What Is Conversational AI? Where Is It Used?

Conversational AI

What Is Conversational Artificial Intelligence?

Conversational AI, a short name for Conversational Artificial Intelligence, is a set of technologies that enable computers to simulate conversations. They are of great use in businesses to automate customer-facing touchpoints on social media platforms like Facebook and Twitter, on their official website, their app or even on voice assistants such as Google Home.

These systems offer a more straightforward and direct method for customers to sort problems out, address concerns, and reach goals. Both the terms Chatbot and Conversational AI have a more or less similar meaning. However, conversational AI is more inclusive of all the technology that falls under the bot category like voice bots and voice + text assistants. On the other hand, chatbots have a more limited method, that is the ‘text-only’ intention.

Conversational AI

What Are The Types Of Conversational AI?

Conversational AI are of two different types, chatbots, and virtual assistants. They decipher the meaning of what is said or typed as they are supported by artificial intelligence. Any software that responds or performs an action to a question or instruction from the human operating is called a chatbot.

There are three different types of chatbots:

  • Scripted Chatbots: These work as per a set of rules in a predetermined manner.
  • Intelligent Chatbots: They are built on artificial intelligence.
  • Application Chatbots: These are a combination of scripted and intelligent chatbots with the graphical user interface.

Intelligent chatbots or AI bots are moving ahead with excellent pace. They serve as the simplest and sharpest modes of communication for businesses with services, devices, suppliers, customers, and employees everywhere. The best feature of chatbots is that they can be taught to learn something new.

How Is Conversational AI Helpful For Organizations?

It Is Timely (24/7)

The biggest advantage of having a conversational AI solution is the immediate response rate. Answering queries within an hour translate to 7 times more likely of converting a lead. Customers are more inclined to talk about a negative experience than a positive one. Therefore, rectifying the negative issue will help the brand last for long.

Customers Prefer Messaging

The market affects customer behavior. Almost all the businesses- small or large, either has a chatbot or is considering one. Customers expect and prefer to see a live chat option on a website when they visit it as it helps them instantly with any queries. As more and more customers begin expecting a company to have a direct way to contact them, it makes sense to have a touch point on a messenger.

It Is Engaging And Conversational

Chatbots make for excellent engagement tools. Engagement drives consistency, which drives retention,  and that, in turn, aids growth.


SmartBots can handle easily and instantly a large volume of user queries without needing an increase in their team size. This is very much useful if you expect or suddenly see a huge increase in user queries. A spike like this will only lead to failure if the business is entirely dependent on a small team of human agents.

Conversational AI

Some of the most famous and real-time examples of Conversational AI are Alexa by Amazon, Google Home by Google, WeChat, Facebook Messenger, Allo among various others. AI is making great progress in the field of technology and might change the way businesses are done in the future. More and more businesses or organizations are embracing the power of conversational AI chatbots and other virtual assistants to be able to keep up with customer demands.

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