Conversational agents are exploding in popularity. However, much work remains in the area of social conversation as well as free-form conversation over a broad range of domains and topics. To advance the state of the art in conversational AI, Amazon launched the Alexa Prize, a 2.5-million-dollar university competition where sixteen selected university teams were challenged to build conversational agents, known as “socialbots”, to converse coherently and engagingly with humans on popular topics such as Sports, Politics, Entertainment, Fashion and Technology for 20 minutes. The Alexa Prize offers the academic community a unique opportunity to perform research with a live system used by millions of users. The competition provided university teams with real user conversational data at scale, along with the user-provided ratings and feedback augmented with annotations by the Alexa team. This enabled teams to effectively iterate and make improvements throughout the competition while being evaluated in real-time through live user interactions. To build their socialbots, university teams combined state-of-the-art techniques with novel strategies in the areas of Natural Language Understanding, Context Modeling, Dialog Management, Response Generation, and Knowledge Acquisition. To support the teams’ efforts, the Alexa Prize team made significant scientific and engineering investments to build and improve Conversational Speech Recognition, Topic Tracking, Dialog Evaluation, Voice User Experience, and tools for traffic management and scalability. This paper outlines the advances created by the university teams as well as the Alexa Prize team to achieve the common goal of solving the problem of Conversational AI.