Conversational AI – What is it and how does it work?

Conversational AI is a set of technologies that allow computers to decipher, analyze, and then mimic human language and conversation. This allows computers to interact with users in a more human way.

Conversational AI – What is it and how does it work?

What is Conversational AI and how does it work?

More human language reduces the turbulence that can arise due to variations in human language. But how does conversational AI work?

Through a combination of Machine Learning and Natural Language Processing (NLP), Conversational AI is able to process, understand, and generate responses in a more human manner.


Machine Learning

Machine Learning (ML) is a compilation of algorithms and data sets that continuously improve with every new experience. As the data set grows, the ML-powered AI platform becomes better at recognizing patterns and uses them to make predictions.

See how the investment community is beginning to find value in AI: AI transitions from fad to future of institutional investing.


Natural Language Processing

Natural Language Processing (NLP) enables AI to analyze language, context, and related data to generate natural responses. Conversations get better with each interaction. You can read more about NLP and why chatbots benefit from it here.


Common Uses

Chances are you have already run into and used conversational AI without realizing it was powering your interaction. Because conversational AI is so much more capable than traditional chatbots and more affordable than a 24-hour support team, its popularity is rapidly growing. Though the most popular use is with an AI chatbot, there are several other use cases to mention.


Online Support

Most chatbots fill in for support, answering easy questions, directing visitors to the right pages, and updating records in CRMs. If you use messaging applications, such as Slack, conversational AI agents act as virtual assistants to suggest related commands or linking to other data sources.


Internet Search

You’ve seen it before. Google’s search engine tries to auto-complete your query. It then suggests related search queries and frequently asked questions. Many tasks are being made simple by conversational AI, and internet searches are no exception.


Internet of Things (IoT) Devices

IoT devices are perhaps the most emergent and exciting of uses. Conversational AI allows you to send commands to IoT devices to change and manipulate your environment. Many IoT devices, such as Amazon’s Alexa, already use conversational AI to interact with end users.


Conversational AI vs. Traditional Scripted Chatbots

Traditional chatbots are scripted and limited in their ability to provide truly helpful conversation. Although they still hold value, they can become frustrating and cumbersome for human users. Over 79% of visitors would rather interact over chat (EConsultancy) than email because they prefer instant responses, but those conversations need to be satisfactory.

According to Zendesk, live chat has the highest consumer satisfaction rate at 92%. Now imagine if that interaction could be handled by a conversational AI chatbot. AI chatbots work around the clock and get smarter with every new conversation. Any enterprise – or any sized business for that matter – would have the potential to scale faster. With 24/7 streamlined customer service that learns their customers’ needs over time and improves conversations.

While traditional scripted chatbots almost make the cut, they will always require human maintenance and monitoring. Someone has to write the scripts and dialogues that power traditional chatbots. Moreover, they are limited to triggering a response based on the user’s input. If the user inputs something that the scripted bot does not have a canned response for, they’re left without answers. This is one of the most common scenarios that human users experience. It can leave a damaging impression of that organization.

Conversational AI adapts itself and learns to respond to questions that may not necessarily fit within their scripted parameters. Users aren’t always going to ask questions in the same way as one another. You need technology that is going to notice those differences and respond correctly in all instances.


In-App Chat and Conversational AI

Conversational AI is a growing technology that is vital to the future of any business. Especially as we head into a more digital era. Your customers are all online now! Unless you have the workforce to keep your business available 24/7, you need a solution that will keep you connected.

In-App Chat is an emerging pioneer, empowering your chat to achieve more, learn over time, and push the boundaries of conversational AI. In-App Chat fits seamlessly into your ecosystem of platforms and tools, making a smoother experience from start to finish. Thanks to our SDKs and APIs, you can code less and do more! Contact us today to get started with conversational AI.


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