Several studies accomplished by analytics agencies such as Juniper or Gartner [34] report significant reduction of cost of customer services, leading to billions of dollars of economy in the next 10 years. Gartner predicts an integration by 2020 of chatbots in at least 85% of all client's applications to customer service. Juniper's study announces an impressive amount of $8 billion retained annually by 2022 due to the use of chatbots.
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.

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]
A representative example of a chat bot is A.L.I.C.E., brought to artificial life in 1995 by Richard Wallace. The A.L.I.C.E. bot participated in numerous competitions related to natural language processing evaluation and obtained many honors and awards, and it is also worth mentioning that this chat bot won the Loebner Prize contest at least three times, it was also part of the top 10 at Chatterbox competition, and won the best character/personality chat bot contest.
In one particularly striking example of how this rather limited bot has made a major impact, U-Report sent a poll to users in Liberia about whether teachers were coercing students into sex in exchange for better grades. Approximately 86% of the 13,000 Liberian children U-Report polled responded that their teachers were engaged in this despicable practice, which resulted in a collaborative project between UNICEF and Liberia’s Minister of Education to put an end to it.
A representative example of a chat bot is A.L.I.C.E., brought to artificial life in 1995 by Richard Wallace. The A.L.I.C.E. bot participated in numerous competitions related to natural language processing evaluation and obtained many honors and awards, and it is also worth mentioning that this chat bot won the Loebner Prize contest at least three times, it was also part of the top 10 at Chatterbox competition, and won the best character/personality chat bot contest.
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.

The “stand-alone” application, where the chatbot runs on a single computer, integrates mostly some sort of system interface, allowing your chatbot to control certain aspects and functions of your computer, such as playing media files, or retrieving documents. It usually also has a graphical component built in, as well, in the form of an avatar (often female) that enhances interaction, thus improving user’s experience.
ALICE – which stands for Artificial Linguistic Internet Computer Entity, an acronym that could have been lifted straight out of an episode of The X-Files – was developed and launched by creator Dr. Richard Wallace way back in the dark days of the early Internet in 1995. (As you can see in the image above, the website’s aesthetic remains virtually unchanged since that time, a powerful reminder of how far web design has come.) 
Derived from “chat robot”, "chatbots" allow for highly engaging, conversational experiences, through voice and text, that can be customized and used on mobile devices, web browsers, and on popular chat platforms such as Facebook Messenger, or Slack. With the advent of deep learning technologies such as text-to-speech, automatic speech recognition, and natural language processing, chatbots that simulate human conversation and dialogue can now be found in call center and customer service workflows, DevOps management, and as personal assistants.
The classic historic early chatbots are ELIZA (1966) and PARRY (1972).[10][11][12][13] More recent notable programs include A.L.I.C.E., Jabberwacky and D.U.D.E (Agence Nationale de la Recherche and CNRS 2006). While ELIZA and PARRY were used exclusively to simulate typed conversation, many chatbots now include functional features such as games and web searching abilities. In 1984, a book called The Policeman's Beard is Half Constructed was published, allegedly written by the chatbot Racter (though the program as released would not have been capable of doing so).[14]
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