatbots is a multidisciplinary field that encompasses various domains, from
NLP and machine learning to dialog management, data integration, and user experience design. The specific
algorithms and methods used can vary depending on the chatbot's purpose and complexity. Overall, the technical
background of chatbots is a multidisciplinary field that encompasses various domains, from NLP and machine
learning to dialog management, data integration, and user experience design. The specific algorithms and methods
used can vary depending on the chatbot's purpose and complexity.

❖ Technical methods or Approaches of chatbot

When developing a chatbot, there are several different approaches that can be taken. Whether you’re looking to
go the Finite State Machines route, the Deep Learning route, or go off in another direction, choosing what type
of development to use with your chatbot is crucial to its success. Are you creating a virtual assistant that will plan
meetings and schedule appointments? Do you want to create an automated HR system to help save you time and
money on on boarding? In this blog we will teach you about two major types of chatbots that you can develop.
Finite State Machines vs. Deep Learning
There are several different ways to develop a new chatbot. The two broad choices provided below are important
when considering what problems, you want the chatbot to address.

• Finite State Machines

These are state machines that involve complex pattern matching, and are about matching incoming
strings(customer text,) with pre-defined patterns. Pattern matching uses regex to find patterns in the incoming
text and classifies it into different blocks of resolution. Pattern matching is called Finite State Automata, and is
used when the bot is not expecting to respond to broader questions. For example, IVR, vending machines, and
very narrow domains – such as appointment booking – are all Finite State Automata. By using the machine-
initiative strategy, most of the user queries are handled by the finite state machine which models predefined
dialogues. If the user's utterance is out of the range of modelled dialogues, the retrieval model processes the input.
“A finite state machine (FSM) or finite state automaton (FSA, plural: automata), finite automaton, or simply a
state machine, is a mathematical model of computation. The powers of a Finite State Machine are quite extensive.

• Deep Learning

Deep learning techniques are more sophisticated methods than Finite State Machines. They process, input, and
understand intention in a broader context. They employ various types of neural networks for this purpose. This
way they are more capable and effective in managing dialogue with humans than Finite State Machines are. The
chatbot applications within deep learning can handle a broader context that can cover multi-domain or multi-
service business context. A branch of machine learning inspired by communication patterns in a nervous system.
Like neural networks, at each layer, the signal is transformed by a processing unit, like an artificial neuron, whose
parameters are 'learned' through training. Deep learning algorithms transform their inputs through more layers
than traditional computational neural networks. Recently, deep learning has been part of several major advances
in the field of artificial intelligence, for example, in 2015, Google's large scale speech recognition suddenly almost
doubled its performance thanks to the application of deep learning techniques. A deep learning chatbot learns
right from scratch through a process called “Deep Learning.” In this process, the chatbot is created using machine
learning algorithms. Deep learning chatbots learn everything from their data and human-to-human dialogue.

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 Summary and Conclusion

❖ Learning Outcomes

The learning outcomes of using a Chatbot like the one you're interacting with can vary depending on your goals
and the specific Chatbot’s capabilities. However, some common learning outcomes include:

• Improved Information Retrieval: Chatbots can assist in quickly finding information on a wide range of
topics.
• Natural Language Understanding: Interacting with Chatbots can help users understand how natural
language processing works and how to communicate effectively with AI systems.
• Problem-Solving Skills: Chatbots can help users develop problem-solving skills by providing solutions
to various queries.
• Programming and Development: Developing Chatbots or customizing existing ones can lead to improved
programming and development skills.
• Enhanced User Experience: Understanding user experience design principles through Chatbot
interactions.
• Automation Skills: Learning how to automate tasks or processes through Chatbots.
• Data Analysis: Chatbots may assist in data collection and analysis.
• Conversational AI Understanding: Learning how conversational AI systems work, including intents,
entities, and dialog management.
• Ethical and Responsible AI: Understanding the ethical and responsible use of AI in chat applications.

Educational chatbots (ECs) are chatbots designed for pedagogical purposes and are viewed as an Internet of
Things (IoT) interface that could revolutionize teaching and learning. These chatbots are strategized to provide
personalized learning through the concept of a virtual assistant that replicates humanized conversation.
Nevertheless, in the education paradigm, ECs are still novel with challenges in facilitating, deploying, designing,
and integrating it as an effective pedagogical tool across multiple fields, and one such area is project-based
learning. Therefore, the present study investigates how integrating ECs to facilitate team-based projects for a
design course could influence learning outcomes. Based on a mixed-method quasi-experimental approach, ECs
were found to improve learning performance and teamwork with a practical impact. Moreover, it was found that
ECs facilitated collaboration among team members that indirectly influenced their ability to perform as a team.
Nevertheless, affective-motivational learning outcomes such as perception of learning, need for cognition,
motivation, and creative self-efficacy were not influenced by ECs. Henceforth, this study aims to add to the
current body of knowledge on the design and development of EC by introducing a new collective design strategy
and its pedagogical and practical implications.

