See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/356487897 Modern Development Trends of Chatbots Using Artiο¬cial Intelligence (AI) Conference Paper · October 2021 DOI: 10.1109/ITMS52826.2021.9615258 CITATIONS READS 14 1,744 6 authors, including: Julija Skrebeca Andrejs Romanovs Riga Technical University Riga Technical University 2 PUBLICATIONS 14 CITATIONS 79 PUBLICATIONS 669 CITATIONS SEE PROFILE All content following this page was uploaded by Andrejs Romanovs on 09 December 2021. The user has requested enhancement of the downloaded file. SEE PROFILE 2021 62nd International Scientific Conference on Information Technology and Management Science of Riga Technical University (ITMS) | 978-1-6654-0615-4/21/$31.00 ©2021 IEEE | DOI: 10.1109/ITMS52826.2021.9615258 Modern Development Trends of Chatbots Using Artificial Intelligence (AI) Julija Skrebeca Institute of Information Technology Riga Technical University Riga, Latvia julija.skrebeca@gmail.com Paula Kalniete Institute of Information Technology Riga Technical University Riga, Latvia paula.kalniete@inbox.lv Janis Goldbergs Institute of Information Technology Riga Technical University Riga, Latvia j.goldbergam@gmail.com Liene Pitkevica Institute of Information Technology Riga Technical University Riga, Latvia liene.pitkevica@edu.rtu.lv Darja Tihomirova Institute of Information Technology Riga Technical University Riga, Latvia darjatihomirova3@gmail.com Andrejs Romanovs Dept. of Modelling and Simulation Riga Technical University Riga, Latvia andrejs.romanovs@rtu.lv Abstract—It is said 80% of business owners will use chatbots in the future. Chatbots become more and more popular in terms of business, that is why it is necessary for businesses implement innovative approaches to provide customer service twenty-four hours. Such business especially is needed in terms of the challenging Covid-19 times. Artificial Intelligence-powered chatbots can work as intelligent teaching systems, for providing a personalized way of learning for students. Chatbot reviews student's responses and his learning progress. One of the most convenient features of chatbots is the opportunity to send lecture materials in the form of messages to students as if it is just a chat with a friend. Apart from personalized chatbot usage in the studying process, it can be used to streamline business processes, e.g., such as sales. Nowadays chatbots are able to help customers to search products they need, place orders to the cart and pay for it, and track delivery processes of orders. Chatbot intelligence is being developed every day and every year now, so very soon chatbots will be able to perform even more difficult tasks to make the life of the user easier. In this paper, authors will deliver theoretical materials and historical background of chatbots, describe classification and techniques of chatbots, then describe the modern development trends of chatbots using artificial intelligence (AI), and finally discuss the role of chatbots in education and e-commerce. Keywords— artificial intelligence (AI), chatbots, covid-19, ecommerce, education, trends I. INTRODUCTION A chatbot can be represented as a computer, program, algorithm, or artificial intelligence which the main goal is a communication with a person, or another interlocutor. Chatbots might be developed to communicate by replying to simple keywords or to interact with a user by supporting specific topics. They can be used for a customer service, marketing, advertising, entertainment industry, data collection etc. For example, a chatbot can communicate with customers in online shops and help them to find the product they need. In this paper, authors have done research in chatbot history to find out how the first chatbots were made, which methods were used, and how much chatbots have been enhanced in the last few decades. Also, the authors have referred to the most common methods and techniques that are used to create a chatbot. In this paper, there is mentioned classification of chatbots and offered both classification and methods to actual chatbot trends in the Covid-19 era. 978-1-6654-0615-4/21/$31.00 ©2021 IEEE The term chatbot – chat(-ter) bot was invented by Michael Loren Mauldin. According to Shawar and Atwell’s simplified definition, chatbots are artificial intelligence-assisted chat applications whose functions range is from answering simple questions to participating in complex conversations [10]. A chatbot is a software application that helps to carry on a conversation using text-based or auditory methods [5]. Programs in Chatbots are developed to mimic human conversations. Chatbots are used for variety of purposes, including customer service, routing request, and information retrieval. By using Natural language processing, some chatbots can be used for word classification. The simplest botts processed basic user messages and requests. In a posted conversation with the user, with an algorithm, it responds with pre-programmed answers. Chatbots are most frequently used by dialog systems, such as customer support. Artificial Intelligence (AI) simulates human