Article·AI & Engineering·Oct 31, 2024
4 min read

What is Conversational AI?

4 min read
Tife Sanusi
By Tife Sanusi
PublishedOct 31, 2024
UpdatedNov 1, 2024

In 2022, OpenAI introduced the launch of their conversational AI model, ChatGPT and changed the landscape of AI forever. This launch propelled generative AI to the mainstream, impressing millions with the capabilities of conversational AI. A year later, it was announced that ChatGPT would now be able to talk, see and hear, allowing users to interact with the model in their preferred mode. This is all possible with the use of conversational AI.

Conversational AI is revolutionizing the way that we communicate and interact with technology. Conversational AI used in tools like chatbots, virtual assistants and even ChatGPT is helping users to experience an interactive exchange with these tools. Unlike previous technologies, conversational AI is able to recognize and analyze human language, giving it the capability to interpret and respond to questions, and carry human-like conversations. This makes the technology especially useful in fields like customer service and commerce where communication with customers is integral to business success. The ability of conversational AI to understand nuance and context also makes it a valuable resource for organizations who want to use the technology to improve their workflow and processes.

What is Conversational AI

Simply put, conversational AI are technologies like chatbots, virtual assistants or voice assistants that are able to communicate with humans. Conversational AI softwares are usually able to carry conversations, respond to queries and imitate human interactions. Using AI technologies like Natural Language Processing and Machine Learning among others, they are able to recognize all types of voice based or text based speech and respond to them in different languages. Conversational AI models are usually built using large datasets and are powered by deep learning allowing them to create a knowledge base that fuels their responses. Some softwares are even able to learn from previous interactions so that they can create a smarter experience over time. 

Today, conversational AI is mostly used in the form of chatbots. ChatGPT is probably the most popular chatbot around but there are currently a variety of chatbots for different purposes. Before the introduction of conversational AI, chatbots were simple softwares with limited capabilities and were restricted to preprogrammed inputs and actions only. Chatbots today are a drastic improvement from this with their capacity to do much more than simple commands. 

How conversational AI works

Conversational AI is powered by a combination of AI technologies, algorithms and machine learning working together to create a software that can mimic typical human interactions. These softwares are then trained on large amounts of data which are used to teach the system how to process and analyze human language. These are some of the components of conversational AI,

  • Natural Language Processing: Natural Language Processing is the first step towards creating conversations that can pass as human. NLP is used to analyze and interpret the user’s words, recognize the sentiment behind it and then restructure it to make it easier for the machine to understand.

  • Natural Language Understanding: NLU identifies the intent of the query and removes any relevant information that the query might contain.

  • Natural Language Generation: This process uses the relevant information gotten to produce natural language that would be understood by the user.

  • Machine Learning: Machine Learning uses algorithms and datasets to improve by learning from experience. This is especially useful because in this case, machine learning can be used to improve the capabilities of the conversational AI model using patterns and data from previous experiences.

  • Input Generation: Input generation is the query in either text or voice format that a user supplies to the conversational AI model.

  • Input Analysis: Input analysis involves the processing or analyzing of the query that has been supplied to find the intent behind the query. This is done with the use of Natural Language Understanding and automated speech recognition (ASR).

  • Dialogue Management: This is the process that involves the formulation of a response to the query that has been supplied.

  • Sentiment Analysis: Sentiment analysis is the process of analyzing the query to identify and interpret the emotional tone of the query. This is done with the use of NLP.

Using the components listed above, users are able to interact with conversational AI tools and receive responses to their queries. This usually follows this process,

  • Input reception: This is where users create their their input and feed it to the conversational AI model. The input can be in the form of a text or voice prompt.

  • Input synthesis and analysis: This involves the analyzing of the input by the model to determine the meaning of the query. This process uses sentiment analysis and NLU to evaluate the intent behind the query.

  • Output Generation: After understanding the input, this process allows the model to generate an output using NLG and other algorithms.

  • Output delivery: This involves the delivery of the output back to the user.

Types of conversational AI

There are various types of conversational AI that can be used in different scenarios. Here are some of them,

Chatbots

Chatbots are one of the most popular types of conversational AI models and for good reason. Chatbots are programs or models that are used to imitate and analyze human speech or conversation through text or voice interactions. Chatbots are usually trained on large amounts of data allowing them to generate content and responses based on the content they are trained on. Their ability to analyze queries and provide responses in seconds makes them useful in different industries from marketing to financial services.

