Conversational AI

Conversational AI is an artificial intelligence technology that comprehends human speech and corresponds with human interaction. Conversational AI is increasingly being used for numerous business purposes. 

While current types of conversational AI can handle simple commands, future iterations of this technology are projected to engage in more complex conversations and perform tasks for users. Learn more about conversational AI, how it works, and how this technology helps enterprises to communicate effectively and efficiently.

What Is Conversational AI?

Conversational AI allows users to interact with a machine through natural language conversations. The goal is for conversation to flow in a natural, human way so users can get the support they would normally receive from a human agent.

Many devices use a basic form of conversational AI, such as Siri or Alexa, where users give audio or voice commands for task assistance. Businesses can also use a different form of conversational AI — chatbots — for external communication with customers for customer service, sales, and marketing.

How Does Conversational AI Work?

Conversational AI recognizes and responds to language, allowing users to have two-way conversations via text or speech. This technology uses natural language processing (NLP) to understand inputs and then uses the information to make decisions. The natural language processing mechanism that conversational AI uses can be broken down into three main components:

  1. Text analysis: how words are processed for the computer to make sense of them
  2. Meaning extraction: finding context clues within spoken words or written text
  3. Dialogue management: understanding responses from other parties during a conversation

Key Features of Conversational AI

Conversational AI is an intelligent, contextual, and interactive way for humans to communicate with computers. One key component of conversational AI is the natural language interface that allows users to maintain their conversational tone. The conversational AI interface also includes these key features:

Contextual intelligence and personalization

The computer can understand the context of user queries and respond appropriately. Furthermore, the system learns from user questions, allowing it to personalize its responses over time.

Interactive adjustments to human conversation

Users can ask follow-up questions or change topics at any time during a conversation. The system responds like an actual human, answering questions naturally and offering appropriate follow-up comments.

Natural language and human speech pattern recognition

Conversational AI recognizes and adapts to human language that is filled with colloquialisms, idioms, and metaphors. Its dialogue recognition also allows user conversations to flow fluidly among multiple participants.

Benefits of Using Conversational AI

Conversational AI is most commonly used to reduce the number of calls or emails a company receives from customers. But it goes beyond reducing customer communications; the virtual agent approach also improves response time without sacrificing conversational quality. Both the speed and the quality associated with conversational AI can increase customer satisfaction.

Conversational AI also increases employee productivity levels because it eliminates repetitive tasks like data entry while streamlining which customer calls go to live agents. Instead of putting every customer on hold until a staff member is available, conversational AI tools intercede and answer their questions.

How Can Businesses Use Conversational AI? 

One way many companies use conversational AI is by incorporating chatbots to assist with customer service needs on websites and social channels. Chatbots give customers a self-service approach to finding answers to their questions.

Businesses can also use conversational AI for sales and marketing efficiency. For example, virtual assistants can respond to leads that come in through email or social media and guide prospective buyers through the buying process.

Interested in exploring conversational AI solutions for your business? Explore the Conversational AI Market further here.

Amanda Scheldt
Amanda Scheldt
Amanda is an Illinois-based Content Writer and Copywriter. While obtaining her degree in Cybersecurity, Amanda felt there was a lack of emphasis on education and awareness in the industry. Amanda has embraced this into her lifelong passion for writing by focusing her content with the goal to educate and inform. In addition to writing for Webopedia, Amanda enjoys writing for small businesses and tech startups.

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