The system depicted was created by combining three components: a chatbot, a text-to-speech synthesizer, and an avatar renderer.
Chatbots are machines designed to emulate the conversational abilities of humans, conversing with a human user and generally attempting to convince the user into thinking that the machine is human.
In such a scenario, if a sufficiently adept human on one end is fooled into thinking the machine is another human, the machine would be credited as passing the famous Turing Test for intelligence.