Chatbots Are Still Missing the Human Element of Conversation, Finds Strategy Analytics

Strategy Analytics | October 27, 2020

The development of conversational agents or chatbots that can engage in empathetic conversation with ‘real people’ has long been a goal of artificial intelligence (AI). But the majority of current mainstream chatbots used to increase customer engagement and reduce costs, are inflexible, prescriptive and unable to work outside of their scope. The inability to express emotion, attitude, or opinion, especially if the chatbot cannot solve a customer’s problem, leads to user frustration and cessation of use.

Exploring key design implications for future chatbots by reviewing recent academic and industry research on conversational agents, a new report from the User Experience Strategies service at Strategy Analytics, “Conversational Agents: Update on Academic and Industry UX Research”, identifies a number of key areas for consideration in the design of future chatbots.

Commented Diane O'Neill, co-author and Director, UX Innovation Practice, “Research has shown that a customer’s emotions have significant influence on their satisfaction with a service chatbot. Consumer reaction to error is significantly influenced by perceived competence and trust. By designing systems that are user-centric and content driven, in addition to preventing recognized non-progress events from occurring, this will provide numerous benefits to the businesses using them.

Commented Kevin Nolan, VP, UX Innovation Practice, “But despite some successes in the development of empathetic chatbots, human-level intelligence is still not fully understood. Building intelligent social chatbots that can understand humans and their surrounding world requires further advances in AI particularly as their use diversifies into critical health related services such as mental health support systems.”

About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need.


That sounds harsh, but it’s a stark reality for modern business. There are plenty of organizations that have ignored the need to change, adapt or innovate. Many were household names and when they faded or failed, they became headline news for all the wrong reasons. The truth is that survival not only depends on the ability to change, but also to change faster than the competition and fast enough to keep up with and satisfy customers’ demands.

Other News

AlphaICs Begins Global Sampling of 'Gluon - Deep Learning Co-Processor' for Vision AI With Superior FPS/Watt Performance

AlphaICs | February 15, 2022

AlphaICs, a leading AI fabless semiconductor company that develops edge inference and edge learning technologies, has announced the availability of engineering samples of 'Gluon' - an 8 TOPS Edge AI inference co-processor to customers in surveillance, industrial, retail, auto, and Industrial IoT verticals which carries best-in-class FPS/Watt performance. Gluon will be shipped with a complete (Software Development Kit) SDK that enables easy deployment of neural networks. The advanced edge inference chip delivers the capability for customers to add AI capability in the current X86 / ARM-based systems, resulting in significant cost savings. Gluon provides the best fps/watt performance in the market for classification and detection Neural Networks - 32 Frames Per Second (FPS)/watt for Yolo-V2, a leading object detection model & 22 Frames Per Second (FPS)/Watt for VGG-19, a leading classification model. Gluon is currently being sampled to for early customers to enable the development of their vision applications. It is engineered for OEMs and solution providers targeting vision market segments, such as surveillance, industrial, retail, Industrial IoT, and edge gateway manufacturers. To accelerate its market foray into highly demanding silicon markets, AlphaICs has established a channel partner relationship with CBC Co. Ltd, a Japanese enterprise offering video surveillance products for their customers. CBC has been working with AlphaICs for close to two years and we are excited to be its marketing partner in Japan. Gluon was showcased at Japan AI Expo in October 2021 and generated great interest from Japanese customers for vision applications based on its superior performance. AlphaICs co-processor strategy is well received, and we are very excited to take this technology to our customers," Kazuhiko Kondo, Executive Officer, CBC Co., Ltd. AlphaICs CEO Pradeep Vajram said "We are pleased with our Gluon silicon results and are now demonstrating the innovative technology to our customers. Our team worked very hard to design this high-performance, industry resonating deep-learning co-processor. Gluon is future-ready and is well-positioned to address the AI vision applications for surveillance, retail, industrial, and smart city markets." Early last year the company raised $8 million to advance the development of Gluon based on the proprietary architecture RAPTM. AlphaICs' highly scalable and modular architecture uses a specialized Instruction Set Architecture that is specifically optimized for AI. About AlphaICs: AlphaICs is a leading AI technology company that develops edge inference and edge learning technologies to enable AI at the edge. AlphaICs has developed a next-generation AI architecture, called Real AI Processor (RAPTM). Architecture provides high performance, low power, and minimal latency, enabling best-in-class edge AI inference processors. RAPTM architecture also supports edge learning to reduce training data requirements, enables auto labeling and continuous learning at the edge. The company is led by a team of technology experts and successful serial entrepreneurs committed to putting forth the true potential of AI at the edge. The company has operations in Milpitas, US, and Bangalore, India. AlphaICs is currently a company in the Silicon Catalyst Incubator.

