What Is Conversational AI – Uses and Insights

What Is Conversational AI - Uses and Insights
What Is Conversational AI – Uses and Insights

What is Conversational AI

When people call a customer service line or use an online support helper, they may notice that sometimes their responses may not seem like a person.

The technologies that develop these bots that can talk to people are called conversational AI. 

In this article, we will examine the technology behind conversational AI and what they are used for. 

Keep reading to find out more!

What is Conversational AI?

Conversational artificial intelligence (AI) uses technology to create virtual agents or robots that users can talk to.

They aren’t actually physical robots, but rather large volumes of data that people can query to return answers to questions to their users.

This process can mimic an actual human conversation using techniques that researchers use, like machine learning or natural language processing, that allow these AIs to phrase their answers in common human speech patterns.

Since the COVID-19 pandemic, conversational AI has been critical in improving daily life where people want to remain contactless.

Parts of Conversational AI

There are a few different components that go into developing a conversational AI.

Machine Learning

Machine learning is a field of artificial intelligence that uses computer algorithms, data sets, and feedback that helps an AI machine improve its abilities concerning programmed goals.

The more input an AI machine gets, the better it recognizes speech patterns and makes predictions about what it is supposed to say.

Natural Language Processing

Natural Language processing is a four-step process that uses machine learning to create an analysis of language based on statistical models.

These statistical models allow AI machines to use shortcuts to produce better linguistic skills without using a lot of processing power. 

Through the natural language process steps, an AI machine will be able to take unstructured data and turn it into a format that improves in quality as the input in the system increases.

Input Generation

The first step of natural language processing is called input generation. This step involves the users inputting queries into the AI machine through an app or website. 

Thanks to language transcribing technology, these queries can either be in voice or text.

Input Analysis

In this step, a conversational AI will use a natural language understanding (NLU) program that can get a top result for the intention of the phrase’s meaning.

To be analyzed, speech inputs must be translated into a text-based database through an automatic speech recognition program (ASR). 

Dialogue Management

After the intent is discovered, the conversation AI will formulate a response based on the previous data sets it has access to.

Reinforcement Learning

After each output, the conversational AI will refine its responses in the future by prioritizing ones that were accurate based on a multitude of metrics, including user feedback, rewards, and AI abstraction training sets.

Uses of Conversational AI

Conversational AI is most often used today in online chatbots or voice assistants that omnichannel services use in their customer support features.

These conversational AI’s are programmed to perform a very specialized task related to their customer service task and need to reconfigure if that task changes.

Conversational AI is also used in the healthcare industry to help make the healthcare costs of processing patients in administrative systems and claim processing quicker and more streamlined.

Another use of conversational AI can be seen in the text to speech application and its use in helping people with accessibility issues. These assistive technologies can predict what the person who may be hearing or sight impaired needs to see or hear to help them with their tasks.

Benefits of Conversational AI

There are a few advantages to using conversational AI technology compared with a traditional solution.

They Are Much More Cost-effective

Since conversational AI has an integrated machine learning process, you don’t have to worry about constantly retraining people to do the job that it performs.

Conversational AI machines save people time and money compared to the cost of paying an employee’s wages to do the same job.


Humans are capable of making errors. It is only natural. These errors can lead to inconsistent responses to potential users or customers, creating unnecessary complications.

Using a Conversational AI cuts down on the amount of miscommunication by offering a constituent model of how to respond to a query or input.


Conversational AI is cheaper to implement as people continue to scale up in production or capital. 

It can adapt to short-term spikes in business demand much better because the technology is more flexible than hiring and onboarding new employees.

Final Thoughts

Conversational AI will become an increasingly common part of our lives as technologies improve.

Understanding the benefits and mechanics behind emerging technology is crucial for users to make sure they can engage with it correctly and get the most out of its features as possible.