Everything You Should Know about Conversational AI

Enterprises mostly struggle to provide a personalized experience to their customers. Moreover, they have to manage the high operational cost of managing teams to handle queries. How can they balance between personalized interactions and higher efficiency? Conversational AI is the answer. A technology powered by NLP, AI, and Machine learning that helps enterprises to provide human-like conversational ability. It can understand customers’ queries and provide them with output while the team puts their efforts into more strategic activities. To boost customers’ experiences with their brands and provide them with human-like interactions, enterprises heavily rely on conversational AI solutions.  

Are chatbot and conversational AI the same? 

Most people get confused between conversational AI and chatbots and use them interchangeably. However, they should not do it because there are some differences. Not all chatbots are part of conversational AI solutions. Some chatbots run on predefined chat flows without AI’s ability to learn and operate. Those bots are simple software programs run on predefined algorithms (Set questions and answers) through a chat interface on your website or app. On the other hand, conversational AI is a broader term based on context. It is developed to provide human-like conversations to the users. Conversational AI is ‘AI-based’ technology, while chatbot is a ‘rule-based’ program.   

Is there something new happening in Conversational AI 

Multimodal Interactions 

Now, conversational AI has moved from simple text-based chatbots to multimodal systems that are capable of integrating voice, visual, and text-based inputs. Making it more powerful and enables users to interact through different channels. It boosts user engagement by eliminating the boundary of interaction with only text, expanding it to more formats of content. 

Keep it under ethical usage policy (Responsible AI) 

All enterprises are talking about Responsible AI to ensure that their usage of AI technology falls under the AI guardrails. Enterprises, while leveraging conversational AI,  should comply with ethical AI standards.  

Ai Agents  

One of the groundbreaking updates is AI agents. These autonomous agents will work with you, not only work for you. They will execute tasks independently without any human intervention. It has given the wings to conversational AI, expanding the horizon of self-learning to self-executing. They are loaded with advanced AI capabilities, omnichannel integration, and more.  

What business will get from Conversational AI? 

Conversational AI has a list of advantages to offer for enterprises. We have highlighted a few of them here: 

24/7 Availability 

Having your conversational AI agent will give you the advantage of keeping them available 24×7 for your customers. It gives uninterrupted support to your customers, leading to higher satisfaction and loyalty rates.  

Lower Costs and Higher Productivity 

Once your routine tasks and interaction processes are automated with conversational AI, you can give your team members more complex and high-priority tasks to complete. It leads to higher productivity and lower operational costs. 

Faster Responses 

Conversational AI tools are developed to resolve customer queries faster speed. Faster resolution leads to better customer satisfaction and reduces churn rates. 

Enhanced Accuracy and less errors 

Advanced NLP ensures conversational AI tools understand users’ intent accurately and respond accordingly, minimizing misunderstandings and errors. 

Scalability 

Enterprises can scale their conversational AI systems as their business scales up to match their higher interaction rates, ensuring the seamless delivery of services to their users. 

Here are some use cases of Conversational AI  

Retail and E-Commerce 

Chatbots loaded with conversational AI features help users select products, manage their complaints/queries, and recommend products based on their shopping preferences. Nowadays, e-commerce platforms provide voice-based shopping experiences to make shopping more convenient. 

Banking and Finance 

There are various conversational AI-powered virtual assistants that help customers check their bank account funds, receive financial updates, and transfer funds, such as Eva by HDFC Bank. 

Healthcare 

Conversational-powered chatbots help healthcare professionals and patients schedule appointments, make medication reminders, and provide preliminary counseling. 

HR 

Enterprises can streamline their human resources operations with conversational AI apps, enabling better employee onboarding, solving queries faster, and improving training programs. Moreover, it can manage support tickets also based on relevance. 

Conclusion 

Conversational AI is continuously evolving with the latest technology advancements, such as AI agents and advanced LLM capabilities. Enterprises having conversational AI tools are getting a competitive advantage in the market and exploring more business opportunities. Whether it is about streamlining business operations, providing better customer experiences, or boosting data-driven decision-making processes, Conversational AI systems will help you. Connect with experts and certified players like the Saxon AI team to help you with your conversational AI journey customized to your business requirements.