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Back in the day when AOL 2.0 was all the rage and teenagers embraced instant messaging as a hip form of communication, no one could have foreseen the corporate embrace of IM technology.

But with almost half of all North American corporations using the application for inter-office information exchange, and an estimated 100 million users around the world, IM is well on its way to replacing e-mail as the Internet's killer app. So, it's not surprising that companies are looking for a way to capitalize on these staggering levels of usage.

Enter Silicon Alley start-up ActiveBuddy, which hopes to turn its ActiveBuddy technology into a multi-million dollar empire.

ActiveBuddy allows IM users to access the databases of a variety of corporate clients -- all with a simple IM command. Best of all, the company's technology or "bots" can be added to existing buddy lists, and lets users tap into partner databases for everything from stock quotes, news, weather, sports and movie listings.

Since late last year, ActiveBuddy has quietly unleashed a beta "buddy" that works like a "bot" within the three major IM systems -- America Online's AIM, Microsoft's MSN Messenger and Yahoo! Messenger.

Using a technology based on a "buddy script," the ActiveBuddy works just like the pop-up text messages, except that ActiveBuddy's "bot" (or what the company calls an "interactive agent") is actually a computer equipped with technology to respond to users' queries.

For instance, a user can simply type: "movies" and the zip code, and presto, the "buddy" returns listings for show times at nearby theatres. Or, simply type INTM and the up-to-the-minute stock quote for atNewYork's parent company Internet.com is returned.

If this ever develops critical mass (and it could with aggressive marketing), ActiveBuddy's technology has all the makings of a hit. Eventually, look out for the Yellow Pages to be available via IMs. Or, even an ESPN "buddy" dishing out the 9th inning score of a close Yankees game.

The possibilities for ActiveBuddy's interactive agents are growing, a factor not lost on the company's CEO Peter Levitan.

"Any company that has customers and wants to build relationships on a consistent basis would want to have an IM buddy. We can build buddies for a range of companies, from content providers to packaged goods companies. The range is endless," he said.

Levitan said ActiveBuddy's services are built on a natural language search called a "buddy script" that is programmed to tap into content databases. The script can be custom-built for corporate clients. Already, Reuters has signed on to share news headlines (and links to the Reuters site of course).

Capitol Records has also commissioned the creation of a "buddy" to market the launch of a new record from the Radiohead band. The Capitol Records buddy will be programmed to dish information on Radiohead's tour dates, song lists and bios.

With $11.6 million in backing from Reuters and Wit SoundView Ventures, Levitan said his 45-employee firm is negotiating additional strategic partnerships. Announcements are expected in coming months.

"We are strictly a business-to-business play. The model comprises of hosting, software licensing and production of the interactive buddies. Our goal really is to distribute software development kits to business clients so they can build their own buddies using our BuddyScript."

Ideally, the service would be perfect for companies managing inventory and, more importantly, for the all-important customer service departments. A company like Amazon.com can unleash a "buddy" that would allow shoppers to track orders and get information on products on an instantaneous basis.

It could also be a marketer's dream. For instance, Madison Square Garden could develop a buddy to send out information on events. A user might type a request for the Ringling Barnum circus and MSG and get tidbits on the show and, of course, start the ball rolling on ticket sales. Ask for Latrell Sprewell's career stats in a Knicks uniform and get a discount on the most popular of Knicks merchandise: his #8 jersey.

The travel industry, too, which exists on sharing information on flight and travel plans, would be perfect for the software. Imagine making your flight plans via IMs and then using the technology to initiate the sale of airline tickets and vacation packages?

So, how do IM providers feel about ActiveBuddy making money by latching on to their services? AOL, which has not taken too kindly to the notion of interoperability among competing systems, would certainly want a bite of the pie.

"Yes, we are essentially piggy-backing on their services and we are in conversations about developing partnerships," Levitan said, declining to provide details on how the partnerships would be structured.

"I can say we are in conversations with the IM leaders to work with them on mating our technologies. We are discussing business relationships and I can tell you that those discussions are very positive."

He said ActiveBuddy had already reached an agreement with one of the big three IM providers and hinted that an announcement would be forthcoming in less than a month.

"We've reached the point where we're about to launch services and start generating revenue. Our staff is set up and we're in a position to start to service customers at this point. Realistically, we are aiming for early summer with our own brand-name buddy."

Judging from informal, non-public tests conducted in recent weeks by atNewYork, there's no doubt ActiveBuddy has a winner on its hands. The challenge now is to get the brand-name buddies into the hands of business buddies.

* Ryan Naraine claims he is not a fan of instant messaging but can be reached on AIM, MSN and Yahoo! under the handle: ryanaraine.