There has been a great deal of controversy about the use of bots in an automated trading function. Auction website eBay has been to court in an attempt to suppress a third-party company from using bots to traverse their site looking for bargains; this approach backfired on eBay and attracted the attention of further bots. The United Kingdom-based bet exchange Betfair saw such a large amount of traffic coming from bots that it launched a WebService API aimed at bot programmers, through which it can actively manage bot interactions.
According to Richard Wallace, chatbots development faced three phases over the past 60 years. In the beginning, chatbot only simulated human-human conversations, using canned responses based on keywords, and it had almost no intelligence. Second phase of development was strictly associated with the expansion of Internet, thanks to which a chatbot was widely accessed and chatted with thousands of users. Then, the first commercial chatbot developers appeared. The third wave of chatbots development is combined with advanced technologies such as natural language processing, speech synthesis and real-time rendering videos. It comprises of chatbot appearing within web pages, instant messaging, and virtual worlds.
[In] artificial intelligence ... machines are made to behave in wondrous ways, often sufficient to dazzle even the most experienced observer. But once a particular program is unmasked, once its inner workings are explained ... its magic crumbles away; it stands revealed as a mere collection of procedures ... The observer says to himself "I could have written that". With that thought he moves the program in question from the shelf marked "intelligent", to that reserved for curios ... The object of this paper is to cause just such a re-evaluation of the program about to be "explained". Few programs ever needed it more.[8]

AIML, Artificial Intelligence Markup Language developed by Richard Wallace, constitutes an open standard for creating your own chat bot. AIML file consists of row-type, database-style data combined with hierarchical XML data in each response. This video shows one of spreadsheet-style editors for AIML, Simple AIML Editor (SAE) developed by Adeena Mignogna. The SAE allows botmasters to manage large AIML sets and then zoom in on the templates to edit the responses.


Other companies explore ways they can use chatbots internally, for example for Customer Support, Human Resources, or even in Internet-of-Things (IoT) projects. Overstock.com, for one, has reportedly launched a chatbot named Mila to automate certain simple yet time-consuming processes when requesting for a sick leave.[31] Other large companies such as Lloyds Banking Group, Royal Bank of Scotland, Renault and Citroën are now using automated online assistants instead of call centres with humans to provide a first point of contact. A SaaS chatbot business ecosystem has been steadily growing since the F8 Conference when Facebook's Mark Zuckerberg unveiled that Messenger would allow chatbots into the app.[32] In large companies, like in hospitals and aviation organizations, IT architects are designing reference architectures for Intelligent Chatbots that are used to unlock and share knowledge and experience in the organization more efficiently, and reduce the errors in answers from expert service desks significantly.[33] These Intelligent Chatbots make use of all kinds of artificial intelligence like image moderation and natural language understanding (NLU), natural language generation (NLG), machine learning and deep learning.

In a particularly alarming example of unexpected consequences, the bots soon began to devise their own language – in a sense. After being online for a short time, researchers discovered that their bots had begun to deviate significantly from pre-programmed conversational pathways and were responding to users (and each other) in an increasingly strange way, ultimately creating their own language without any human input.

The term Chatbot is closely related to chat bot and chatterbot. Chatterbot is more popular in relation to chatbot who talk a lot, and is not necessary very intelligent in processing the user answers. Chat bot is used by technical people who consider the word ‘bot’ as a normal term for ‘robotised actions’, and for them ‘chat bot’ is a special kind of bot. The term Chatbot is actually the most popular amongst these three terms and has the broadest meaning.
There are several defined conversational branches that the bots can take depending on what the user enters, but the primary goal of the app is to sell comic books and movie tickets. As a result, the conversations users can have with Star-Lord might feel a little forced. One aspect of the experience the app gets right, however, is the fact that the conversations users can have with the bot are interspersed with gorgeous, full-color artwork from Marvel’s comics. 
The Evie chatbot has had a huge impact on social media over the last few years. She is probably the most popular artificial personality on YouTube. She has appeared in several videos by PewdiePie, the most subscribed YouTuber in the world. This includes a flirting video with over 12 million views! Evie has been filmed speaking many different languages. She chats with Squeezie in French, El Rubius and El Rincón De Giorgio in Spanish, GermanLetsPlay and ConCrafter in German, NDNG - Enes Batur in Turkish, Stuu Games in Polish and jacksepticeye, ComedyShortsGamer and KSIOlajidebtHD in English. And that is a very small selection. Evie shares her database with Cleverbot, which is an internet star in its own right. Cleverbot conversations have long been shared on Twitter, Facebook, websites, forums and bulletin boards. We are currently working to give Evie some more artificial companions, such as the male avatar Boibot.
In 1950, Alan Turing's famous article "Computing Machinery and Intelligence" was published,[7] which proposed what is now called the Turing test as a criterion of intelligence. This criterion depends on the ability of a computer program to impersonate a human in a real-time written conversation with a human judge, sufficiently well that the judge is unable to distinguish reliably—on the basis of the conversational content alone—between the program and a real human. The notoriety of Turing's proposed test stimulated great interest in Joseph Weizenbaum's program ELIZA, published in 1966, which seemed to be able to fool users into believing that they were conversing with a real human. However Weizenbaum himself did not claim that ELIZA was genuinely intelligent, and the introduction to his paper presented it more as a debunking exercise:
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