Artificial intelligence (AI) chatbots are gaining increasing popularity in education. Due to their increasing
popularity, many empirical studies have been devoted to exploring the effects of AI chatbots on students' learning
outcomes. The proliferation of experimental studies has highlighted the need to summarize and synthesize the
inconsistent findings about the effects of AI chatbots on students' learning outcomes. However, few reviews
focused on the meta-analysis of the effects of AI chatbots on students' learning outcomes. The present study
performed a meta-analysis of 24 randomized studies utilizing Stata software (version 14). The main goal of the
current study was to meta-analytically examine the effects of AI chatbots on students' learning outcomes and the
moderating effects of educational levels and intervention duration. The results indicated that AI chatbots had a
large effect on students' learning outcomes. Moreover, AI chatbots had a greater effect on students in higher
education, compared to those in primary education and secondary education. In addition, short interventions were
found to have a stronger effect on students' learning outcomes than long interventions.
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 ❖ Applications

Chatbots have grown in popularity in recent years. But finding applications for chatbots for business professionals

might be challenging. This makes deriving a competitive advantage from chatbots might be difficult.

1- Customer Support: Your customer may be browsing in a fast manner but not completing any actions. Or their
online behaviour may not fit patterns you observe with other customers. These are good clues that the customer
may need support which can be offered by your chatbot.

2- Suggest products: Search results, personalized merchandising, and recommendations can help your customer
find specific products. However, when your customers’ online activity indicates a willingness to buy, but is yet to
make a purchase, it may be a good time to probe what the customer is exactly looking for. A conversational interface
allows you to ask probing questions and understand your customers’ intent better.

3- Offer discounts: Your customer may be looking for a better price because they believe they qualify for a
discount. The chatbot can access their purchase history and previous interactions with the brand to determine if
they actually qualify for a discount, and then to offer them one.

4- Prevent churn: Churn prediction is one of the most important use cases for subscription-based industries.
Understanding the reasons for churn and making churn- reducing-offers are a good fit for conversational interfaces.

e-Commerce

Chatbots can add a new layer of interactivity to e-commerce, allowing customers to interact beyond menus and
buttons. Major use cases of chatbots in e-commerce are:

• 5- Set price alerts: Bots that give price alerts can notify the customer when there is a price change, beyond
an established threshold, by scraping vendors’ prices online.
• 6- Order goods: Users can use the chatbot to place orders for the goods they want, as opposed to manually
navigating through different web pages.
• 7- Buy gifts: The chatbot can ask the person for whom they are looking to buy a gift, and then ask follow
up questions about the recipient, such as their age, gender, favourite colour, favourite TV show, etc. to
offer personalized recommendation.
• 8- Reserve services: Especially in the restaurant industry chatbots can be used for patrons to reserve their
seats for a more streamlined dining experience and less waiting times.
• 9- Track orders: Order tracking, which is one of the most common features of e-commerce platforms,
can be done quickly via chatbots. Tars provides a chatbot solution for payment and order tracking by
integrating on e-commerce websites.

Travel

All the way from booking travel to solving travel-related problems, travel chatbots have the potential to help. New
ventures like Instalocate are already making money by solving people’s travel-related problems.

10- Vacation planning: While most parts of travel bookings are already self-service, it is time-consuming to plan
a vacation. Travelers need to discover the sights and experiences they would be interested in, plan an itinerary, pick
hotels to stay in based on numerous criteria from kid-friendliness to location. While these tasks are frustrating for
travellers, clever chatbots can make them much more pleasant experiences.

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11- Reservations: Text-based reservation systems can be easier to use and can complement your online reservation
systems. Mariott International’s chatbot is already a growing channel for reservations.

12- Queries & complaints: Chatbots can ask the customer for their feedback and level of satisfaction with both the
service/product that was provided, as well as the functionality of the chatbot itself. The comments, complaints, and
suggestions can then be logged and studied for identifying areas where improvements could be made.

Finance

Some examples include Capital One’s Eno, Bank of America’s Erica, and Well Fargo’s Facebook Messenger
bot. Finance chatbots have numerous use cases, for example:

• 13- Information service: Most banking chatbots are capable of informing users about their balances,
recent transactions, credit card payment dates, limits and so on.
• 14- Investment management: Robo-advisors are getting smarter everyday and will soon serve as the
first level of advisor for most non-affluent customers.
• 15- Credit applications: Just as robot-advisor chatbots are taking over investment advisors, chatbots are
also capable of collecting necessary data for credit decisions
• 16- Money transfer: Chatbots can easily handle money transfers via SMS, Facebook messenger or other
popular chat platforms. Western Union has a money transfer bot that enables money transfer requests
through Facebook Messenger.
• 17- Bill payments: Bill Hero is an example of a bank-agnostic mobile application and it brings bill-paying
capabilities via chatbots on Facebook Messenger.

We have an entire article dedicated to banking chatbots.

