What is Conversational AI? A Complete Guide

by Shamsul
Conversational AI
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What is Conversational AI? A Complete Guide


With the passage of time, artificial intelligence has been evolving, and it seems unstoppable. Due to conversational AI unlimited advantages, more and more businesses are investing in artificial intelligence. Artificial intelligence gives huge support to company employees and is really helpful in improving customer experience. It also helps employees and reduces their effort so that they can focus on other tasks. With the help of artificial intelligence, you can easily resolve customer queries, saving time and money.

There is no doubt that conversational AI is now an important part of marketing and customer service companies. According to an estimate, conversational artificial intelligence is going to reach approximately 19 billion dollars by the end of 2026. But, some companies still think that conversational artificial intelligence can disrupt their work as their competitors will likely use this technology better.

So, it is crucial to implement conversational AI in your company. In this post, we will talk about the importance of conversational AI in modern-day business.


What is Conversational AI?

Have you heard about chatbots? The upgraded form of chatbot is called conversational AI. This technology is used to create conversational connections between computers and humans. It is also utilized to send automated posts. You can have a human-like conversation through conversational AI. It has the ability to communicate like a human and respond to the queries of users. The purpose of creating conversational AI is to satisfy customers and engage them. As a result, they feel special and more connected. Plus, it is faster than others and can respond quickly.


What is Chatbot?

Joseph Weizenbaum invented Chatbot in 1994. It works by understanding user phrases and keywords and then sending programmed or automated messages. He made the first Chatbot named ELIZA. The initial name of the Chabot was “Chatterbox.”


What is the Difference Between a Traditional Chatbot and Conversational AI?

Conversational AI is much better than a traditional chatbot. You can literally confuse someone with a conventional chatbot and conversational AI. But both are different from each other.

It understands human intent and responds to it accordingly using machine learning. In this way, it can offer quick and better results. On the other hand, some chatbots can use conversational artificial intelligence, but most of them can’t. They respond to pre-programmed and automated messages. Due to this reason, conversational AI is more popular and better than traditional chatbots. Plus, its market is growing day by day and it will reach 32+ billion dollars by 2030.


How Does Conversational AI work?

Conversational artificial intelligence utilizes a set of structures in order to respond to individual outputs based on their inputs. It uses machine learning and widens its range with the passage of time to enhance customer experience. When a customer talks to artificial intelligence, it analyzes its intent and context to respond accordingly.

Yes, it looks simple, but it isn’t very easy. So, investing in the right conversational AI structure is important. Here are some important factors that are essential for the natural language processing of artificial intelligence.


Machine Learning

It is an important part of artificial intelligence. It is built around data sets and algorithms. They learn from messages and queries of humans done in the past. As a result, it learns how to respond quickly and efficiently in the right way.

Natural Language Processing

NLP works with machine learning and is a popular way of language learning. It is one of the extensively used language learning methods.


Analyzing Received Input

In this section, AI understands the texts and messages people receive to understand the user intent.


Dialogue Management

After analyzing the input and completing the NLP process, artificial intelligence requires responding with the right message. In this section, artificial intelligence chooses which answer is good and fulfills users’ needs.


Reinforcement Learning

In this segment, artificial intelligence and customer response are stockpiled. Whether the input and output queries match, machine learning understands everything in this section.


What are the Uses of Conversational AI?

Conversational AI is used for so many purposes. It has plenty of great advantages in different industries. Below, we have compiled a list of industries in which it is used.


Customer Service

In customer service, the uses of conversational AI are countless. If you are contacting a website through its customer service, there is a 100 percent chance that you are talking to a chatbot. It is a widely used thing in customer service as FAQs are easy to program. You can use in managing schedules, cancellations, and bookings.


IT Desk Service

In order to give basic IT-related information, it can also help. There is no need to burden IT professionals because conversational AI can solve basic queries and problems. Plus, chatbots can also refer to you as a human operator in case of a complicated question.



When it comes to selling and advertising products and services, conversational AI can also be helpful. They can target an audience on the basis of automated offers and promotions. It has the ability to solve individual problems if you set up a chatbot correctly. On the other hand, they can also urge users to sign up in order to get nonstop services.


Data Collection

Most businesses don’t know that conversational AI can also be exploited to collect information or user data. It has the ability to store users’ data and information on the basis of their messages and activities. Conversational AI can also do the following things,

Record all customer calls and messages

Track keywords.

Collect data and respond to queries


Final Thoughts

It is clear from this guide that conversational AI has numerous advantages. It is successfully targeting many businesses. However, it can’t take over humans because there are some specific problems and queries that humans only solve. But, it can help humans and offload their burdens.


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