intelligence in the form of various devices. Such AI devices are developed to behave as humans do and imitate their actions. Artificial Intelligence stands for machines that exhibit natural characteristics similar to the human mind, such as problem solving and understanding. Natural Language Processing (NLP) is the program interface that allows computers and humans intercommunicate with each other. NLP makes it possible for computer to analyze vast amounts of language data from different sources. NLP technique developers can improve the chatbot knowledge to process various tasks such as text analysis, stemming, text summarization, automatic summarization, topic extraction, text mining, speech recognition, translation, segmentation, and automatic question answering. NLP combines two techniques – natural language generation (NLG) and natural language understanding (NLU). NLP is one of the forms of the Artificial Intelligence that enables chatbots to process users’ text or audio messages and give a proper answer. NLP has the following layers: • Application. • Data Storage. • NLP Engine. • Platform for Data Lake. NLP contains two important techniques to work properly: • NLU – Natural Language Understanding maps user given input to its useful representations. It analyzes unusual phenomena of language. • NLG – Natural Language Generation is used for text and sentence planning, mining, and text realization. NLU is the process of generating meaningful responses in the form of natural language, and includes: • Text planning retrieves important data from the database. • Sentence planning selects the required words, produces relevant phrases using these words and creates meaningful sentences. • Text implementation is the flow mapping of the sentence according to the sentence structure. It is much harder to realize Natural Language Understanding process than execute the Natural Language Generation process. Natural Language Toolkit (NLTK) was programmed for the creation and application of symbolic and statistical NLP in Python. It is a pack of libraries that include parsing and classification of text, text processing for tokenization, stemming of words, and reasoning about semantics. Keras is an API library for neural networks in Python. It combines well with R, PlaidML, TensorFlow, and the Microsoft Cognitive Toolkit. Tkinter is an interface for developing graphical user interface (GUI) applications. Tensorflow is a software library framework that focuses mainly on machine learning. It uses data flow graphs and differentiates programming across different numbers of tasks to build models. It is used to create large-scale development applications including neural networks. It is mainly used for classification, understanding, prediction, and creation. Nowadays there are many chatbots, but how did they start? What was the first chatbot? Eliza is one of the most famous and at the same time oldest chatbots invented by the Artificial Intelligence Laboratory in MIT, dating back to 1964. Eliza inspired many developers in the field to develop their own chatbots. In the early scenario called DOCTOR, the chatbot Eliza has the role of a Rogerian psychotherapist, asking open-ended questions, which she also answers, drawing attention from herself to the user. PARRY is another well-known chatbot developed in 1972. This program, which diverts attention from itself, uses an opposite strategy than Eliza. It does not behave like a doctor but like a paranoid schizophrenic patient. It tries to provoke controversy and makes the interlocutor give more detailed answers [1]. Racter is another knowable chatbot (short for raconteur – a storyteller). This Chatbot generates prose in the English language. Prose can be a short text, not written in the verse, in which the authors present fragments of their existential experience. This chatbot uses logical sentences based on its knowledge and makes conclusions one by one. A good example was written by Racter: “A crow is a bird, an eagle is a bird, a dove is a bird. They all fly in the night and in the day. They fly when the sky is red and when the heaven is blue. They fly through the atmosphere. We cannot fly. We are not like a crow or an eagle or a dove. We are not birds. But we can dream about them. You can.” [1]. The same method was used with a chatbot called Jabberwacky designed to mimic a natural human conversation using a voice-activated system. Another milestone in the development of chatbots was called Dr. Sbaitso chatbot. It was able to synthesize speech – in some ways it became even more human-like than its predecessors, even if it could not converse in a more complicated and complex way. Such problem of chatbot communication insufficient complexity still exists today. Kuki - one more chatbot that needs to be represented (formerly known as Mitsuku) that claims to be a young girl of 18 years from England [9]. Kuki is developed using AI MarkUp Language and both - Retrieval and Generative-Based approaches which allows her to imitate a human conversation, avoiding answering the same question over and over again. The most popular