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Chatbot (or talkbot, chatterbot) is a computer program that can conduct conversation with people using artificial intelligence. The conversation is usually conducted in textual or auditory methods. Chatbot can change the way people interact with the internet by providing more customized responses to people.

Chatbot is usually used in customer service or information acquisition, an example of chatbot is Apple’s Siri, it is capable of giving precise response to user’s questions or requests. For example, Siri can execute commands like ‘Call Peter’, ‘Check the temperature’ and give accurate response like ‘Which bus should I take to go from Valencia to Barcelona’. Normally, chatbots use dialog systems but some chatbots use a more sophisticated natural language processing system. However, many simpler systems just scan for the keywords in the sentence and then response with the most similar wording pattern or most matching keywords from a database. The following are some reasons for business to use chatbot.

I. Customer service
Many companies have poor customer service; customers have to wait over 10 minutes for a customer service representative to pick up the phone and answer your question. In fact, companies can install a chatbot system in customer service department where customers can simply message a customer service chatbot and get their answers instantly. This can significantly lower the labor cost in the customer service department and increase customer satisfaction at the same time.

II. Consumer analysis
Chatbots can play a significant role in consumer analysis and help optimize sales and marketing strategies as a result of the analysis. Chatbots can be used to track purchasing behaviors and monitor consumers’ data. This can help companies to save money because the company does not have to hire a analyst, which is usually costly and the analysis can achieve high accuracy because the program can avoid any human errors.

III. Active customer interaction
Instead of having a passive customer interaction strategy, companies can use chatbot to reach out the customers actively. For example, when a customer is browsing an online shopping store, the chatbot can inquire whether or not the customer needs assistance, this can let customer know that the brand is present and available to assistance, increasing customer loyalty.

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