Conversational AI

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Conversational AI

What is conversational AI?

Introducing the Tech behind the Talk: Conversational AI is an artificial intelligence technology that enables computer systems to communicate in a human-like manner, and educate itself from the human responses using machine learning (ML) and Natural Language Processing (NLP). 

Simply put, Conversational AI is what facilitates today’s technology to communicate with us humans, in a human-like manner, all while understanding and learning from what we say.

Examples of conversational AI:

1. Voice-Based Assistants:

Smart home devices, like Amazon Echo with Alexa, uses conversational AI to answer user queries, control smart home devices, provide weather updates, play music, and even order products online using voice commands.

2. Chatbot platforms and services

Chatbots can assist users by helping them perform actions such as booking tickets, making payments, provide them with product and service recommendations or other relevant information.

3. Virtual Reality (VR) and Augmented Reality (AR):

Conversational AI can be integrated into VR and AR environments to offer immersive experiences by engaging with virtual characters.

4. IoT Devices and Wearables:

Conversational AI can be used in Internet of Things (IoT) devices and wearables to provide voice-controlled interactions. For example, healthcare devices can provide users with information about their health data, remind them to take medications, and offer wellness tips.

5. Interactive Ads and Marketing Campaigns:

Conversational AI can be used in marketing to engage users with interactive ads that respond to user queries or provide personalized recommendations.

6. Gaming and Entertainment:

Conversational AI in Gaming can be used to create more realistic and interactive characters in video games, improving the overall experience.

How does Conversational AI work? 

Conversational AI gets its ability to learn from a set of resources, and consequent conversations thanks to Machine learning.

On the other hand, Natural Language Processing (NLP) ensures that the generated language is coherent, grammatically correct, and contextually relevant.

So what’s the difference between chatbots, conversational AI, and conventional AI

The key differentiator that makes Conversational AI stand out is that it is context-aware, giving way to more dynamic and engaging conversations.

Conventional vs Conversational AI and Chatbot vs Conversational AI

Conventional AIChatbotsConversational AI
What is it?Consists of AI systems designed to perform specific tasks using pre-defined rules, algorithms and logic.Chatbots are applications created to simulate human-like text-based conversations.Conversational AI is a subset of AI that focuses on creating natural, human-like conversations.
How does it work?simply involves execution of the pre-defined rules and may not involve conversational interactionsProgrammed to perform specific tasks and/or provide information to users.Employs advanced techniques such as machine learning (ML), natural language processing (NLP), machine and deep learning to understand and generate human language.
Where is it used?applied to specific tasks such as playing games, solving mathematical problems, and making decisions based on predefined logic.Commonly used for customer support where it can answer customer queries and other FAQs, or guide users through processes and provide relevant and requested information.Examples of Conversational AI can be found in voice-based assistants, chatbot platforms, interactive interfaces such as websites and kiosks, and even ad campaigns.
Is it adaptable?No, the capacity to gain understanding does not exist.May or may not be adaptable (based on the underlying technology used.Yes. Unlike certain chatbots that may follow predefined paths, conversational AI gives way to more dynamic communication.

Benefits of conversational AI

The many benefits of Conversational AI

The traditional, conventional AI relied solely on explicit instructions from humans. It lacked the ability to learn and adapt, hence limiting its capabilities. According to a report by Accenture, nearly 80% of CEOs have changed or intend to change how they manage client engagement using conversational AI technologies. Conversational ai means a smarter version of its predecessor that learns and adapts.

In 2022, When PwC asked CEOs which area of their company Conversational AI and other AI powered solutions positively impacted the most, the most frequent answer was (drum roll please): Improving employee and consumer experience.

And that exactly is the primary benefit of implementing conversational AI in businesses: Elevating Customer Experience (CX).

By simply switching to Conversational AI, You can accomplish just that and do so much more:

1. Increase efficiency through Accessibility and Availability

In a survey conducted by MarketSplash, the most voted answer to what is your expectation from chatbots was getting a reply anytime. Customers get access to dynamic, interactive help 24*7 meaning limitless communication during off hours, no holiday halts and 0 waiting time.

2. Offer Personalized experiences

The biggest advantage offered over others is personalised experiences. This could mean anything from personalised product recommendations to curating services in seconds.

3. Drive User Engagement

Technology that learns from the users itself makes the customer’s work easy if not non-existent.

4. Save time and resources

Reserve human support interaction for more complex issues, while resolving simpler queries quickly with ease.

5. Build scalable systems

Conversational AI systems can handle a large number of user interactions simultaneously, making them well-suited for applications with high demand, such as customer support or e-commerce.

Industries that utilize Conversational AI

The industries that are employing conversational AI in customer support, internal communication are listed below:

1. Banking, Financial Services and Insurance (BFSI):

Source: Capital one bank

  • Account Inquiries: Conversational AI provides users with account balances, transaction history, and account-related information.
  • Fund Transfers: Users can initiate fund transfers and payments using conversational AI.

