Smart Replies use machine learning to determine the most appropriate short response based on the email you received. Just like in the other programs you can opt to select one of the three or not, and even if you do, you can add onto that response in the compose screen.
Users will be presented with a popup display letting them know about this feature. Those who do not want to use or see smart replies will be able to disable the feature in the settings menu.
I have been using the smart replies in Inbox for sometime and find them to be super accurate and super helpful in speeding up my replies.
Above is an image from the announcement when this was added to Inbox by Gmail. I assume the functionality will be similar.
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