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The term "Chatter Bot" was originally coined by Michael Mauldin (creator of the first Verbot, Julia) in 1994 to describe these conversational programs.There are two main types of chatterbots, one functions based on a set of rules, and the other more advanced version uses artificial intelligence.

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However Weizenbaum himself did not claim that ELIZA was genuinely intelligent, and the Introduction to his paper presented it more as a debunking exercise: [In] artificial intelligence ...The chatterbots based on rules, tend to be limited in functionality, and are as smart as they are programmed to be.On the other end, chatterbots that use artificial intelligence, understands language, not just commands, and continuously gets smarter as it learns from conversations it has with people.A chatterbot (also known as a talkbot, chatbot, Bot, chatterbox, Artificial Conversational Entity) is a computer program which conducts a conversation via auditory or textual methods.Such programs are often designed to convincingly simulate how a human would behave as a conversational partner, thereby passing the Turing test.Most people prefer to engage with programs that are human-like, and this gives chatbot-style techniques a potentially useful role in interactive systems that need to elicit information from users, as long as that information is relatively straightforward and falls into predictable categories. 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). Two such annual contests are the Loebner Prize and The Chatterbox Challenge.

Thus, for example, online help systems can usefully employ chatbot techniques to identify the area of help that users require, potentially providing a "friendlier" interface than a more formal search or menu system. One pertinent field of AI research is natural language processing. Chatterbots are often integrated into the dialog systems of, for example, automated online assistants, giving them the ability of, for example, small talking or engaging in casual conversations unrelated to the scopes of their primary expert systems.

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.

This sort of usage holds the prospect of moving chatbot technology from Weizenbaum's "shelf ... Usually, weak AI fields employ specialized software or programming languages created specifically for the narrow function required. Currently chatterbots are widely used as part of messaging platforms like Facebook Messenger or Snapchat for entertaining purposes as well as B2C marketing.

reserved for curios" to that marked "genuinely useful computational methods". Companies like Pizza Hut, Disney, Yamato’s Line and Whole Foods have launched their own chatterbots to increase end customer engagement, promote their products and services, and give their customers a more convenient and easier way to order from them.

The classic historic early chatterbots are ELIZA (1966) and PARRY (1972). Other companies explore ways how they can use chatterbots internally, for example for Customer Support, Human Resources, or even in Internet-of-Things (Io T) projects.