Some Insurance specific use cases,

  • Policy Inquiries: Conversational AI answers queries related to insurance policies, coverage details, and terms.
  • Claims Processing: Users can initiate and track insurance claims, get guidance on claim procedures, and submit required information.
  • Quote Generation: Conversational AI assists users in obtaining insurance quotes based on their needs and requirements.

2. Retail and E-commerce:

  • Product Recommendations: Conversational AI offers personalized product recommendations based on user preferences and browsing history.
  • Size and Fit Assistance: Users can receive guidance on selecting the right size and fit for clothing and accessories.
  • Order and Returns Updates: Conversational AI provides real-time updates on order status, shipping, and assists with returns or exchanges.

3. Travel and Hospitality:

  • Customized Travel Itineraries: Conversational AI tailors travel plans based on user preferences, suggesting destinations, activities, and accommodations.
  • Booking Flights and Hotels: Users can seamlessly book flights, hotels, and accommodations by interacting with conversational AI.

4. Automotive and Transportation:

  • Service Appointment Scheduling: Users can use conversational AI to schedule vehicle repairs or service appointments and maintenance checks.
  • Vehicle Model Information: Conversational AI provides information about different vehicle models, features, and specifications.
  • Roadside Assistance: In case of emergencies or breakdowns, conversational AI can assist users in requesting roadside assistance.

5. Government and Public Services:

  • Citizen Information Inquiries: Conversational AI answers questions about government services, regulations, and provides general information.
  • Service Updates: Users can receive real-time updates on public services, events, and government announcements.
  • Regulatory Information: Conversational AI helps users navigate complex regulatory information and requirements.

6. Education and E-learning:

Source: duolingo blog

  • Virtual Tutoring: Conversational AI offers tutoring and learning support across various subjects and topics.
  • Language Learning: Users can practice and learn languages through interactive conversations with AI.
  • Course Information: Conversational AI assists users in finding relevant courses, providing details on curriculum and enrollment.

7. Healthcare and Medical Services:

  • Symptom Checking: Conversational AI assists users in assessing their symptoms and provides initial guidance on potential health issues.
  • Appointment Scheduling: Patients can use conversational AI to schedule doctor's appointments, lab tests, and medical consultations conveniently.
  • Medication Reminders: Conversational AI sends reminders for taking medications, ensuring patients adhere to their prescribed treatment plans.

8. Food and Beverage Services:

  • Order Processing: Users can place food orders and make reservations through conversational AI.
  • Menu Recommendations: Conversational AI suggests menu items based on user preferences and dietary restrictions.
  • Delivery Updates: Users receive real-time updates on food delivery status and estimated arrival times.

9. Media and Entertainment:

  • News Updates: Conversational AI delivers news articles, summaries, and updates on current events.
  • Movie/Show Recommendations: Users can receive personalized recommendations for movies, TV shows, and entertainment content.
  • Interactive Content: Conversational AI engages users in interactive experiences, quizzes, and content-related conversations.

Best practices for implementing conversational AI

1. Understand your users

The very first step is to fully comprehend who you are doing this for: the users of course! And their needs, goals and preferences. By successfully understanding and identifying their needs, goals, preferences and pain points, you would gain insights on exactly what tasks need to be automated, what inquiries need to be answered, and what all can be personified to address their concerns and pain points. 

2. Create a secure and seamless user experience: 

Craft conversations that feel natural, human-like, and are contextually relevant by combining pre-defined responses and dynamic learning to ensure accurate and personalized interactions. It is suggested to ensure a smooth transition from AI interactions to human agents wherever possible.

3. Train, Optimize and Repeat: 

Conversational AI benefits from continuous learning. Hence, it is important to regularly review user interactions, identify areas of improvement, and update the AI's knowledge base accordingly. 

Leverage user feedback to refine responses, expand the range of supported queries, and keep your chatbot up-to-date with the latest information.

Conversational AI tools

1. Engati:

Engati, winner of the 2021 CODiE Award, is one of the leading business when it comes to providing chatbot services. With features such as its new eSenseGPT technology, seamless third-party integrations and scalability across various channels, and strong presence in 186 countries, you can design a top-of-the-class conversational AI powered chatbot in minutes.

2. Rasa:

Rasa is an open-source framework that allows developers to build conversational AI applications using machine learning and natural language processing.

3. Amazon Lex:

Amazon Lex is a service by Amazon Web Services (AWS) that allows developers to build conversational interfaces for applications using voice and text.

4. Chatfuel:

Chatfuel is a platform that simplifies the creation of Facebook Messenger chatbots, offering no-code solutions for businesses.

5. MobileMonkey:

MobileMonkey is a chatbot builder that focuses on enhancing marketing efforts by creating chatbots for websites, SMS, and Facebook Messenger.

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