Voice Assistants

Voice assistants are also an extremely popular type of conversational AI with over 4.2 billion voice assistants in use worldwide. The presence of voice assistants on smartphones from Apple’s Siri to Google’s Cortana has made voice assistants an important part of the lives of millions. Apart from personal use, voice assistants are invaluable in the workplace as a result of their ability to provide hands-free interactions. They can also be integrated into different services from search engines on shopping apps to AI-operated phone systems.

AI agents

AI agents are a more complex type of conversational AI. They are systems that are able to analyze available data to perform complex tasks without relying on human intervention or oversight. AI agents are similar to chatbots but they are also able to learn from their previous interactions and use these experiences to improve their efficiency. AI agents are also  usually given objectives not queries and create strategies to perform tasks that bring them closer to their objectives. This makes them perfect for objectives that requires more reliability and precision.

AI Copilot

AI copilots are just like copilots in a plane in that they help users to accomplish their tasks faster and more efficiently. AI copilots are able to understand requests, create a plan of action and execute the task with just a few instructions. This means that they are able to do everything from shopping for specific items to planning a holiday with the user. AI Copilots are different from other types of conversational AI systems because they are able to complete multiple tasks simultaneously while learning the user’s preferences and implementing them in its output. 

Benefits of conversational AI

Conversational AI has many benefits for both individuals and the workplace. For one, integrating conversational AI systems into a company’s workforce will exponentially increase productivity and efficiency. The addition of these systems will ensure that routine tasks are taken care of freeing up employees to work on more productive projects or tasks. This will in turn improve the efficiency of the employees and reduce operating costs for the company.

Conversational AI systems can also help in call centers and customer service departments. Their ability to provide 24/7 quality customer care and support can help in increasing customer satisfaction and experience. They are able to answer questions around various aspects of the business and their products and refer customers to human agents if necessary. Conversational AI systems can also help to provide personalized service to customers by tailoring interactions to each individual customer using data gotten from previous interactions. This could be by providing personalized recommendations or personalized services and support when needed. 

Customers or users with disabilities can also benefit from conversational AI systems. Voice assistants and other hands-free tools can be very useful for users with disabilities and can help companies improve the accessibility of their products and services. They can also help users who speak different languages or have limited technical knowledge. This makes conversational AI systems especially convenient in schools and other learning environments as they allow teachers to communicate and teach students better.

Conversational AI use cases

Conversational AI systems have various applications across numerous industries. These are some of them.

Healthcare

Conversational AI is a lifesaver in the notoriously understaffed healthcare field. With the use of chatbots and voice assistants, healthcare professionals can automate administrative tasks and paperwork freeing up their time for more fulfilling tasks. Conversational AI systems can also be useful in managing patient experience by providing 24/7 support as well as providing tailored tips and guidance. This will help ensure that both patients and healthcare professionals have a seamless and positive experience in the healthcare facility.

Customer Support 

Before the introduction of conversational AI into customer support, the sevice could only be done with a large amount of human labor and even then hectic and expensive. With conversational AI, all of this is a thing of the past. Chatbots are able to provide constant quality support to customers, answering questions and providing support when necessary. Using conversational AI systems also allows companies to be able to collect user data and feedback to create a more personalized experience for users.

Banking and Financial Services 

The financial services industry uses conversational AI to reduce operational costs, improve customer service and stay ahead of competitors. As in other industries, conversational AI systems helps banks and financial institutions to provide better and more personalized services to their customer. This can be done with the use of chatbots and virtual assistants to help customers when needed. Financial institutions are also using conversational AI to protect themselves against fraud and increase their security measures. 

Commerce

Conversational AI is changing the way that commerce works by allowing companies to use the technology to create exciting experiences for their customers. Companies are designing personalized shopping and buying experiences using voice assistants and chatbots. This is allowing them to connect with customers and build their brand image while cutting costs in other areas. 

Conclusion

Conversational AI is a powerful technology for companies and individuals looking to improve efficiency in their work processes. From voice assistants to AI agents, conversational AI provides various tools for different tasks, helping companies with customer service, accessibility, productivity and a host of other services. Although there are some limitations with conversational AI, this can be solved by following best practices like transparency with customers transparency with customers and partnering with trusted AI providers.

Unlock language AI at scale with an API call.

Get conversational intelligence with transcription and understanding on the world's best speech AI platform.