T E C H O N T R E N D :

CHATBOTST R E N D S & A P P L I C A T I O N S

C H A T B O T SIn a nutshell

“The chat space is the last unpolluted space [on your phone]. It´s like a National Park of people´s online experience. Right now, the way people use chat services, it´s really a good private space that you control.” - Sam Mandel, Developer of bot Poncho

A chatbot is an intelligent agent, powered by rules and/or artificial intelligence, designed to automatically respond to user requests via conversational interfaces. These new software robots transform the way people interact with the

internet, enabling automation of numerous services, from food orders to customer support and research.

Rules-based chatbotsare as smart as they areprogrammed to be, responding onlyto specific pre-defined commands.

Machine learning-based chatbotsprocess and understand naturallanguage, getting smarter bylearning from conversations. Theyinteract in a more human way.

Chatbot Types The Chatbot Ecosystem

Native Agents

Deployment Channels

Conversational Interfaces

Sources: BI Intelligence, O´Reilly, CB Insights 2

T H E R I S E O F C H A T B O T SHistory & present

1966 ELIZAMimicked human conversation by matching user prompts to pre-scripted responses.

1950 The Turing TestFirst theory that an intelligent

machine could communicate like a human via text conversation.

1972 PARRYAdvanced version of Eliza that

could simulate a person with schizophrenia. 1988 JABBERWACKY

One of the first attempts to simulate human chat and move to a voice-operated system.1995 A.L.I.C.E.

The ‘Artificial Linguistic Internet Computer Entity’ bot. It was able

to match rules to human input. 2001 SMARTERCHILDThe first chatbot built for messaging platforms.

2006 IBM WATSON

2015 ALEXA, CORTANA

2010 SIRI

2012 GOOGLE NOW

Chatbots have a long history, but what’s fostering their development now?

2016 BOTS FOR MESSENGERS

“People are now spending more time in messaging apps than in social media and that is a huge turning point. Messaging apps are the platforms of the future and bots will be how their users access all sorts of services.”  — Peter Rojas, Betaworks 

Expansion of messaging apps

The app problem

Advances in machine learning & AI

Robust ecosystem

Overload: only five apps are heavily used

Decreasing usage of apps: 65.5% of people download zero apps per month

Functionality and deployment improvements

Easier and affordable chatbots deployment

Deployment channelsMessaging appsThird-party bots Native bots

2.

2014: 13 bn messages/ day2016: 76 bn messages/ day

2.5 bn people have at least one messaging app

4.3.

1.

Sources: Statista, Nielsen,ComScore Mobilens, Futurism, Pypestream

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A P P L I C A T I O N F I E L D SUse cases within various sectors

Personal AssistantsProductivity tasks,

Weather bots,Health & sport applications,

Groceries & cooking,News & updates

MarketingVisitor management,Site feedback, Lead qualification, Lead nurturing, Guidance, Negotiation, Analytics

ProductivityPersonal assistants, Office management, Sales assistants, Meeting scheduling, HR personnel, Resume bots, Research & analytics, Tasks & file management

Customer Support Virtual assistants, Ticketing bots, Live chat interactions, Social messages,Information on updates,Account management,Billing & invoices,Upselling & cross-selling

Enterprise Applications

CustomerApplications

TravelFlight assistants,

Reservations & bookings, Taxi bots,

Travel info & updates

E-CommerceOrdering & shipping, Shopping assistants, Personal shoppers,

Price alerts, Gift assistants

Leisure & EntertainmentFood orders & delivery, Restaurant finders, Movie reservations, News

& weather forecasting, Photo & video editing, Event ticketing,

Gaming

Finance & LegalStock bots, Legal assistants,

Finance & account assistants, Insurance (filing a claim,

support)

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A P P L I C A T I O N A D V A N T A G E SDo I need a chatbot?

“Messaging is where we spend a ton of our time and expect to communicate. It’s ridiculous we still have to call most businesses.”  — Josh Elman, Partner at Greylock

New Customers

Millennials see mobile messaging as their

preferred method of communication and

interaction

Service Quality

Higher Efficiency

Improved Productivity

Closer connections and better engagement with

customers through personalized and immediate

services

Streamlining and automating internal and

external operational processes within

organizations

Cost-saving technology that functions without

time restrictions or bias, as well as being

personalized

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T R E N D S & F U T U R EWhat’s happening in the chatbot space?

Investment in 2016

$227 Million192 startups

Investment Since 2010

$ 480 Million

Investment in2015

$99 Million125 startups

The most active investors:

BetaworksY Combinator

Slack

“Chat apps will come to be thought of as the new browsers; bots will be the new website. This is the beginning of a new Internet.” – Ted Livingston, Founder and CEO of KiK 

The arrival of complex business bots

Next frontier of superior customer support

The natural replacement for the majority of apps

Bot-driven social media systems

The rise of personal assistants

The next step-change for search

Future of Chatbots

Sources: Traxn, CB Insights 6

B E S T P R A C T I C E S F R O M V I E N N APlayers of the chatbot ecosystem

@SophieStyleBot GoSepp A1 Smartphone @ZoomsquareBot

hokify xeet yodel.io@venturetips

Black Bart Growth @swell.bot @nelabot@RecordBird

computercomputerhipstercatbot.com @memegenbot @piobot

@teletext.bot@TheComicBot @whatchadochatbot goodbag.io

ORF Wahlbot@AustrianAirlines @wienbot @dungeonsdice

As an early adopter of innovative technologies, Pioneers developed its own chatbot. Piobot is an

event assistant that allows you to:

✓ Check your event agenda

✓ Receive reminders about meetings

✓ Ask about location, speakers and startups

✓ Receive push notifications

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A team of corporate innovation and startup specialists.

70+collaboration projects on an

international scale.

A network of 13,000+ high-potential early-stage startups.

Let US help YOU implement innovation through the potential of startups and their technology.

Want to find out more about the benefits of chatbots?

And discover the best chatbot startups?

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Happy to help!

Natalia GricovkanicsConsultant

natalia.gricovkanics@pioneers.iowww.pioneers.io/discover

We’re happy to tell you more about chatbotsand how your company might benefit from them.

Feel free to contact us!

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