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LockerDome Rebrands as Decide, Introduces Machine Learning and Decision Platform Decision Marketplace℠ to Power Digital Ads

Decide | February 09, 2022

LockerDome has today announced its relaunch as Decide (, reflecting its growing ambition to develop machine learning technologies that automate decision making in the real world. As a part of this relaunch, Decide is introducing its home-grown, machine learning and decision platform, the Decision Marketplace℠, to help navigate the tectonic shifts – from the deprecation of third-party cookies to the growing ubiquity of unified, first-price auctions – currently impacting the digital advertising industry. This flagship technology enables the rapid development of machine learning models to render automated, intelligent decisions and optimize outcomes for brands and publishers across the open web without the use of third-party cookies or the crutch of intrusive identity-layer data. At Decide, we believe that the convergence of three macro trends – the embrace of measured media, the flattening of ad stacks, and the fragmentation of identity – is reshaping the future of advertising on the open web, Successfully navigating these waters is not just dependent on the rapid development and iteration of machine learning models but also on our ability to automate intelligent decisions in the real world. The Decision Marketplace enables us to do just that.” Gabe Lozano, co-founder and CEO of Decide. Up until late last year, ad selection and impresion pricing across Decide’s advertising network were handled by only a handful of AI models, which took months to develop. The Decision Marketplace now provides Decide’s analysts an entirely composable environment in which they can build, train, test, and deploy machine learning models in minutes. Those models then compete against one another to render the best decision given a particular ad and a unique impression. The Decision Marketplace is both an extension of Decide’s previous efforts in the machine learning space and also a bold response to a new era on the open web in which all demand sources embrace measured media as their standard approach; ad stacks flatten and publishers migrate towards unified, first-price auctions; and advertisers move away from third-party cookies and behavioral targeting. For now, the Decision Marketplace is being exclusively leveraged by in-house analysts to power Decide’s advertising platform, but the team expects that in the coming years the scope of its work will expand. The Decision Marketplace was not designed to accomplish a particular task for a particular industry. Instead, its total composability creates application potential for any instance in which large, underutilized data exists. About Decide Decide developed a two-sided marketplace designed for modern advertising on the open web. Its ad platform is powered by proprietary machine learning and decision making technology that enables analysts to rapidly build, train, test, and deploy intelligent models to optimize global yield across a distributed network of publishers. Decide offers better ad formats, better metrics, better budgeting, and better machine learning decisions to deliver quantifiable results for brands and publishers.

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Relativity Announces AI Visionaries List, Honoring Industry Luminaries for Leaning Into AI

Relativity | February 23, 2022

Relativity today announced its first annual list of AI Visionaries. From general counsel to data governance, privacy, compliance and diversity professionals, the list includes leaders who have taken seminal steps in advancing the use of AI particularly in business areas that have historically been slower to adopt new technologies. I think what we are witnessing now will be seen as a turning point in history — the emergence of a dynamic group of AI Visionaries who are blazing a trail for AI adoption, particularly in functions where managing risk is a top priority and the approach to technology adoption has been more conservative, Today, we acknowledge these unsung heroes for their foresight and leadership in advancing the use of AI and propelling their organizations forward." Mike Gamson, Chief Executive Officer at Relativity. Some of the honorees on the list include Ruby Zefo (Chief Privacy Officer at Uber), Peter Lefkowitz (Vice President and Chief Digital Risk Officer at Citrix), Dan Cooperman (Former General Counsel at Apple and Oracle), Heather Sussman (Head of the Cyber, Privacy & Data Innovation Group at Orrick, Herrington & Sutcliffe), among many others. The complete list of 2022 AI Visionaries is available at AI is probably the most efficient tool to help organizations turn massive amounts of 'senseless data' into more 'senseful data,' And if it's true that 'senseful data' is the new gold of the digital era, then the value of AI should not even be a question." 2022 AI Visionary honoree, Stefan John, Senior Vice President, BASF Corporation and General Counsel and Chief Compliance Officer of BASF North America. Unstructured or semi-structured data is growing exponentially within enterprises, and a majority of data (80% to 90%, according to multiple analyst estimates) is unstructured. Relativity empowers its users to manage large volumes of complex unstructured data. In May 2021, Relativity acquired Text IQ, a Top 100 AI company. Since then, the company is making significant investments in bringing the benefits of AI to its customers and accelerating the rate of AI adoption in the industries that it serves. As AI increasingly becomes a part of Relativity's focus, the company is equally committed to setting a precedent for the ethical use of AI especially at a time when there is growing concern around issues such as coded bias. For instance, Relativity is working with Ballard Spahr on building an Unconscious Bias Detector, which utilizes AI to surface instances of biases related to ethnicity, gender, sexual orientation, etc. in performance reviews. The opportunity to leverage AI to bring unconscious bias to the surface can have a significant impact on creating a more equitable, fair performance review process, Ballard Spahr knows that diversity doesn't just happen, it's the intentional outcome of commitment to equity and inclusion. I'm proud of the firm for exploring how AI can lead to proactive and purposeful action to uncover where hidden biases lie, and in turn ultimately fostering a better overall workplace." 2022 AI Visionary honoree, Virginia Essandoh, Chief Diversity Officer at Ballard Spahr. Essandoh will discuss her experience in using AI to detect biased performance reviews and foster a more meritocratic workplace in a fireside chat with Gamson during an AI Visionaries recognition dinner during Legalweek. About Relativity Relativity makes software to help users organize data, discover the truth and act on it. Its SaaS product RelativityOne manages large volumes of data and quickly identifies key issues during litigation and internal investigations. The AI-powered communication surveillance product, Relativity Trace proactively detects regulatory misconduct like insider trading, collusion and other non-compliant behavior. Relativity has more than 300,000 users in approximately 40 countries serving thousands of organizations globally primarily in legal, financial services and government sectors, including the U.S. Department of Justice and 198 of the Am Law 200. Relativity has been named one of Chicago's Top Workplaces by the Chicago Tribune for 10 consecutive years.

