The first formal instantiation of a Turing Test for machine intelligence is a Loebner Prize and has been organized since 1991. In a typical setup, there are three areas: the computer area with typically 3-5 computers, each running a stand-alone version (i.e. not connected with the internet) of the participating chatbot, an area for the human judges, typically four persons, and another area for the ‘confederates’, typically 3-5 voluntary humans, dependent on the number of chatbot participants. The human judges, working on their own terminal separated from one another, engage in a conversation with a human or a computer through the terminal, not knowing whether they are connected to a computer or a human. Then, they simply start to interact. The organizing committee requires that conversations are restricted to a single topic. The task for the human judges is to recognize chatbot responses and distinguish them from conversations with humans. If the judges cannot reliably distinguish the chatbot from the human, the chatbot is said to have passed the test.
Fify claims to be an intelligent fashion discovery and transaction bot. “Fify will have memory and personality to behave just as humans. She will behave differently with different people. She will remember one’s taste and preferences. She will be context aware of what is happening in your world. Fify will first talk only about Fynd Fashion and eventually do all sorts of thing related to fashion — discuss trends, alert you about new arrivals, and even gossip about the latest fad of a movie star,” their blog claims.

The bot (which also offers users the opportunity to chat with your friendly neighborhood Spiderman) isn’t a true conversational agent, in the sense that the bot’s responses are currently a little limited; this isn’t a truly “freestyle” chatbot. For example, in the conversation above, the bot didn’t recognize the reply as a valid response – kind of a bummer if you’re hoping for an immersive experience.
“There is hope that consumers will be keen on experimenting with bots to make things happen for them. It used to be like that in the mobile app world 4+ years ago. When somebody told you back then… ‘I have built an app for X’… You most likely would give it a try. Now, nobody does this. It is probably too late to build an app company as an indie developer. But with bots… consumers’ attention spans are hopefully going to be wide open/receptive again!” — Niko Bonatsos, Managing Director at General Catalyst

Certainly for Facebook, this is much more about extracting marketing dollars than it is about breaking new ground in software development. Because by studying user’s interactions with these bots, Facebook will continue to build their understanding of how consumers are interacting with brands and gain additional insight into what products they like and content they consume. That can only mean more value to marketers and thus more dollars for Facebook.
Several studies accomplished by analytics agencies such as Juniper or Gartner [36] report significant reduction of cost of customer services, leading to billions of dollars of economy in the next 10 years. Gartner predicts an integration by 2020 of chatbots in at least 85% of all client's applications to customer service. Juniper's study announces an impressive amount of $8 billion retained annually by 2022 due to the use of chatbots.

In reality, such consumer expectations aren’t met, which thereby exposes a grey area for businesses to take advantage of. Statistically, 93% of businesses do not respond to consumer grievances within the first 5 minutes. This delayed response is directly responsible for a 400% decrease in lead generation. Over time this turns into a surmounting problem for both small and large organizations as they may be overwhelmed with customer grievances or may fail to maintain an online presence 24/7.
Used by marketers to script sequnces of messages, very similar to an Autoresponder sequence. Such sequences can be triggered by user opt-in or the use of keywords within user interactions. After a trigger occurs a sequnce of messages is delivered until the next anticipated user response. Each user response is used in the decision tree to help the chat bot navigate the response sequnces to deliver the correct response message.
The most widely used anti-bot technique is the use of CAPTCHA, which is a form of Turing test used to distinguish between a human user and a less-sophisticated AI-powered bot, by the use of graphically-encoded human-readable text. Examples of providers include Recaptcha, and commercial companies such as Minteye, Solve Media, and NuCaptcha. Captchas, however, are not foolproof in preventing bots as they can often be circumvented by computer character recognition, security holes, and even by outsourcing captcha solving to cheap laborers.
If a text-sending algorithm can pass itself off as a human instead of a chatbot, its message would be more credible. Therefore, human-seeming chatbots with well-crafted online identities could start scattering fake news that seem plausible, for instance making false claims during a presidential election. With enough chatbots, it might be even possible to achieve artificial social proof.[56][57]
^ "From Russia With Love" (PDF). Retrieved 2007-12-09. Psychologist and Scientific American: Mind contributing editor Robert Epstein reports how he was initially fooled by a chatterbot posing as an attractive girl in a personal ad he answered on a dating website. In the ad, the girl portrayed herself as being in Southern California and then soon revealed, in poor English, that she was actually in Russia. He became suspicious after a couple of months of email exchanges, sent her an email test of gibberish, and she still replied in general terms. The dating website is not named. Scientific American: Mind, October–November 2007, page 16–17, "From Russia With Love: How I got fooled (and somewhat humiliated) by a computer". Also available online.
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