Facebooks New Chatbots Are Learning To Negotiate

Dated: 06/27/2017

Views: 103

Chatbots on Facebook Marketplace may soon be able to "negotiate" with you over the price of items for sale. And if new research released by FB this week is any indication, you probably won't know you're talking to a bot and not a human being.

Chatbots in Facebook Messenger (which Marketplace uses to facilitate communication between buyers and sellers) are nothing new - Facebook has encouraged third-party developers to build bots.

As of last year, there were over 11,000 chatbots available in Messenger with companies such as It's Alive allowing developers to easily build their own. A website called Botlist tracks these smart assistants across multiple platforms, including messenger. But this latest negotiating chatbot is being built by Facebook itself, and it's light years ahead of other less intelligent bots. Through a process called "Supervised Learning", Facebook is training bots to imitate human actions by showing them negotiation dialogues between real people. 

The training asks the bots to divide up a number of objects that correlate with a different point value. The bots learned to negotiate with each other in an attempt to end up with the most points possible. The bots even went further than their "trainers" anticipated and figured out how to bluff (what Facebook calls "intelligent maneuvers"), pretending to care about an outcome they didn't want, thereby gaining an upper hand down the line.

"There were cases where agents initially feigned interest in a valueless item, only to compromise later, by conceding it - an effective negotiating tactic that people use regularly", a Facebook blog post reported. "This behavior was not programmed by researchers, but was discovered by the bot as a method for trying to achieve its goals." Chatbots that can negotiate, may also find use in non-commerce activities, such as determining the best meeting time between co-workers.

Although we haven't reached the level of Matrix-style AI yet, Facebook reported that people didn't realize they were talking with a bot and not another person - showing that the bots learned to hold fluent conversations in english, within this domain.

In the battle for classified app supremacy, the deep pockets and reach of Facebook's AI research may give Marketplace a further leg up over competitors like OfferUp and Letgo. (And we won't even mention circa 1996 tech leader Craigslist). EBay's ShopBot, which helps people determine the value of items in their home to sell and easier to find items to buy. It's likely EBay is working on a similar negotiating bot. And smart assistants of all kinds are fast becoming required functionality at many of the tech titans - Apple, Google and Amazon all have them.

We shouldn't get too excited yet, "the bots weren't consistently better at negotiating than humans. And the researchers were only able to train them in this one specific scenario.

Credits: Inman Staff Writer,
M. Jory

Blog author image

Michael Jory

I grew up on the Monterey Peninsula, about 5 hours drive from Reno. I moved to San Diego in 1990 to begin my career in the golf business. While in San Diego, I worked at Torrey Pines, Balboa Park and ....

Latest Blog Posts

How the exterior color can affect the house price of your Home

Great article - Consider Paint before Listing your Home!There are a lot of costs to consider when turning a run-down house into a beautiful new home again. What if we tell you, that something

Read More

Use a Realtor when Looking at New Homes

New Home BuildersIf you haven’t noticed, the homebuilders are busy building a lot of new homes around our area.  Many home buyers are tired of being outbid time and again on

Read More

Mortgage Recasting

New What is mortgage recasting?Recently, one of my clients took advantage of a lender program called mortgage recasting. You may ask, "What is mortgage recasting?" Well, it is a program

Read More

Top 5 Contractor Scams (and How to Avoid Them)

What contractors say when they’re about to cheat you.“Well, he seemed legit” is what many homeowners end up saying after realizing they’re out the $1,500 they handed over

Read More