Healthcare

Chatbots are a great candidate for healthcare automation, for example:

• 18- Handling healthcare & insurance coverage related inquiries: Applications such as Health Joy,
HealthTap and Your.MD help customers navigate the complex healthcare landscape in the US.
• 19- Diagnosis: Med What and Ada Health are AI-powered chatbots that can serve as a medical assistant
by gathering information via conversation with the patients. It seems chatbots are on the way to becoming
the first contact point on diagnostic healthcare. After the COVID-19 outbreak, people have become more
aware of the dangers of infection. Diagnostic bots, like telemedicine, facilitate remote diagnostics,
reducing potential infections.
• 20- Therapy: Since therapy is almost completely text-based, it is a great area for chatbots to work
in. Warbot is one of the leading chatbots, providing cognitive-behavioural therapy in the treatment of
depression.

To learn more about emotional chatbots, click here.

Hospitality

21- Reservations & handling menu related questions: Chat book can share menus and promotions, collecting
feedback.

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 ❖ Future Scope of ChatBot

The future scope of chatbots is very bright. Chatbots are already being used in a wide range of industries, and
their capabilities are only going to improve in the coming years. The future of chatbots holds significant promise
and is expected to continue evolving in various ways:

1. Improved Natural Language Processing (NLP): Advancements in NLP technology will

enable chatbots to understand and respond to human language with еvеn greater accuracy and
contеxt awareness.
2. Customer Service: Chatbots like Bot Sailor, ChatPion, etc. are already being used to provide
customer service, and this trend is only going to continue. Chatbots can provide 24/7 support,
and they can handle a wide range of customer inquiries.
3. Enhanced Personalization: Chatbots will become better at delivering personalized
experiences by analysing user data and preferences, making interactions more relevant and
engaging.
4. Multilingual Support: Chatbots will be able to communicate fluently in multiple languages,
breaking down language barriers and expanding their reach to a global audience.
5. Sales and Marketing: Chatbots can be used to generate leads, qualify leads, and close deals.
They can also be used to provide product recommendations and to answer customer questions
about products and services.
6. Voice and Spееch Recognition: Integration with voice assistants like Siri, Alexa, and Google
Assistant will enable chatbots to provide voicе-basеd interactions, making them more accessible
and convenient.
7. AI-Driven Predictive Abilities: Chatbots will be able to predict users nееds and proactively
offer assistance or suggestions, making them more proactive in helping users.
8. Integration with IoT: Chatbots will play a crucial role in managing smart home devices and
IoT ecosystems, allowing users to control and monitor their environments through chat
interfaces.
9. Industry-Specific Applications: Chatbots will be tailored for specific industries, such as
healthcare, finance, and customer support, providing specialized solutions and expertise.
10. Human-Machine Collaboration: Chatbots will collaborate more seamlessly with human
employs, automating routine tasks and frееing up human workers to focus on more complex
and creative responsibilities.
11. Healthcare: Chatbots can be used to provide healthcare information and advice, schedule
appointments, and manage chronic conditions.
12. Emotional Intelligence: Advances in emotional AI will enable chatbots to better recognize and
respond to user’s' emotions, making interactions more empathetic and supportive.
13. Security and Privacy: Chatbots will nееd to prioritize security and privacy, ensuring that
user data is protected and that they comply with evolving regulations.
14. Continuous Learning: Chatbots will continuously learn from user interactions and
fееdback, improving their capabilities over time.
15. E-commerce and Sales: Chatbots will play a vital role in е-commerce, providing
personalized product recommendations, assisting with purchases, and answering customer
inquiries.
16. Virtual Healthcare Assistants: Chatbots will become more prevalent in the healthcare
sector, assisting patients with medical information, appointment scheduling, and
mеdication reminders.

Thеsе are ways that chatbots could be used in the future. As chatbots become more sophisticated and
human-like, we can еxpеct to sее them еvеn more widely used in our everyday lives.

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 ❖ References

https://www.oracle.com/in/chatbots/what-is-a-chatbot

https://www.quora.com/What-is-the-purpose-and-objective-of-chatbots

https://onlim.com/en/the-history-of-chatbots/

https://www.mdpi.com/2078-2489/13/1/41

https://www.toptal.com/insights/innovation/chatbot-technology

https://research.aimultiple.com/chatbot-applications/

https://www.quora.com/What-is-the-future-scope-of-chatbot

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Acknowledgement

I would like to place on record my deep sense of gratitude to Prof. Sanjay Kalyankar, HOD-Dept. of Computer
Science and Engineering (Artificial Intelligence and Machine Learning), Deogiri Institute of Engineering and
management Studies Aurangabad, for his generous guidance, help and useful suggestions.

I express my sincere gratitude to Prof. G.P Burkul, Dept. of Computer Science and Engineering, Deogiri Institute
of Engineering and management Studies Aurangabad, for her stimulating guidance, continuous encouragement
and supervision throughout the course of present work.

I am extremely thankful to Dr. Ulhas Shiurkar, Director, Deogiri Institute of Engineering and management
Studies Aurangabad, for providing me infrastructural facilities to work in, without which this work would not
have been possible.

Signature of Student
Name of student: Neha Santosh Bali

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