chatbots at the time are chatbots that are used for e-commerce and e-education solutions. There have always been difficulties in communication between customer and seller or student and teacher as sometimes there might be situations where employees' workload is huge and answering all these questions can cause a big delay although most probably the question can be answered quickly, and the information might be found easily. This is where chatbots can be helpful to reduce communication problems in terms of response time. An e-commerce chatbot can assist to find the product that a customer is searching for or help to fill a parcel returning template. For students, chatbots can answer questions that are related to due dates or requirements in a specific subject. Chatbots are very common nowadays and they are going to improve and become more helpful and necessary in the future. Currently, there are plenty of well-known chatbots that are used in daily life. For example, Siri – a virtual assistant of iOS interface that uses natural language to answer user inquiries and perform web service requests. Google Now is another mobile application for Android and iOS devices that provides Google-developed predictive maps with information and daily updates to automatically answer users’ questions. Cortana the Windows voice platform with information that helps software and hardware developers. Chatbots for Messenger a program that uses Artificial Intelligence (AI) to realize an interaction with customers. Facebook launched the platform to allow developers to produce chatbots that are able communicate with Facebook users through the Messenger chat interface. Messenger chatbots understand users’ questions and formulate responses in a very human way [3]. Nowadays, functional chatbots are no longer a rarity. They are being developed more and more advanced. One more interesting project is Sophia, the chatbot that hides behind the appearance of a humanoid female robot with highly advanced facial expressions [1]. Interesting research was done by a group of students from the Philippines - chatbots also can help to deal with emotional traumas during rehabilitation or as a prevention of an emotional breakdown by simulating empathy [6]. Such chatbots have two types of perceived input data - typed text and user’s facial expression transmitted via video. For now, such chatbots powered by Deep Learning can recognize neutral, happy, and sad users’ facial expressions with 16.7%, 66.7%, and 56.7% accuracy respectively. The combination of textual and video data input provides a chatbot with sufficient information to create a proper answer in a certain conversation. So, it is even possible that in the future chatbots will be able to assist psychologists or even psychiatrists during patient treatment. II. CHATBOT CLASSIFICATION AND TECHNIQUES Chatbots are classified (Fig. 1) by their interaction, information gathering, and usage goal types, e.g., Text-Based and Voice-Based for interaction mode, Open Domain and Closed Domain for knowledge domain, Task-Oriented and Non-Task-Oriented for goals, and Rule-Based, RetrievalBased, Generative-Based for design approach [7], [9]. Some of them are shortly described further. Task-Oriented chatbots (e.g., Alexa, Cortana, Siri) goal is to help a user to fulfill his task. Task-Oriented chatbots work in restricted domains and are made to help with a hotel or flight booking, create a schedule, or find specific information, etc. Non-Task-Oriented chatbots can handle an extended conversation with the user, which helps to create a feeling of interaction with a human. These responses of chatbots can be divided into two approaches – Generative-Based (generates more proper responses during the conversation) and RetrievalBased (learns to select more informative responses from a repository of a current conversation). None of them can answer if there is no pattern for that question, because they do not create responses, but only take predefined ones. Domain-Specific chatbots, which include Open-Domain (used for a non-specific conversation) and Closed-Domain (conversation has a specific goal) Approaches, are used in specific areas (e.g., education and health care) which helps to raise their efficiency and quality of given answers. Text-Based and Voice-Based chatbots differ by their interaction type with users. Speech-to-text is one of the most crucial functions in any competitive chatbot and its improvement. The basic idea of speech-to-text consists of criteria like vocabulary size – the number of words in vocabulary which are millions from different languages. Another criterion is speaker independence or in other words chatbot’s ability to recognize speakers. Co-articulation is an important part of speech-to-text because a chatbot must have the ability to process a continuous stream of words that requires segmentation and tokenization of the speaker’s input. The chatbot must handle noise to filter out background noises and must be able to understand input when a person is talking at different distances from the microphone [4]. Fig. 1. Classification of