Though existing around us for decades, conversational AI Technologies have become a sensation over the last few years. Google Trends shows how exponentially it has grown since 2017, and the AI market size is expected to reach \$32.62 by 2030. But what has made these conversational AI Technologies a must-have in our everyday lives?
Yes! You got it right; it’s super easy usability and extraordinary functionality. Let it be the ability to interact like humans or respond to automated emails in the most natural way; Conversational AI Technology knows how to hit the bell right.
Want to get a more detailed Conversational AI Technology Overview? Then without any further ado, jump to the next section as it unleashes all the exciting facts about conversational AI Technologies.
What is Conversational AI Technology?
Conversational AI technology is an umbrella term that incorporates all the technologies which users can talk and interact with (in any form). These include chatbots, voice assistants, engine assistants, virtual agents, etc.
The technology aims at combining large volumes of thoroughly researched data, machining learning, natural processing language NLP, and deep learning that work together to process human language, understand it, and respond to it in the most natural human-like language.
In short, it is no less than a treasure that facilitates real-time interactions with computers and human beings.
How do Conversational AI Technologies differ from Rule-Based Chatbots?
A common misconception is that conversational AI technology is just another name for chatbots.
Before discussing conversational AI technology overview and how it works, let’s unveil their prime differences.
Conversational AI uses NLP and machine learning to understand the conversation pattern of humans and interact with them naturally.
On the other hand, rube-based chatbots have defined answers to predefined questions and answers bluntly to the customers, thus making it difficult to handle complex conversations.
| Conversational AI Technology | Rule-Based Chatbots |
|---|---|
| Make AI conversations seem more like Humans | Make AI conversations seem more like Humans |
| Learns and Improves with time | Can’t improve the response itself |
| Can mostly answer all open-ended questions received by human | Only answer the questions included in its coded script |
| Multilingual | One language mostly |
How does Conversational AI work? The Key Components
Conversational AI Technology incorporates a constant feedback loop between machine learning and natural language processing to help improve AI conservation and stimulate a better response. The two critical components of conversational AI technology are:
1. Machine Learning (ML)
Machine learning is a sub-field of computer science and artificial intelligence that allows computers to learn data without being coded or programmed.
Instead, it incorporates sets of features, data, and AI algorithms that help computers get exposed to more information, learn their interacting patterns, and thus improve their performance with time and experience.
2. Natural Language Processing (NLP)
NLP is defined as the ability of computers to analyze human language, understand it, and then generate a response just like humans. It involves understanding the words, slang, idioms, and different languages and generating a response.
It uses ML and computational linguistics to understand the unstructured data, grasp the information, and then produce a response by following four steps:
- Input generation
- Analysis of data
- Formulation of Response
- Learning to refine response over time
It is further subdivided into two categories:
- Natural Language Understanding allows a machine to process human language and the intended meaning
- Natural Language Generation aims at producing human-like responses based on the input data.
Apart from it, text analysis and computer vision are also a part of conversational AI technology. Text Analysis helps understand the structure of a sentence, its meaning, and sentiments.
Similarly, computer vision aims at interpreting digital information like images and their context.
Four primary types of Conversational AI Software
There are four common types in which conversational AI technology mainly works. These are:
- Virtual Assistants
These are the most common form of conversational AI technology. It interacts with humans and quickly produces an answer that best matches the customer’s query. Siri, Bing AI, and Alexa all fall into this category.
- Conversational AI chatbot
Software that helps generate human-like responses to users via text and messages
- Voice and Mobile Assistants
Technologies that interpret voice commands into machine-understandable language, decode them, and create a response. These are known to ease the task by letting users record instead of typing.
- Interactive Voice Assistants
An automated technology that allows users to interact with a computer via voice.
Key features of Conversational AI Technology
From sentiment analysis to deployment, conversational AI offers a powerful punch of features that sets it apart from other technologies. Details of the few prominent features are below:
-
Integration
Conversational AI Technology offers seamless integration with multiple apps and tools like payment channels, CRM, marketing analytics, etc., that help optimize data exchange and ensure smooth customer service.
-
Sentiment Analysis
It aims to understand human psychology by interpreting the user’s one, categorizing it as positive, negative, or neutral sentiment, and then creating an appropriate response according to it.
-
Dashboard And Analytics
It helps to keep track of every user’s interest by analyzing their behavior. Also, it keeps a record of the percentage of how frequently and efficiently virtual agents resolve customer issues. Moreover, it holds a record of customer-agent conversations too.
-
Omnichannel Experience
Syncing the previous data allows communication and conversation continuity, allowing the customers and virtual agents to pick up and restart the conversation from where they left off. Simply mind-boggling!
What is Conversational Artificial Intelligence common use case?
Most believe conversational AI is used only for online customer service. However, that is different.
There is no second thought that AI chatbot customer service is the most common use of conversational AI; there exist various other benefits of conversational AI too. Some of these are:
- They are frequently used to answer FAQs;
- The software helps optimize HR processes like updating employee information, onboarding, etc;
- Adds the element of the Internet of Things to household devices like cell phones and watches—for example, Siri, Alexa, and Google Home;
- Make Online work easier by searching autocomplete;
What does Conversational AI Technology have to offer you? The Prime Benefits
Research shows that 86% of US executives claim that conversational AI technology has become a mainstream technology that offers numerous perks and thus is entirely unavoidable. Want to know about these benefits? Then let’s delve into details and unleash some of them.
1. Better Efficiency
It offers better efficiency by providing the following:
- instant customer service
- handling high-volume requests
- providing relevant answers to time in less time
53% of the people in the US claim to be using AI chatbots for mere customer service in 2022.
2. Availability
It is available 24/7, thus helping handle support requests and user inquiries easily.
Moreover, this helps increase customer satisfaction too by offering personalized, human-like interactions.
3. Helps Making Decision
The best of all is that these conversational AI Technologies assist customers in modifying sales by buying products by offering recommendations based on their choice.
For example, you can tell the virtual agent that you are looking for a pair of white sneakers, and it will provide you with the best options in the category, along with price and other details.
4. Cost Efficient
Similarly, it is very cost-efficient for business as it cuts off the need for staffing a customer assistance staff that works for only a few hours and is comparatively slow.
On the other hand, it works 24/7 without being slowed or inconsistent in responses.
5. Multilingual
Yes, you read it right! Conversational AI Technology puts break on language barriers.
It incorporates language translation software that helps detect and understand various languages and generate a response respectively. In this case, it targets a wide range of customers.
How can Conversational AI help your business?- The Global Trend
Conversational AI Technologies have become an integral part of businesses that help them skyrocket within a few months. Statistics show that the share of digital marketing reached 29% to 84% by incorporating AI in their services.
These Technologies help:
- Build developed interfaces that allow customers to interact in different ways;
- Personalize customer experience;
- Increase revenue and boost efficiency;
Moreover, a survey done in 2018 showed that consumers preferred doing business with agencies and companies that offer personalized customer service.
So, if you are not using conversational AI technology in your business, you are already lacking behind.
Final Verdict
All in all, Conversational AI Technology is nothing less than a powerful game changer for business that knows how to use personalization, experience, automation, and support service to turn the tables around and help business excel at a much faster rate.
These technologies are still going strong. They are the future to count on. And with this, the conversational AI technology overview comes to an end. It’s time to get the best conversational AI for your business and let success knock at your door.
