Have you always wondered how chatbots work and what possible use cases they have? Go through our insightful report and feel free to contact us in case you want to know more!

1. TECH ON TREND:
CHATBOTS
T R E N D S & A P P L I C A T I O N S

2. CHATBOTS
In 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 chatbots
are as smart as they are
programmed to be, responding only
to specific pre-defined commands.
Machine learning-based chatbots
process and understand natural
language, getting smarter by
learning from conversations. They
interact in a more human way.
Chatbot Types The Chatbot Ecosystem
Native Agents
Deployment
Channels
Conversational
Interfaces
Sources: BI Intelligence, O´Reilly, CB Insights
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3. THE RISE OF CHATBOTS
History & present
1966 ELIZA
Mimicked human conversation by
matching user prompts to pre-
scripted responses.
1950 The Turing Test
First theory that an intelligent
machine could communicate like
a human via text conversation.
1972 PARRY
Advanced 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 SMARTERCHILD
The 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 channels
Messaging apps
Third-party bots
Native bots
2.
2014: 13 bn messages/ day
2016: 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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4. APPLICATION FIELDS
Use cases within various sectors
Personal Assistants
Productivity tasks,
Weather bots,
Health & sport applications,
Groceries & cooking,
News & updates
Marketing
Visitor management,
Site feedback, Lead
qualification, Lead
nurturing, Guidance,
Negotiation, Analytics
Productivity
Personal 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
Customer
Applications
Travel
Flight assistants,
Reservations & bookings,
Taxi bots,
Travel info & updates
E-Commerce
Ordering & shipping, Shopping
assistants, Personal shoppers,
Price alerts, Gift assistants
Leisure & Entertainment
Food orders & delivery, Restaurant
finders, Movie reservations, News
& weather forecasting, Photo &
video editing, Event ticketing,
Gaming
Finance & Legal
Stock bots, Legal assistants,
Finance & account assistants,
Insurance (filing a claim,
support)
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5. APPLICATION ADVANTAGES
Do 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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6. TRENDS & FUTURE
What’s happening in the chatbot space?
Investment in
2016
$227 Million
192 startups
Investment
Since 2010
$ 480
Million
Investment in
2015
$99 Million
125 startups
The most active
investors:
Betaworks
Y 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
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7. BEST PRACTICES FROM VIENNA
Players 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
7

8. 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?
8

9. Happy to help!
Natalia Gricovkanics
Consultant
natalia.gricovkanics@pioneers.io
www.pioneers.io/discover
We’re happy to tell you more about chatbots
and how your company might benefit from
them.
Feel free to contact us!
9

10. Technology needs visionaries to make it fly.
Be Bold. Be a Pioneer.
pioneers.io/discover
@pioneers @pioneersfestival pioneers.io
ADVISORY FOR STARTUP-DRIVEN INNOVATION