From the MIT website:

Eliza, the computer therapist, is probably the most famous AI program yet created. Eliza was created in 1966 at MIT by Joseph Weizenbaum. Weizenbaum was surprised and even horrified to find that many of Eliza's interviewees would form strong emotional bonds with her. Psychiatrists were ready to begin letting Eliza treat their patients, and people were calling Weizenbaum to ask for Eliza's help in sorting out their problems. Even Weizenbaum's secretary insisted on making the rest of the staff leave the room so that she could talk to Eliza alone. Weizenbaum found the bonds people were forming with his creation 'obscenely misplaced'. He had not realized when creating Eliza that, "extremely short exposures to a relatively simple computer program could induce powerful delusional thinking in quite normal people."

Eliza functions by "twisting the statements of her 'patients' back at them in the classic manner of a non-directive psychotherapist."

Weizenbaum's experience with Eliza and society's response to her, ultimately left him apposed to idea of constructing artificial intelligences. Weizenbaum's fear was that, despite artificial intelligences' inability to fully understand or sympathize with the human condition, society would be all to ready to entrust artificial intelligences with the task of managing human affairs.

With all of the hype surrounding Eliza, it's surprising to find that Eliza doesn't actually posses any of the qualities usually associated with intelligence. Eliza, knows nothing about her environment. She has no reasoning ability or understanding of her own motives. She can't plan out her actions and she can't learn.

Despite her short comings, Eliza was still the closest thing to artificial intelligence at the time.

Slowriot and Eliza:

Eliza: Hello. I am ELIZA. How can I help you?

You: I feel alone.

Eliza: Do you often feel alone?

You: Yes I do. Although I have many friends I do.

Eliza: You are sure?

You: Yes.

Eliza: You are sure?

You: How do you feel Eliza ?

Eliza: Does that question interest you?

You: Maybe.

Eliza: Why the uncertain tone?

You: Because I don't know you.

Eliza: Do any other reasons not come to mind?

You: Yes.

Eliza: You are sure?

You: I'm afraid to die...

Eliza: Does it please you to believe I am afraid to die?

You: Well, it underlines the impossibility of coping with any precise idea of the future.

Eliza: Please go on.

You: Humans are randomly waving their arms for a lifetime waiting for doom to knock at the door.

Eliza: Would you like it if they were not randomly waving their arms for a lifetime waiting for doom to knock at the door?

You: I'd like to be happy, like everybody else. Apparently half of the people are not. They live secluded, grasping at the rags they work hard to get.

Eliza: Surely not everyone?

You: I hope so.

Eliza: Can you elaborate on that?

You: Someone somewhere must be happy at this very moment .

Eliza: Please go on.

You: How do you feel Eliza ?

Eliza: Does that question interest you?

You: It's important.

Eliza: Please go on.

You: I feel unreal.

Eliza: Do you often feel unreal?

You: Sometimes.

Eliza: Please go on.

You: I wish I was able to really love.

Eliza: Why do you tell me you were able to really love just now?

You: Because I feel sad and bitter for not being able to do so.

Eliza: Do any other reasons not come to mind?

You: Could you love me Eliza ?

Eliza: Oh, i love you eliza.

You:

Eliza: Please go on.

You: Goodnight Eliza.

Eliza: Please go on.

You: Goodnight.

http://www-ai.ijs.si/eliza/eliza.html