What is Conversational AI and Can it Work for SMBs?

What is the key differentiator of conversational AI?

These NLP processes flow into a constant feedback loop with machine learning processes to continuously improve the AI algorithms. Conversational AI has principle components that allow it to process, understand, and generate response in a natural way. This solution is becoming more and more sophisticated which means that, in the future, AI will be able to fully take over customer service conversations. Implementing AI technology in call centers or customer support departments can be very beneficial.

Insights on the Global Conversational AI Market to grow by USD 1.14 Bn by 2026, Growth in natural language processing (NLP), machine learning (ML), and AI technologies to boost market growth – Technavio – Yahoo Finance

Insights on the Global Conversational AI Market to grow by USD 1.14 Bn by 2026, Growth in natural language processing (NLP), machine learning (ML), and AI technologies to boost market growth – Technavio.

Posted: Thu, 20 Oct 2022 08:30:00 GMT [source]

For more information on conversational AI, training BERT on GPUs, optimizing BERT for inference and other projects in natural language processing, check out the NVIDIA Technical Blog. Trained on a massive corpus of 3.3 billion words of English text, BERT performs exceptionally well — better than an average human in some cases — to understand language. Its strength is its capability conversational ai definition to train on unlabeled datasets and, with minimal modification, generalize to a wide range of applications. Speech and vision can be used together to create apps that make interactions with devices natural and more human-like. Riva makes it possible for every enterprise to use world-class conversational AI technology that previously was only conceivable for AI experts to attempt.

No more language barriers

Sophisticated NLU can also understand grammatical mistakes, slang, misspellings, short-form and industry-specific terms – just like a human would. They combine the best conversational technology (like conversational AI and rule-based automation) with the best graphic user interfaces for an optimal user experience. Conversational AI uses NLP to analyze language with the aid of machine learning. Language processing methodologies have evolved from linguistics to computational linguistics to statistical natural language processing.

A high-quality conversational AI should be able to offer responses that are indistinguishable from human responses. Unlike traditional chatbots, which are rules-based and scripted, conversational AI bots can use machine learning algorithms, deep learning and predictive analytics to extend the chatbot's knowledge base in real time. Over time, as the AI chatbot answers more questions, the digital user experience will continually improve. Chatbots, aka “conversational agents” or “virtual assistants”, are increasingly becoming key players in many company’s digital transformation strategies.

Conversational Artificial Intelligence (CAI)

But if someone writes “I just bought a new laptop, and it doesn’t work” they probably have the user intent of seeking customer support. For example, conversational AI understands if it’s dealing with customers who are excited about a product or angry customers who expect an apology. Setting the “AI or not AI” question aside, there are many other ways to categorize chatbots. It’s a good idea to focus on your chatbot’s purpose before deciding on the right path. Each type requires a unique approach when it comes to its design and development.

conversational ai definition

These interactions typically involve an “free text” input where the human user can ask questions and otherwise interact with the AI. The AI agent can engage, answer, direct, and complete a customer interaction without assistance from a human. Chatbots have difficulty managing non-linear conversations that must go back and forth on a topic with a user.

Companies often view bots as a cost-saving measure—and they certainly can be. But ideally, conversational AI will enhance the capabilities of your support staff, not replace them. Seven out of 10 consumers now strongly agree that AI is good for society while 66 percent of customers give AI a thumbs up for making their lives easier. And 69 of customers say they’re willing to interact with a bot on simple issues, a 23 percent increase from the previous year. This initial testing will give you a sense of your infrastructure needs, whether that’s back-end integrations or revisions to rule-based chatbot scripts.


Even one bad experience can turn someone off from ever doing business with a company again. Conversational AI can help companies scale the experiences that people expect by providing resolutions to everyday questions and issues in seconds. That way, human agents are only brought in when there is a complex, unique or sensitive request. If you’re unsure of other phrases that your customers may use, then you may want to partner with your analytics and support teams. If your chatbot analytics tools have been set up appropriately, analytics teams can mine web data and investigate other queries from site search data. Alternatively, they can also analyze transcript data from web chat conversations and call centers.

