Victoria University: NIT6130 AI Chatbots Business Research Report

This report, submitted by a student, explores the application of artificial intelligence (AI), specifically AI chatbots, in various business sectors. It begins with an abstract summarizing the knowledge gap, research aims, methodology, and expected outcomes. The introduction provides an overview of existing research and how the proposed research enhances it. The report then delves into related work, discussing AI's applications in healthcare, manufacturing, transport, communication, and economic analysis. It also examines intelligent systems, expert systems, neural networks, fuzzy logic, genetic algorithms, and intelligent agents. A significant portion focuses on AI chatbots, their transparency, and their potential in business. The methodology involves a systematic analysis of a literature review conducted in three rounds. The report also includes a discussion on the challenges of AI implementation and provides examples such as Siri and stock market systems. The appendix includes a detailed literature review with three rounds of broad scans and readings. Overall, the report provides a comprehensive analysis of AI chatbots and their impact on modern business, including a research proposal and literature review.

6/3/2019
Artificial Intelligence in business
Student’s name
Institution Affilliation

Table of Contents
1. Abstract............................................................................................................................................2
2. Introduction......................................................................................................................................3
3. Related work.....................................................................................................................................3
4. Proposed Research: The impact of using AI Chat bots in business.................................................8
4.1 Problem statement......................................................................................................................8
4.2 Aim of the research.....................................................................................................................8
4.3 Expected outcomes and significance..........................................................................................8
4.4 Method and innovation...............................................................................................................8
4.4 1 Margins for AI Chat bots...................................................................................................10
4.4.2 Future for chat bots............................................................................................................10
5. Conclusion......................................................................................................................................11
6. References......................................................................................................................................12
7 Appendix.......................................................................................................................................13
Appendix A. Literature Review – Broad Scan and Reading (minimum 3 rounds)......................13
Round 1 – Literature Review......................................................................................................13
Round 2 – Literature Review......................................................................................................16
Round 3 – Literature Review......................................................................................................18
1

1. Abstract
Presently, artificial intelligence has found application in various sectors in society to
enhance efficiency in day-to-day activities. In computer science, technological advances have
established an effective means of performing quick statistical analysis, which can be used in the
discovery of patterns in areas of study. Such has been employed in metrological facilities to predict
weather patterns accurately within a limited period. Similarly, tactical patterns can be formulated
using the advancements in AI research during times of war. AI has allowed the use of unmanned
warfare tactics as evidenced by the use of remote-controlled drones for surveillance and
pacification of an area of interest. Military drones are hardly detected by radar, and thus, they can
fly stealthily over enemy territory to deliver air strikes or gather information. In addition,
mechanical robots have been developed with the capacity to deliver ground assaults or disarm
explosives via remote control. These aim at minimizing the number of casualties during tactical
situations. The current research has not dealt with AI chat bots and AI assistants in depth as these
are emerging applications of AI thereby creating a gap that is worth researching about. This
research proposes the use of chatbot in various business sectors and will use the methodology of
systematic analysis of the current literature review from various digital libraries. The review will
be done in three rounds to filter all the relevant information to this research.
2

2. Introduction
Artificial intelligence requires skills of understanding how knowledge can be represented
and the methods of how to use that knowledge. The main aim of AI is to improve human life and
reduce risks faced by humans. According to the late pioneer of Artificial Intelligence, Allan Newell,
man-made world would be permeated by systems to cushion it from danger. With the advent of new
age computers, the dream of smart computers has become a reality.
There are many resins and advantages of why people should study AI. One of the main ones
is because scientists want to extend the range of things and tasks that can be performed by
computers. The ‘ability’ of computers keeps growing with changing times. The limitations are
virtually boundless. The other main reason is the interest in technological applications in the AI
field. These spread out to all disciplines that use any form of computers or electronics to achieve
tasks. Examples of these fields include; Medicine, manufacturing, farming, education, housework,
research and development, and science in general. In business, computers are also very helpful and
essential. Due to the intelligent and adaptive nature of AI, systems can help locate pertinent
information (He et al., 2019).
3. Related work
AI systems have found application in healthcare facilities in the diagnosis and treatment of
various health conditions. Diagnostic systems are based on AI technology to provide automated
diagnosis methods as illustrated by the availability of various equipment such as the MRI, CT, PET,
and x-ray machines. In addition, medical laboratory equipment heavily relies on automation for
analysis of biological samples to render diagnosis results. These systems provide efficiency in the
healthcare services by offering quality and accurate diagnosis of the different disease condition,
which adds value to healthcare. Life support equipment such as ventilators, dialysis machine, heart-
lung machines is illustrative of the success in the application of AI in the health care sector (Allam
& Dhunny, 2019).
3