chatbot development approaches There are Rule-Based and Self-Learning (includes Generative-Based, Retrieval-Based Approaches) chatbots [7], [9]. Any of the two Self-Learning chatbot approaches can have different techniques such as: • Parsing method chooses exact words from the input text, makes them less sophisticated, and uses them for output. • Pattern Matching method takes as a pattern user’s input and gives him the most suitable response stored in the template. • Artificial Intelligence Mark-up Language is made of data objects (AIML elements) that consist of topics and categories. Categories have patterns (matches the user input) and templates (creates an output) which provide a flexible conversation. • Markov Chain Model uses probabilities to know what kind of input data will be given to a chatbot next. Mostly used for imitating simple human conversation. Cannot be used for an extended conversation in a specific area. • Artificial Neural Networks Models were made to develop smarter chatbots and can use both Generative-Based and Retrieval-Based approaches. Such chatbots learn how to interact from conversations with a human. Deep Learning allows imitating a human brain's work to process given data and produce new patterns. Even though none of all chatbots passed the Turing Test since the first one (ELIZA) had been invented and chatbots based on Deep Learning are not an exception, nowadays the most promising technique for chatbot development is Deep Learning. It is believed that Deep Learning combined with a Retrieval-Based Approach can improve the chatbot intelligence and give results that will show a significant difference compared to previous results. III. CONTINUOUS IMPROVEMENT STUDY OF CHATBOT TECHNOLOGIES USING A HUMAN FACTORS METHODOLOGY A usability test was conducted to compare the usability of three chatbot platforms – Watson by IBM, Pandorabot by Pandora, and Verbot [2]. The research study was done by using these methods: • Gathering demographic information of participants. • Pre-test questionnaire. • Video and/or audio record chatbot sessions. • Post-test questionnaire. For the purpose of the research study, the feedback was obtained from ten participants and then assessed using a System Usability Scale (SUS). Results indicated that Watson by IBM was perceived as the most user-friendly platform overall. Watson received an average SUS score of 81.875 out of 100, Pandorabot scored 88.75 out of 100. Verbot did not receive a SUS score as far as none of the ten participants chose this platform. While Pandorabot scored higher at SUS, 80% of the participants preferred Watson platform. The statistical discrepancy between these participants’ responses was attributed to the fact that only a small group of participants chose Pandorabot. Research results showed that Watson by IBM is the chatbot that best matches with human factors analysis. Watson chatbot had perceived intelligence, a simplified atmosphere, and was chosen by 80% of participants. IV. CHATBOT STATS AND TRENDS SHAPING BUSINESSES IN 2021 In many service industries chatbots are used to answer customers’ questions and help them navigate a company’s website. Well-developed and sophisticated chatbots rely on machine learning, which is a computer program that continually improves through its usage, and Natural Language Processing (NLP), which helps solve the problems of mimicking human-generated text and speech. Chatbots that feel increasingly humanlike are already being widely deployed. It all happens thanks to Natural Language Processing (NLP). NLP allows chatbots to interact with users using in complete sentences that have a natural conversational flow. Dialects, small sounds, deliberate pauses, or even misspelling can help customers feel more comfortable. Like that conversation seems to be more realistic and lifelike. This, in turn, makes customer service easier for everyone involved and helps companies further improve customer experience and loyalty [14]. It is important to avoid any misunderstanding when a chatbot must give correct and important information. The main chatbot challenges are: • Misunderstanding requests. Chatbots often misunderstand users’ requests because they are unable to understand the will of the consumer. • Inaccurate execution of commands. Chatbots cannot respond to any technical commands issued by customers. • Difficulty understanding accents. Chatbots are not yet able to understand accents or dialects to identify the correct intent of the user [13]. AI technology is evolving every day, which suggests that chatbots are also subjects that are in a constant state of change. Nowadays, there are some chatbot trends in business and other areas. The statistics show that the healthcare, finance, travel, education, and real estate industries are benefiting the most from chatbots: • By 2021 about 80% of businesses are expected to integrate some form of chatbot system. • Chatbots are able to help businesses save up to 30% on customer support costs. • The market value of chatbots was $703 million in 2016. • More than 50% of customers expect businesses to be open