Notes: Avatar Systems often come bundled with an AI Engine; however, I prefer unbundled, modularized, plug and play.

Speech (Voice-Out / Voice-In): Generally an Avatar System will include text-to-speech (TTS) (aka speech synthesis) with lip-sync.  Speech-to-text (STT) (aka speech recognition) may currently be provided (1) on the desktop by Windows 7 speech tools (see Microsoft Speech API), (2) in the Chrome browser with Google Speech API, or (3) on the mobile platform with iPhone or Android speech tools.

Advanced applications: Face tracking (see Avatar Kinect), Facial recognition

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Chatbot App Videos : Best Apple Siri Videos | Best IBM Watson Videos | Evi App Videos | Iris App Videos | Jeannie App Videos | Multi Bot Scenarios | Skyvi App Videos | SecondLife Chatbot Videos | Speaktoit App Videos | Vlingo App Videos

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Desktop

Guile3D Denise (Avatar Builder SDK) {related:}

AlterEgos {related:}

SeeStorm (Skype) {related:}

Charamel (Mocito) {related:}

Web

SitePal (PhotoFace) (API) {related:}

LivingActor {related:}

Beema {related:}

Fix8 {related:}

Mobinex {related:}

BigStage {related:}

Digimi (Gizmoz Studio + DAZ 3D) {related:}

3dvia (Evolver) {related:}

Blabberize {related:}

Mobile

iPhone & Android apps

MotionPortrait {related:}

Emotion AI {related:}

The Market for Emotional Experience from Emotion AI on Vimeo.

Virtual Worlds

Second Life {related:}

SL-BOT {related:}

Avatar Kinect

Oddcast - 3D Worlds {related:}

Minimoys {related:}

Other

CrazyTalk - Facial and 2D Animation Software {related:}

Zabaware (3D Character Animation Engine for Chatbots) {related:}