Conversational AI: What is it & How to use Conversational AI?

Conversational AI: What is it & How to use Conversational AI?

Written by Alison Lurie, In Artificial Intelligence, Published On
May 15, 2024

Are you running an ecommerce store or a business owner looking to engage visitors round-the-clock? Of course, you can hire multiple human agents to do the work for you, but is it worth putting in your money for numerous human agents?

What if you can do it by spending your money once and reap benefits for the entirety of your life? Yes, you heard it right. It is possible to engage users 24/7 with the help of conversational AI solutions.

Numerous giant brands are integrating conversational AI assistants into their websites, social media platforms, etc., to improve user experience. According to Markets and Markets, the conversational AI market will reach $13.2 billion in 2024 and is expected to surge to $49.9 billion by 2030.

Have you never heard of it before? Don’t worry; this article explains what conversational AI is and how it works to benefit your organization.

What is conversational AI?

Conversational AI utilizes various cutting-edge AI technologies to enable computer systems to communicate and engage with humans. These technologies include machine learning, natural language processing, computer vision, etc.

Are you wondering how it interacts with the users? It can understand user context and sentiments and respond to user questions in the same way as humans.

The most straightforward application of conversational AI is chatbots or virtual assistants. You can partner with the best AI development services company in the USA to create custom conversational AI solutions that will help you better engage users and drive conversion to meet your objectives.

Also Read -   Explainable AI (XAI) in Data Analytics

How does conversational AI work?

Conversational AI

Conversational AI uses machine learning and natural language processing techniques. Don’t stress—we’ll make it easy for you.

Machine learning allows AI solutions to learn from the data and interactions with the users. It will enable the model to learn from its responses and improve its accuracy over time. On the other hand, NLP allows computers to understand and comprehend human language.

Here are a few steps on how it works to enhance user engagement and satisfaction:

  • The conversational AI model gets user input in the form of texts or voice through the user interface.
  • Conversational AI solutions use natural language processing to decipher the input, analyze and understand the message, and provide accurate responses.
  • Then, these models utilize natural language understanding to perceive the user context and intent by identifying short keywords.
  • After understanding what a user wants, conversational AI uses natural language generation to craft the most suitable response.

For example, you have placed an order using an e-commerce website. You want to inquire about the status of your order and send a message using the chat box on the website. The conversational AI chatbot breaks down your input to understand the intent by identifying keywords. After that, it provides the most appropriate response to your query based on its past experiences and training data.

4 Top Benefits of Conversational AI

The question that most of you might have by this point is: How will conversational AI benefit your business? Here are some benefits of conversational AI that will help you make up your mind:

Also Read -   Becoming an AI Developer: A Roadmap for Beginners

1. 24/7 Support to Customers

One of the significant benefits of conversational AI systems is their 24/7 availability. They are not like humans who have to follow a sleep schedule to give their all to the work. They don’t sleep and also provide customer support outside of working hours.

For example, you can integrate them into your social media handles or website to address customers’ concerns or provide them with recommendations based on their needs.

2. Drive Sales

Conversational AI increases sales and plays a crucial role in business profitability. Does it sound imaginative? No, it isn’t fiction; it’s reality. Let’s explain how conversational AI tools make it possible.

These tools are accessible 24/7, resolve customer queries, and address pain points better than humans. AI tools also provide recommendations to end users based on their past activity. Moreover, customers don’t have to wait for human agents to provide support. All these points increase users’ trust and loyalty to your brand, thus driving more sales.

3. Multilingual Support

Conversational AI breaks all the language barriers and supports users in their native language. These tools have language translation software that allows them to detect, understand, and generate responses in different languages. Now, you can have customers from across borders, all thanks to conversational AI tools.

4. Cost Effective

Conversational AI allows business owners to save massive amounts of money. Traditional methods of hiring a customer support team cost much more than investing in conversational AI assistants.

It is because you don’t have to pay hundreds of dollars to your employees every month and arrange a dedicated space for them to interact with users. AI tools engage users better than human agents and answer their queries more precisely.

Also Read -   The Future of Travel: How AI is Transforming Itineraries and Experiences


Conversational AI has changed the ways how businesses interact with their customers. They are not relying on traditional methods of resolving user queries and providing support. Organizations are adopting conversational AI solutions after realizing their potential to enhance user satisfaction. As this technology continues to evolve, we can expect even more personalized and efficient interactions between businesses and their customers.

Related articles
Join the discussion!