Joseph Weizenbaum’s ELIZA, developed in 1966, was a language
processing program intended to simulate human conversation via pattern
matching. The ELIZA program helped build the foundation for the modern day
chatbot, and as chatbots continue to evolve people have attempted to leverage
its functionality for a wide range of uses including messaging and marketing.
Within marketing the chatbot has become ubiquitous on retail
sites, in many use cases acting as a customer service representative by answering
product related questions for potential customers. Yet, the major issue with
the chatbots have been their limitations and inability to truly connect with
users (i.e. be perceived as an actual human). To combat the chatbot
limitations, the site The Infatuation
removed the Artificial Intelligence (AI) from the equation and replaced it with
the next best thing, a human. Since the Spring of 2015 the infatuation has been
utilizing a chat service called Text Rex. “With a dinosaur as a mascot, the
free texting recommendation service is more than just a chatbot. It’s run by
well-trained and well-meaning humans between the general hours of 8:30 a.m. to
11 p.m. The ‘Rexers’ receive requests from registered Text Rex users and use
The Infatuation’s categorized database to find the perfect restaurant for the
situation.” Per Chris Stang, CEO of The Infatuation,
it impossible to “give people value in a fun, trustworthy way” through use of
an AI based system.
The Infatuation’s strategy in this use case makes sense, as
the sophistication of AI based chat services lack the ability to truly connect
with customers. Yet, the strategy becomes tenuous once you need to scale the
solution. Currently the Text Rex service is only offered in New York City, with
plans to roll out in Los Angeles, and to adequately expand the service more
employees need to be hired. Once other markets are added to this plan, costs
for the Text Rex service will rise, and realizing economies of scale would likely
require consolidation of Text Rex employees into regional teams. With this type
of model, the service could lose its local uniqueness and possibly drive
customers away. As CRO Andrew Steinthal stated, “People just want that
narrative feeling…As the internet gets murkier and social networks get bigger,
you can lose your voice.”
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