Whether you're interested in a conversational growth strategy or focused on conversational customer support. In this article we'll explore what makes machines capable of understanding, processing and responding to human language and break things down to set you up for success.

What is conversational AI?

Conversational AI is a kind of artificial intelligence that allows people to communicate with computer programs in the same way they would with other humans.

In contrast to a traditional chatbot's restricted abilities, a conversational AI chatbot can answer several requested queries, troubleshoot problems, and even start small talk. Conversational AI interactions are intended to be accessed and completed via a variety of channels, including audio, video, and text, unlike a static chatbot that is generally available on a company website but limited to textual conversations. The term "conversational AI" refers to artificial intelligence used in chatbots and voice assistants. Although the technology is still new, it is quickly improving and expanding.

Want to become a conversational AI expert? Read our guide here.


5 core components of conversational AI

We can break conversational AI down into five core components. The following five components work in tandem to enable a computer to understand and respond accordingly to human conversation:

1. Natural language processing

Natural language processing (NLP) is the ability of a computer to interpret human language and respond in a natural manner. This implies comprehending the meaning of phrases as well as the structure of sentences, as well as being able to deal with idiomatic expressions and jargon.

NLP wouldn't be possible without machine learning. To train computers to understand language, algorithms use sizable data sets that show relationships between words and how those words are used in various contexts.

2. Machine learning

Machine learning is a branch of computer science that lets computers acquire knowledge without being specifically programmed. Machine learning algorithms may automatically improve as they are immersed in more data.

Machine learning allows computers to read and learn from language, as well as discern patterns in data. It can also create models of different systems, like the human brain.

3. Text analysis

The goal of text analysis is to extract information from written data. The subject, verb, and object are all examples of sentence parts that must be identified. It also entails recognizing the many types of words in a sentence, such as nouns, verbs, and adjectives.

There are many reasons to analyze text, including understanding the meaning of a sentence and identifying the relationships between different words. You can also use text analysis to discover the topic of a piece of writing, as well as its overall sentiment (whether it is positive or negative).

4. Computer vision

Computer vision refers to a computer's ability to interpret and understand digital images. This involves being able to identify different objects in an image, as well as the location and orientation of those objects.

Computer vision algorithms analyze images to identify their contents as well as the relationships between different objects in the image. They can also interpret the emotions of people in photos and understand the context of a photo.

5. Speech recognition

Speech recognition is the capacity of a computer to comprehend human speech. This refers to identifying the many voices in a spoken phrase, as well as the sentence's grammar and syntax.

Essentially, speech recognition takes what you say and turns it into editable text. However, its utility doesn't stop there-- this technology can also be used to gauge the emotions of those speaking in a video or conversation, as well as understanding the general context.

Conversational AI: What it is and how it works


How conversational AI works

How does conversational AI work? In short, a customer interacts with a virtual agent and is given an appropriate response. But there are actually many different technologies powering this process to make it run smoothly.

Step 1: 

The first step in this process is Natural Language Processing or NLP. This involves correcting spelling, identifying synonyms, interpreting grammar, recognizing sentiment and breaking down a request into smaller words and sentences that are easier for the virtual agent to understand.

Step 2: 

After an NLP request is prepared, a multitude of Deep Learning and Machine Learning models take over. These are known as Natural Language Understanding (NLU), and enable conversational AI to identify the user's intent correctly (or topic) and extract other crucial information that could be used to trigger more actions, for example, context, account preferences, entity extraction, etc.

Step 3: 

Now that we understand the customer's request, it is time to generate a response. It is important that a virtual agent communicates in a personalized way, and conversational AI does this better than traditional chatbot solutions. With the help of a virtual agent, you may control the tone and tenor of your conversation by combining data gathered via NLU (customer intent, contextual information, etc.) with a hierarchical framework of conversational flows. The response of a virtual agent to simple queries as well as complex transactions may be more like engaging with a person than communicating with a machine.

Over time, as the virtual agent answers more questions and as AI Trainers assist to improve its knowledge, conversational AI becomes smarter - learning new variants to each intent and how to improve its responses.


