Sun. Jul 21st, 2024

What is conversational AI, anyway?

Conversational AI is the synthetic brainpower that makes machines capable of understanding, processing and responding to human language. Think of conversational AI as the ‘brain’ that powers a virtual agent or chatbot. It encompasses a variety of technologies that work together to enable efficient, automated communication via text and speech by understanding customer intent, deciphering language and context, and responding in a human-like manner. Why do you need conversational AI in 2023?

Why do you need conversational AI in 2023?

Conversational AI has become increasingly important in recent years due to its ability to improve any business, impacting:

Availability: Conversational AI can be used to provide 24/7 customer service through chatbots and virtual assistants, which can help businesses handle a large volume of customer inquiries and support requests.
Personalization: Conversational AI algorithms can help businesses personalize the customer experience by using natural language processing (NLP) to understand the intent behind customer queries and provide relevant recommendations.
Efficiency: Chatbots can automate routine and repetitive tasks, freeing up employees to focus on more complex and important work, increasing efficiency and productivity.
Accessibility: Conversational artificial intelligence can be used to create accessible interfaces for people with disabilities or those who are unable to use traditional interfaces due to illiteracy or limited technology skills.
Decision Making: It can also be used to collect and analyze data from customers and employees in real-time, providing insights that can inform decision-making and drive business success.

How does conversational AI work?

“In order to help someone, you must first understand what they need help with.” – ancient proverb (not)

What enables a chatbot to interpret and reciprocate human speech in an almost natural way? Seemingly straightforward, it’s about a user engaging with an AI assistant and receiving a fitting reply. Yet, it’s an intricate blend of various technological elements working undercover to facilitate this seamless interaction.

This shows how conversational AI works and what technologies working behind the scenes

The first step involves Natural Language Processing (NLP). It’s the job of NLP to correct spelling, identify synonyms, interpret grammar, recognize sentiment and break down a request into words and sentences that make it easier for the virtual agent to understand.

Once the request has been prepared using NLP, a number of Deep Learning and Machine Learning models take over. Collectively known as Natural Language Understanding (NLU), these allow conversational AI to identify the correct intent (or topic) of a request and extract other important information that can be used to trigger additional actions i.e. context, account preferences, entity extraction, etc.

Proprietary algorithms also play an important role in enhancing the overall NLU capabilities of a virtual agent. In the case of’s conversational AI platform, we have developed Automatic Semantic Understanding (ASU), an algorithm that works alongside Deep Learning models as a safety net to further reduce conversational AI’s chance of misunderstanding user intent.

Now that the request is properly understood, it’s time to formulate a response back to the customer. It is key that a virtual agent is able to communicate in a personalized manner which is where conversational AI outshines traditional chatbot solutions. By combining the information gathered using NLU (customer intent, contextual information, etc.) with a structured hierarchy of conversational flows, a virtual agent can respond appropriately – whether it’s answering a simple question or completing a complex transaction – in a conversational manner that is more akin to interacting with a human than a machine.

Over time as the virtual agent answers more questions, and as AI Trainers help to enhance its knowledge, conversational AI grows smarter – learning new variations to each intent and how to improve its responses.

The secret behind conversational AI are the AI trainers

AI Trainers: the secret behind customer service automation

Technology is a crucial part of what makes customer service automation work, but it’s only one piece of the puzzle. Helping customers and solving problems has long been the domain of customer service teams and it’s their expertise and experience that can be leveraged into ensuring that conversational AI achieves its potential.

By up-skilling members of their trusted customer service teams into AI Trainers, and not relying on external consultants or data scientists, companies are able to keep conversational AI on-brand. AI Trainers are a new breed of non-technical, self-service professionals. They are responsible for building, training and working alongside a virtual agent to automate large-scale interactions between brands and consumers, boosting self-service rates, decreasing the workload of their frontline colleagues and delighting customers in the process.

This symbiosis of machine efficiency and human expertise is the secret sauce behind what makes conversational AI such a powerful tool for automating customer interactions.

Air AI: This conversational AI for customer service can call customers like humans


Want to try conversational AI for customer service? This tool called Air AI may be the answer.

Its creators boast that it can perform full 5-40 minute long sales and customer service calls over the phone that sound like a human and can perform actions autonomously across 5,000 unique applications.

This means that businesses can now have 100,000 sales and customer service reps at the tap of a button. Air AI is currently on live calls, talking to real people every single day, profitably producing for real businesses.

Air is not limited to any one use case. It can be used to create AI SDRs, 24/7 CS agents, Closers, Account Executives, or even therapists. The possibilities are endless.

Currently in beta testing, the AI tool is expected to be released to the public in the coming months and has the potential to be a major player in the conversational AI space. 

The enthusiasm for Air’s capabilities has led to an overwhelming response from businesses, with over 50,000 companies already signed up for the beta testing phase and you can also join the waitlist here

In a statement, Air CEO Caleb Maddix said, “We are excited to introduce Air to the world. We believe that Air has the potential to change the way businesses interact with their customers. Air is available 24/7, accurate, and can handle multiple calls at once. This means that businesses can now provide their customers with support whenever they need it, without having to hire and train human agents.”

Speaking of conversational AI for customer service, Dukaan, a popular Indian e-commerce platform, has laid off 100 employees, or about 5% of its workforce. The layoffs come as the company faces increasing competition from rivals like Amazon and Flipkart.

As noted by CNN, the company is replacing its existing customer service employees with a new AI-powered chatbot that is designed to be more efficient and effective.

What are your thoughts about conversational AI for customer service? Could this be a threat that cost people their jobs? Let us know in the comments!

Reasons to adapt and upgrade your support workflow:

Better conversations start with a better AI chatbot

It’s time to stop doing the same thing and expecting different results. Hiring an army of agents just won’t cut it, but reaching your consumers is simply a must. Meet your consumers in the most popular messaging channels with an AI chatbot. But not just any bot — an AI-powered LivePerson bot.

Visit the 2 leading the field in conversational AI