Most manufacturing industries rely on automation for their operations, and as such, AI
technology is employed to handle heavy assembling procedures. This technology is credited for
effectively handling highly repetitive procedures, which often lead to mishaps or errors if humans
are involved as a result of a lapse in concentration.AI technology not only helps in scheduling
manufacturing operations but also in performing quality control. Application of AI technology has
improved productivity in most industries with large-scale assembly lines.
The presence of artificial intelligence systems within the transport and communication
industries facilitate smooth operations by handling an enormous number of computations per
second. Most telecommunication companies utilize heuristic search systems to manage their
workload and create efficient schedules for their workers. In addition, customer service providers
have adopted AI technology to respond to numerous calls made to them by customers seeking
clarification or new information. The transport industry embraces AI technology to ensure
reliability, safety, and a pollution-free environment (Corinne, 2018). This especially so since AI
technology addresses most challenges that face the transport industry. As such, AI technology is
used in control towers to plot and schedule take offs as well as landings. Automobile traffic has
effectively been controlled by AI systems through traffic lights. The technology also allows the
mapping of traffic snarl-ups and advice on alternative routes to ease the flow. In addition, most
modern electric trains are automated to ease transportation of passengers and improve the efficiency
of the services rendered.
The economic growth of any country requires detailed analysis during the assessment of
development potential and evaluation of the social status of its citizens. Such assessment is critical
in the determination of the gross domestic product to aid in the estimation of the economic growth
rates. It is also essential in the formulation of policies that are geared towards the improvement of
the economic status of the country (Davenport, 2018). These evaluations are possible through
artificial intelligence systems that effectively compute all variables to provide an accurate
assessment. Similarly, banks make use of AI systems to process finances, invest, and manage stocks
4

on behalf of their clients. Investors in stocks also utilize AI technology to analyze markets and
predict future trends.
Artificial Intelligence computers are commonly known as intelligent systems. This is
attributed to their ability to learn from examples and use the statistics or data fed to them to solve
problems. Most learning programs are either experience or data oriented. The systems use a
knowledge base created with many different aspects to simulate experiences. These experience
oriented systems use common sense knowledge to discover how people usually reason about new
experiences. This stimulates a reaction. Data-oriented systems create programs to search
specifically and mine for data in databases to get exploitable regularities. These intelligent systems
can give answers to questions using free text and structured data. AI is becoming essential to us and
yet less conspicuous. The rapid development of this field has helped business people achieve
strategic business goals (Miller, 2019).
Expert systems are computer systems that imitate the decision- making the ability of a
human expert. They are the most common form of AI because they can be used when humans may
be too expensive or hard to find. Some examples of expert systems would be a computer chess
player or medical diagnosis system which help doctors. Neural networks, which are also referred to
as artificial neural networks, are used to mimic how the human brain works. They are used to
estimate patterns when there is a large amount of data the rules are unknown. An example of neural
networks is that credit card companies use them to check for fraud. Fuzzy logic, which is a form of
logic which deals with reasoning, is also used with neural networks, so it is easy to simplify a
complicated concept.
Genetic algorithms mimic the process of natural selection. They are best used in decision-
making environments when there are many solutions possible and can find those solutions
extremely faster than a human would. An example of generic algorithms would be to help
investment companies use them to help them in deciding which trading decisions to make.
Intelligent agents are used to performing particular jobs on behalf of their users. The most simple
5

form of this is a shopping bot, which searches the internet for a product and compares prices and
also if it is in stock. When there are a group of intelligent agents, this is called a multi-agent system,
which each system works by themselves but can also easily work with each other together if needed
(Mazurowski, 2019).
Virtual reality is when a computer can simulate physical presence in places that are in the
real world or imaginary worlds. They can recreate the senses of taste, sight, smell, sound, and touch.
A great example of this would be virtual surgery where the surgeon and patient can be anywhere in
the world and still perform surgery. Another big examples are virtual workplaces where some
employees work in the office and other work from home.
Chat-bots are intelligent software that is coded to enable verbal and textual conversations in
a manner that is intelligent and logical. In most cases, it is hard for humans to believe that they are
not holding a discussion with a machine. Utilization of this property of transparency of Chat-bots
can allow for the adopting of artificial personalities and characters within a specific field. This study
is primarily focused on evaluating Chat bots that have implemented artificial intelligence platforms.
Time is one of the main assets which is genuinely dispersed among all people regardless of their
religion, educational qualifications, gender, and geographical location, and so on. Be that as it may,
a few people achieve zeniths of accomplishment whereas others regularly remain excessively
involved in their daily exercises with no time left to something out of their schedules
The AI field has been incorporated in many industries, and this has brought about their
growth. This incorporation is by the development of intelligent agents that are set put into
completing the different tasks and requirements needed by the field. This, however, does not come
without challenges. Some of the challenges faced include; the need for information exchange with
databases in the mainframe. The need to provide rapid hardware recoveries should failures occurs a
major function of AI that presents many challenges (Becker, 2019). The need for effective
information distribution to all personnel involved in system development is another crucial function
that is challenging. These are some of the problems that should be addressed to achieve the
6