and answer their questions 24/7. • Chatbots are popular among both – Millennials and Baby Boomers. There are more than 300,000 active chatbots on Facebook. Exist four main issues that contribute to skepticism about the chatbot usefulness. Quite simply, chatbots cannot execute technical commands that the user types. Unfortunately, for now chatbots are unable to properly process a customer’s intent, resulting in misinterpreted queries and responses. Chatbots do not have enough of conversational intelligence, meaning they often do not process the implied details of a dialog, resulting in an inadequate conversation. As well, chatbots are unable to understand different accents and cultural meanings to provide a correct response. AI chatbot trends are poised for profound change that will impact several key business processes. These processes include: • Automation of business processes. • Prediction of costumer behavior. • Recommendation of products and services. • Streamlining customer support experiences [16]. The increasing expectations of twenty-four hours chatbot availability means that chatbots must be able to analyze user’s speech, text, and even facial expressions. Eventually, chatbots will be used in a variety of consumer applications and internal business functions [8], [15]. V. CHATBOT ROLE IN EDUCATION The use of chatbots in education would make life easier during Covid-19. When all training in the educational establishment takes place in remote mode. The use of chatbots could send statements about exams and systems could help with the understanding of the teaching substance. The Institute of Technology in Georgia, USA received around 10,000 questions about the conduct of training. The number of questions was difficult to answer in time. So, Ashok Goel invented the chatbot Jill. Chatbot answered many different questions: about the format of the exam, possible topics, and deadlines. Teachers answered difficult questions, but an algorithm was invented for simple questions. The chatbot was trained on 40,000 specific issues raised over the past few years. When the answers generated 97% accuracy, Chatbot went online [10]. VI. CHATBOTS ROLE IN E-COMMERCE AND EVALUATION METHODS E-Commerce has grown in Latvia during Covid-19. This has significant implications for society and business worldwide. Consumers are attracted to the fact that there is a wider choice of goods at much lower prices than customers would pay in a local shop, as well they are attracted by the idea that they can shop anywhere all around the world, taking advantage of exchange rates and economic differences. But there is also a significant disadvantage, e.g., many customers, mostly people from older generations, do not trust online shopping on the Internet, because they cannot check the quality of the product and ask about the warranty [11]. The chatbot would help preserve the cash of various large e-shops, by starting to use advisers to answer client questions. And therefore, it is crucial to be able to determine how good your chatbot is. There is a wide variety of chatbot evaluation methods that determine the performance of commercially available chatbots. This paper describes two - PARADISE and Kuligowska. PARADISE estimates subjective factors such as ease of usage, clarity, naturalness, friendliness, robustness reading misunderstanding, and willingness to use the system again. This framework maximizes task effectiveness and minimizes dialogue cost by determining overall performance: Chatbots for educational processes (Fig. 2) should have knowledge in a specific area be it math, physics, and chemistry, or literature, music, and geography. ππππππππππππππππππππππ = ∝ ∗ ππ(ππ) − ∑ππππ=1 ππππ ∗ ππ(πΆπΆππ ) where α is the weight on k, each cost function is weighted by Wi and N is a Z score normalization function. Kuligowska method measures the chatbot in 8 categories – visual look, implementation way of chatbots, either it is a built-in window, pull out tab or both, giving the highest score for both GUI. This framework quantifies the bot’s ability to produce speech, either it has a unique custom voice, has text-to-speech modules without custom voice, or can communicate only with text, giving the highest score for bots with custom voice modules. The fourth category is both abilities to answer domain-based questions like “What products are you selling?”