Business Science & Technology

What is conversational AI and how to use it to grow business?

Define Conversational AI:

Conversational AI refers to a variety of ways through which computers can converse with humans for the sake of information or issue resolution. Natural language processing (NLP) models can interpret a wider range of inputs. They also carry out complex conversations with humans, and this is a more advanced form of Artificial Intelligence technology.

However, intelligent automation is the key for businesses to meet and go beyond expectations across various channels. Conversational artificial intelligence can emulate close-to-human interactions that enhance customer experience (CX) to an impressive level. This also increases customer satisfaction, generates loyal customers, and raises customer lifetime value (LTV).

What are the components of Conversational AI?

There are a few Core Components of Conversational AI. These elements accelerate a computer’s ability to comprehend and respond to human speech. 

NLP (Natural Language Processing):

This is the ability of a computer to comprehend human language and respond. The output is consistent with human behavior and is referred to as natural language processing, or NLP. This process requires dealing with idiomatic expressions and language dialects along with the comprehension and the meaning of words or sentences.

So, machine learning can be used as an interface to teach computers to understand language. And this can make NLP possible. Also, there are large data sets used by NLP algorithms to process how words relate to one another and are used in various situations.

Machine learning:

This is a form of artificial intelligence. It allows computers to learn from data without any kind of explicit programming. In addition to the above, even if it is exposed to more data, machine learning algorithms can still handle it by automatically improving its performance. Using machine learning, computers are taught to understand language and recognize data patterns. That’s not all. Using it, we can create various models, such as the human brain.

Analyzing the Inputs:

The process of extracting information from text data is known as text analysis. Through this analysis, the system determines all the parts of the sentence (subject, verb, and object of a sentence), among other things. The text analysis process helps to identify words in a sentence, such as nouns, verbs, and adjectives.


Artificial intelligence can also interpret digital images, known as computer vision. As a part of this process, identifying the various objects in an image, along with their location and orientation, is crucial here. Hence, the computer vision component determines a digital image and the relationship between different objects.  

Speech Recognition:

If the computer can understand human speech, It is called speech recognition capability. This needs to recognize the grammar and syntax of a sentence in a speech. Probably, the speech recognition element is used to interpret the meaning of spoken words and transcribe spoken words into text. 

What are the benefits of Conversational AI?

Reduce the traffic of customer queries:

It happens in every other business; customers expect you to be available whenever in need. At the same time, you are endeavoring to make every client communication as consistent as possible. However, there are numerous instances where customers need help when trying to reach your contact center agents. This scenario prevents them from making a purchase decision. Such friction is caused when your support team is too busy to reach your phone lines.

In such a condition, you can deploy a chatbot on your website to reduce such friction. A chatbot is an extremely flexible tool that can patiently answer questions from customers at any time of day or night, regardless of time zones. Besides, it makes things much easier for customers to interact with your company easily. Hence, AI can improve business and customer rapport. 

Better Customer Engagement: 

It can be anticipated with no argument that conversational AI can also increase Customer engagement. That may be on your social media platforms or the website itself. As a business manager, you must create a flexible solution for customers to share their queries, requirements, or suggestions. 

It suggests that your customers are more involved with your brand, which could make them more loyal. Such interaction can also retain the customers by making them keep coming back. Additionally, an impressive form of conversational AI enables business staff and customers to meet when needed. They need not remember to get in touch with you later.

Customer Convenience:

A simple Conversational AI is easy to use, and even your customers can understand well. It must be simple, requiring customers to learn or remember specific words or expressions. Therefore, customers need not comprehend your industry jargon. An effective AI translates their inquiries from natural language into an app-friendly language with its interface. It can also identify relevant information and present it to them in a user-friendly format.

In other words, conversational AI creates comfort for customers by refining how they interact with computers. It can be comprehended to a level that is closer to what can be accomplished by two people. Thus providing contextually relevant, personalized assistance that customers frequently lack, conversational AI excels in online support channels.

Application of Conversational AI in Businesses:

Customer Support:

From the above discussion, we understand that conversational AI can improve customer service immediately through interaction abilities. With its help, agents can handle more complex issues while an AI chatbot handles simple questions. Hence, it can reduce the time customers spend waiting on hold. Even if you only shift ¼ th of your support interactions to an AI chatbot, this can accelerate your service team efficiency.

Consolidate business procedures:

While customer-facing chatbots are useful from the customer’s point of view, conversational AI can also assist your team. Especially in HR departments, they can be very helpful. Employees frequently inquire about many things they intend to know. However, Team Collaboration can be enhanced by refraining the HR staff from getting bogged down in answering all those inquiries. Introducing AI-based conversational solutions and allowing access to the information they require without having to wait for assistance.

Sales and Marketing:

This is to inform you that conversational AI can help your business close more sales and generate new leads. With its assistance, your sales team can convert a lead generated by your website into a sale. Because if the customer gets answers to his/her question on social media platforms, it is prospective. Therefore, when a customer is considering making a purchase, an AI chatbot on your website or social media platform can assist him with their questions.


Most large-scale organizations create their AI-based chatbots. However, this must also be considered that most small and medium businesses need access to such expertise. But there is no need to panic. You can use third-party services to build and even deploy the chatbot on your behalf is the preferable option. Businesses attempt all these in the customers’ interest because they can’t be expected once they switch the company or products. 

Vitel Global India promises the highest uptime, simple system administration, and quick addition of new members from anywhere in the world. Additionally, all of your staff can connect easily regardless of the devices they each use. Why not request a demo today?