successful implementation of an AI system. Some examples of successful implementation are
discussed in the following paragraph.
Siri is an application developed by the Apple Company to help users interact better with
their mobile phones. It is considered an intelligent agent that acts as a personal assistant and has
access to knowledge navigation. The main platform used for user interaction with the device is the
use of natural language. The user issues a command to the phone via the voice interface, and the
application sends the requests, delegating to different web applications, to perform these tasks. One
of the main characteristics of intelligent systems is being adaptive, and this is shown here. The
application adapts to the user's schedule, and preferences over time and automatically generates
results. These include places to eat, alarms, favorite music, directions, and other individual
preferences (Abduljabbar, Dia, Liyanage, & Bagloee, 2019).
The development of Siri involved a lot of data collection to create the appropriate responses
that it gives to queries by the user. This involves programming that recognizes a particular set of
words that simulate a response. This database is run online, and the environment is constantly
updated to keep the responses relevant. As the application continues to operate, Apple keeps
collecting information from it to improve its performance. The more users interact with Siri, the
more the information Apple will collect, leading to better responses from Siri.
Another example of an intelligent system is the stock market system. In the stock market,
shares change value virtually every second. Computer systems were developed to monitor these
changes and help traders make correct choices about their stocks. These intelligent systems are data
oriented in that they collect all the relevant data about the stocks and generate responses
appropriately and accurately. These systems are common in Wall Street, where a lot of the stock
exchange takes place (Chen et al., 2019).
In the military, a lot of data collection and intelligence is also necessary. Most of the data
gathering and surveillance is done by drones. These are intelligent drones programmed to only
monitor. They are usually sent to places where human surveillance is not very east. This is an
7

example of the application of intelligent systems. The military leads in research and development of
new systems to improve human lives and reduce the risk posed to soldiers during wars.
4. Proposed Research: The impact of using AI Chatbots in
business
4.1 Problem statement
Some questions asked by users may be answered incorrectly or not answered at all, too
many questions and how long a question is testing the chatbot to its core, also too many unanswered
questions may lead to a phone call to further understand the requirements of a customer which is
less preferable (Kalis, Collier, & Fu, 2018).
4.2 Aim of the research
The main aim of the research is to study and further elaborate both usage and flexibility of a
chatbot in action, the chatbot is able to keep a conversation up and be able to respond to whatever
the user says or may imply base on his choice of words and what the user expects as an answer in
return.
4.3 Expected outcomes and significance
Chatbot has been around us for some time and implemented, and in some point of our lives
we’ve used them first hand, and they need an enhancement when it comes to cost efficiency,
response time and answer accuracy.
4.4 Method and innovation
The Chatbot is an AI-based chat option, by which businesses can now make their own chat
representative for the Messenger to tackle the most reasonable queries by the customers. Chatbot
development creates chatbots, which is nothing but austere software that interprets anything you
type or say and accordingly respond by answering or executing the command. A most popular
example of a bot in Chatbot development currently is Apple’s Siri. But Facebook has taken a leap
from these personal bots by amalgamating two most popular technologies – instant messaging and
artificial intelligence.
Technology is taking over the world, and chatbots are riding the wave. With social media
power in digital marketing space, there has been an increased technological advancement on the
8