. Are chatbots able to lead a coherent dialogue and understand the dialogue’s context [4]? It is important to not just build and launch a chatbot but to be sure that the chatbot is engaging and helpful, otherwise, buyers would not interact with the chatbot. Statistics say that about 40% of users will stop interacting with a bot after the first message, and 25% of users after the second. To avoid these poor statistics, it is necessary to measure chatbot activity to make sure that the bot is benefiting buyers and driving sales. This analytic data includes basic metrics that indicate the bot’s helpfulness, like retention rates, advanced metrics, and engagement rates to measure sales indication. To be able to collect and analyze sales data, there are several options on how to achieve it, like using analytics tools in chatbot building platforms or integrating chatbot to an external analytics platform [12]. VII. CHATBOT DEVELOPMENT TECHNIQUE Since 1964, when the first chatbot Eliza was invented, chatbots, their classifications, and architecture have been developing dramatically. During Covid-19 pandemic times chatbots became even more popular than before due to the massive digitalization of many industries such as Ecommerce, finance, health care, education, traveling, etc. The research showed the importance of chatbots in everyday life, so it is very necessary to use their capabilities to make our lives better and easier during this tough pandemic time. Chatbots for E-commerce and education will be very useful for businesses and students all around the world, but such chatbots must have special approaches as far as they have different goals of usage. Fig. 2. Educational Chatbot structure Closed-Domain class chatbots, which are used for conversations in specific areas, fit such descriptions perfectly. The Retrieval-Based approach of Self-Learning chatbots will help an educational chatbot to specialize better and generate much more proper responses than GenerativeBased chatbots that tend to create wrong or illogical responses due to its complexity. Educational chatbots must give adequate and accurate information in the context of the educational process, even if communication will be based on predefined and repeated phrases. As a technique, the AI Mark-Up Language - has its own data architecture that consists of objects, topics, categories, response patterns, and templates which is very similar to the educational process, where students have different subjects and topics. Each category has a special rule that matches the user’s input and allows a proper answer. Even though E-commerce chatbots have a little bit different goals and direction of usage, they can have almost the same structure as education chatbots have (Fig. 3). It should be a Closed-Domain class chatbot that will be able to consult clients in any E-commerce area starting with clothes and electronic equipment and ending with trading and insurance. Closed-Domain class allows to have knowledge in a specific area which will enlarge chatbot usage benefits and increase clients’ satisfaction. E-commerce chatbots need to be Self-Learning with a Generative-Based approach to adapt to purchase tendencies and know the user's preferences to offer better products for a certain client. Even though Generative-Based chatbots sometimes tend to “misunderstand” their interlocutor and can make a mistake while responding to the client, it is very necessary for Ecommerce chatbot to give different answers as far as they are not predefined to give client a feeling of communication with a real consultant. Due to a wide selection of goods, the chatbot must “see” differences between two similar products to offer a better one that matches the client's preferences the most. Deep Learning can help to provide such a personalized attitude towards a customer due to its ability to create its own “opinion”, which can help to provide a client with a product or service that client needs. research on chatbot trends connected to the health care and chatbot users’ emotional state. As a result of the survey were defined work principles for educational and E-commerce chatbots. Both are SelfLearning chatbots, but use different approaches, and developed using AILM (for educational chatbot) and Deep Learning (for E-commerce chatbot) techniques which fit the goal of each chatbot. REFERENCES [1] [2] [3] [4] [5] Fig. 3. E-commerce Chatbot structure As an example of a well-developed chatbot was used Kuki (former Mitsuki) which combines Retrieval and Generative-Based approaches and uses AI Mark-Up Language. But the usage of Generative-Based approach in Educational chatbot will not be that suitable due to this approach unstable work. E-commerce chatbot will be less interesting and useful for clients as well, if it will be developed using the AI Mark-Up Language method due to its inflexibility. To sum up, chatbot classes can differ due to goals which chatbots must reach, but nowadays the most popular chatbots are the Self-Learning ones, which can offer dynamic and human-like communication. Among techniques the most progressive and promising are connected to AI, e.g., Deep Learning, which is used in many different areas, has all chances to develop an improved chatbot performance so they can seem to be humans during the conversation. VIII. CONCLUSION E-commerce and education chatbots have different usage goals. In the educational process chatbots help with organizational issues, e.g., they provide students with information about the format and date of exams, possible milestones and their deadlines. In E-commerce chatbots help customers by answering their questions, e.g., inquire about fabrics, ask about delivery duration etc. Even though chatbots can have different goals of usage they can be similar in structure. 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