Benefits of conversational AI for your business

Better customer experience

Customer service is the bread and butter of any business. Similarly, chatbots are the rock stars of AI when it comes to customer service. Getting an AI-based chatbot will do wonders for your customer service.

Namely, a chatbot can do anything from answering questions instantly to completing a purchase all by itself. Also, a chatbot can provide customers with the information they need and be there for them 24/7. So, you can rest assured that a chatbot is tending to your customers around the clock.

AI chatbots can understand almost anything people say. They use Natural Language Processing, which makes understanding what customers are saying a piece of cake. Also, these chatbots can answer customers with personalized messages. Thus, your customers will feel even more special and would not hesitate to contact you again.

What's more, AI-based chatbots can be excellent assistants to agents. Chatbots can start conversations with customers, and when need be, hand over the reins to the appropriate agent. All of these advantages of conversational AI chatbots will produce a sensational experience for your customers. Also, it will provide them with immediate responses coupled with expertise and skill.

Data collection

Customer data is critical for enterprises, and conversational AI sorts through millions of records to assist you discover what you're looking for fast and simply. It can be tough to sift through the clutter with conventional data mining techniques in order to identify potential consumers' interests or needs.

These AI solutions can help your representatives have more informed conversations with your customers by learning from other customer experiences. These technologies can mimic deep and sophisticated conversations that people have with one another, so consumers who contact your representatives will feel as if they're receiving individualized attention.

One of the most frequent applications for this technology is customer support chat. Having your tool available 24/7 means you can continuously gather data about customers.

Employee efficiency

The performance of human customer service agents improves when augmented by AI, with more cases per hour resolved and a more consistent flow of information. tasks like finding products and checking inventory are a piece of cake for chatbots. Also, the chatbot can verify delivery times and inform customers about them. What's more, if a customer needs the location of your store, a chatbot can provide that as well.

Having a chatbot will boost productivity in your company. You won't need to focus on simple and repetitive tasks anymore!

So, your employees will have more time to focus on more complicated tasks. Also, you won't need to employ additional people to answer simple questions. You can spend those resources on something more productive.

Better security 

The most important advantage of conversational AI is enhanced security. Customers on the internet must be protected. As a result, if you have an online store, customers will be safer with the aid of AI.

Artificial Intelligence software provides an extra layer of safety for your website by identifying potential threats and security issues. By taking care of these problems before they cause any damage, you will earn the trust of your customers who will feel more comfortable shopping on your site.

Cost advantages

Having a chatbot do all of your simple activities will help you save money. For the cost of one person, your chatbot can perform many functions. 

With AI, you can outsource most of the grunt work to machines so that your human employees can focus on more important tasks. This will save you time and money in the long run, as you won't need to train multiple people for menial jobs or pay them extra for working overtime. 

Transform your business with Conversational AI and Tengai

Tengai Unbiased can help you provide exceptional conversational AI-centric service to your customers. Turn customer conversations into valuable engagements with our self-learning chatbot. 

In comparison to a chatbot, Tengai’s conversational AI social behavior makes behavioral realism possible. This is crucial to enhancing the customer experience. The immersive experience Tengai creates during an interaction is one of the things that makes our software unique. Some have questioned if Tengai would be as effective as a chatbot but the fact is, being a conversational AI robot is crucial to the immersive customer experience.

To learn more about how Tengai works, book an obligation-free demo with our experts.

You may also like

Conversational AI vs. traditional chatbots: What’s the difference?
Conversational AI vs. traditional chatbots: What’s the difference?
16 January, 2023

When we speak about automated human-computer digital interactions, the line between chatbots and conversational AI can s...

What is Candidate Experience?
What is Candidate Experience?
4 April, 2024

Candidate Experience What is it? In the landscape of modern recruitment, candidate experience has emerged as a pivotal f...

What to look for in an AI recruiting tool
What to look for in an AI recruiting tool
21 November, 2022

Artificial intelligence (AI)-powered recruiting solutions are essential in today's tech-driven world. Recruiters can use...