The individual steps are designed in a flow editor which includes easy-to-use design concepts that allow conversation designers to create complex, integrated conversations that are still easy to read for business users. The potential uses of deep learning are endless, and as such it has become a hot topic in recent years. In recent years, technology has allowed the creation of virtual, cloud-based Contact center. In this model, a business opts to pay a vendor to host the equipment instead of having a centralized office; agents connect to the equipment remotely. Virtual contact centers allow employees to work remotely, which can result in cost savings for the business and greater staffing flexibility. Cloud-native is a broadly used term describing applications optimized for cloud environments and the software development approach by which those applications are designed.

  • Conversational AI technology can bring a lot of benefits to both the company and customer support departments.
  • Conduct Sentiment Analysis – With advanced conversational AI, businesses can analyze customer sentiment and fine-tune processes.
  • It integrates with ecommerce, shipping and marketing tools, seamlessly connecting the back-end of your business with your customers — and helping you create the best customer experience possible.
  • This approach is also known as the “deterministic approach”, and it is based on the need to teach machines to understand languages, in the same way that humans learn how to read and write.
  • By doing so, businesses can help those with disabilities use their products better.
  • A study by Juniper Research in 2019 estimates retail sales resulting from chatbot-based interactions will reach $112 billion by 2023.

The AI architecture should be strong to handle the traffic load it sees on the chatbot with crashing or delay in response. With the onset of the 2020 pandemic, customers do not want to step out of their homes and interact with humans in person. Conversational AI enables them to resolve their queries and complete tasks from the comfort of their homes.

Conversational AI benefits for customers

In particular, it gathers the questions/answers and media that are offered as answered to the end-users. Additionally, deciding the conversational AI design is an important process. The interactions in the conversational AI platform must be aligned with the company’s business model, goals and customer personas.

However, a conversational AI can recognize a broad range of semantically similar statements, bring in customer data such as order or account information, and create a response on the fly. It can also determine when it's reached the end of its ability to help a customer and pass them along to a service agent. That access can help SMBs level the playing field between them and competitors, including much larger companies – both in staff and revenue. Conversational AI is one of the technologies that can support growth and customer experience, regardless of your organization's size. Tay, an AI chatbot that learns from previous interaction, caused major controversy due to it being targeted by internet trolls on Twitter.

conversational ai definition

The fintech sector also uses chatbots to make consumers’ inquiries and applications for financial services easier. In 2016, a small business lender in Montreal, Thinking Capital, uses a virtual assistant to provide customers with 24/7 assistance through Facebook Messenger. A small business hoping to get a loan from the company needs only answer key qualification questions asked by the bot in order to be deemed eligible to receive up to $300,000 in financing. Watson Assistant is a service that enables software developers to create conversational interfaces for applications across any device or channel.

  • In 2018, AudioCodes released Voice.AI Gateway, which utilizes the company’s speech recognition technology, call recording, and artificial intelligence.
  • Agent Handover is the process by which an agent- assist tool hands off a conversation from a bot to a human agent.
  • With symbolic AI, everything is visible, understandable, and explainable, leading to what is called a “transparent box” as opposed to the “black box” created by machine learning.

In the 2020s, there has been significant improvement in conversational AI capabilities. Compared to first generation conversational technology, new generation chatbots are more successful. Therefore, they can effectively improve experiences for both internal employees and external customers. The main advantage of voice assistants is that customers can use them hands-free, which makes them popular options for the physically disabled.

AHT is one of the most important performance indicators for a service center. While a low AHT is desirable, it is important for businesses to focus on the right variables to lower AHT. If a goal is set to minimize AHT in general, it often results in agent behavior that conversational ai definition causes decreases in customer satisfaction, such as rushing callers or providing mediocre solutions that result in repeat calls. Instead, more specific goals should be set around improving agent knowledge and performance, which organically results in decreased AHT.

conversational ai definition

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