power of chatbots. The rapid rise in chatbots, artificial intelligence, and machine learning is
overwhelming among tech consumers. They find it convenient to communicate with their preferred
brands and companies through chat bot interactive messenger mimicking the real people’s
conversations (Allam & Dhunny, 2019). What follows, is, do these chatbots really assist individuals
in remaining productive in their workplaces?
Consider a scenario where you will require some help to complete a particularly complex
task. Take, for instance, traveling that will require you to book flights, make hotel reservations, and
call a cab. At the same time, you need to interact with some people to plan for this trip. A single bot
can do this, or several chatbots can do it comfortably at your office. E-commerce support platforms
have been integrated into existing social media platforms by availing products to customers upon
search or giving recommendations on tailored products on their messaging account profiles.
Facebook messenger has traversed the conversational thread to include peer-to-peer payments by
creating a full chatbot API. End to end customer interaction is just one click away. One can make
online orders and transact via the app.
Employees in companies are assisted by chatbot software to conduct their everyday tasks.
Siri or Echo software has been known to give accurate time, weather updates or order swift Uber
rides. The Hello Jarvis bot, for example, is a messenger that reminds workers to get some sort of
work done. The bot will remind an employee the exact time a certain task needs to be done. This is
done through text notification rather than voice instructions. Workers find it more convenient and
efficient in their daily operations (Davenport, 2018).
Human employees are provided with diverse reforms on certain procedures that are time
costly and energy consuming in their executions. Companies are utilizing chatbots, such as kukie to
help new employees in their full training periods. Kukie bot offers free recommendations to a
beginner on which tools to use or procedures to follow. This is done through a click, “ask
@KukieBot,” while the messenger is being updated with the necessary information.
9

Several companies hire robots that work exactly like human beings. These chatbots do not
require salaries or any benefits. Also, due to the complexity of machines, they are commanded to
think like human beings rendering some human capital roles out of service. Through this,
businesses save money, time, and other resources as well as increased productivity.
4.4 1 Margins for AI Chatbots
As for any technological invention, chatbots have come up with associated problems too.
Chats bots have been known to fail to understand specific requests, as user requests do not come
with a different form of the question. Turing tests exposed a limitation in this artificial intelligence.
It highlighted the challenges developers will face when building chatbots and instructing computers
on how to interpret the written words. Chatbots, therefore, have to be comprehensive in order to
understand informal language, local jargon, an official language (Becker, 2019).
While implementing a chatbot, one needs to consider a scenario where employees need to
stop and rectify a mistake committed by a chatbot. To fix this mistake, it will cost time and money
for you and your worker.
4.4.2 Future for chatbots
The fast advancements in technology are a bonus for the chatbots since they will soon
analyze different languages better. They will have more features and exhibit increased performance.
Growth in the application of chatbots and overwhelming increase in usage is promising. Businesses
will benefit from the use of chatbots and the employees to can utilize the power of bots to handle
tasks swiftly. However, appropriate monitoring and enhanced learning software ought to be initiated
continuously. Clearly, chatbots have an impact on productivity levels of workers; it just depends on
the business model in question (Abduljabbar et al., 2019).
Artificial intelligence promises a bright future is owing to the enormous research within the
discipline and the advances made. Presently, AI has become an integral part of everyday life as
witnessed by heavy reliance on machines to perform most tasks. Research into intelligence is bound
to lead to the development of heavily intelligent robots with the capacity to perform independent
actions. The robots would have the capacity to think reason and make independent decisions. In
10

addition, technological advances may lead to the merging of biological beings with machines to
create cyborgs. This can be applied in healthcare to provide solutions to ailing persons where
mechanical devices are used to replace the defective body organs such as the heart, kidneys, liver
among others (Kalis et al., 2018).
5. Conclusion
Artificial intelligence is rapidly improving in development and growth. It has been
embedded into most systems, to improve performance. My analysis and opinion of AI are that the
integration of intelligent systems has led to tremendous growth in different industries. With time,
most computer systems will be converted to intelligent systems. This is the goal that scientists are
working towards. With the analysis of the example discussed in this essay, it is evident that
Artificial Intelligent systems improve lives and will continue to do so. The criteria followed to
achieve successful application include, clear problem definition, implementation of a procedure to
achieve a task, the feasibility of the solution to be applied, and opportunities brought with it. With
this guidance, AI application can be made successfully.
Artificial intelligence is when a computer can imitate the knowledge or skills of a human.
The five most common kind of AI can do various things, such as mimic natural selection or even
simulate the real world. They can all help with making decisions when it comes to a business, for
example, the intelligent agents can be used by a company to help its users see whether they truly
have low prices on items the customer wants or neural networks can help determine what products a
customer may like based on the previous history. Artificial intelligent programs and Chats bots have
been used to obtain data-delivered results in call centers. They, therefore, help customer service
agents solve frustrations from their customers. Therefore, instead of relying on front office desks to
handle your request, you can rely on a chatbot to solve some situations such as bookings and orders.
The chatbot will do it with a simple text to command on the request.
11