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Key Digital enhances free KD App, offering zero-programming AVoIP system control

Key Digital | December 30, 2021

The addition of source control capabilities makes the free KD App a fully-rounded system controller for most AV projects, reducing cost and simplifying configuration and operation Simple, easy-to-use and easy-to-understand end-user control is an ultimate goal of AV installations – a system’s capabilities simply are irrelevant if the client can’t figure out how to operate it. With many systems, complicated and expensive programing is necessary to deliver such an end-user experience, where specialist knowledge is required for even minor system updates. Now, with the addition of source control to the free iOS KD App from Key Digital®, the already sophisticated yet user-friendly app offers powerful, concise control of Key Digital App Ready devices at no cost, with no programming. Not only does KD App control Key Digital’s comprehensive line of AV over IP encoder/decoder, switcher, matrix, multi-view and video wall devices, but, with the IR and IP PJLink control capabilities of connected system devices, control can also be extended to many display brands and source devices. KD App has become so powerful, that 90% of the jobs out there can now be done with zero programming.” Key Digital vice president of sales DeWayne Rains. Key Digital, an award-winning developer and manufacturer of leading-edge digital video processing, video signal distribution and AV over IP solutions, pioneered drag and drop programming with the development of the modular programming method for Compass Control Pro, a control system that unites complete AV system control and signal management – peripherals, sources, displays, audio systems, lighting systems – in one iOS app for control of products from more than 100 Compass Alliance Partner brands. Having a control system teaches you so much about the end user’s experience, The knowledge gained from developing Compass Control has been applied to the benefit of our users in the creation of KD App.” Vice president of product education and experience Jonathon Ferry. KD App was introduced as a single-function application to give end users portable and self-contained control of select Key Digital devices. As capabilities have been added to the app, it has grown into a broadly featured control solution that includes end-user-defined presets, input/output switching, video preview, intuitive finger-drag video wall control, friendly device names, display control, CEC and local input selection – with source control now added to round out the feature set. Once KD App is downloaded from the Apple App Store and the iPhone or iPad linked into the shared network, the app auto-populates with all connected Key Digital devices. From a given device’s pre-built KD App GUI, inputs and outputs can be selected, video walls mapped, presets created or recalled and additional device specific features managed. User-defined presets allow system-wide configuration for customers’ recurring needs, from a watch party in a sports bar setting to a staff meeting in a board room. With Key Digital AV over IP products that incorporate IR receive/transmit, menu-driven selection of controllable displays and sources can be made from a growing and evolving list of popular monitors, cable boxes and sources such as Apple TV and ROKU devices (an IR emitter is even included in the box with KD encoder/decoders). In addition to the KD App, the Key Digital Management Software™ Pro (KDMS™ Pro) configuration and control PC software is also available for free download and demo at Integrators use KDMS Pro to name inputs and perform additional configuration tasks that are reflected to the KD App. As a no-programming-required control platform, KDMS also provides pre-built user GUI panels and offers extended control capabilities such as the recently added support of the PJLink projector control protocol. The functionality of the free KD App across a host of Key Digital devices can be explored using the app’s built-in demo mode (which also serves as an effective sales tool for integrators).

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That sounds harsh, but it’s a stark reality for modern business. There are plenty of organizations that have ignored the need to change, adapt or innovate. Many were household names and when they faded or failed, they became headline news for all the wrong reasons. The truth is that survival not only depends on the ability to change, but also to change faster than the competition and fast enough to keep up with and satisfy customers’ demands.