What is Conversational AI and What It Means For Online Stores

Wisdom April 22, 2020 0 Comments

Overview of Conversational AI

Conversational AI is the set of technologies behind automated messaging and speech-enabled applications that offer human-like interactions between computers and humans in natural ways, and is used in together with bots or intelligent virtual agents . It helps businesses deliver personalized engagements and support at scale.

Conversational AI can communicate like a human by recognizing speech and text, understanding intent, deciphering different languages, and responding in a way that mimics human conversation. In a nut shell Conversational AI is any machine that a person can talk to.

You might be asking yourself does this replace human beings? No, In reality, Conversational AI gives us help and expertise in a variety of places that we simply don’t have enough humans for, where humans will find the task boring, repetitive and discouraging, or where humans are too expensive to employ. In addition to that, when Conversational AI automates some of the more repetitive activities humans have to do, it helps them focus on equally important task.

Conversational AI enables enterprises to build transformational chat and voice-based solutions for diverse functions and industries. These solutions can handle the majority of existing tasks, workflows, and service interactions with ease.

How Conversational AI Applications Works

First, the application receives the information input from the human, which can be either written text or spoken phrases. If the input is spoken, ASR, also known as voice recognition, is the technology that makes sense of the spoken words and translates them into a machine readable format, text.

Second, the application must decipher what the text means. It uses Natural Language Understanding (NLU), which is one part of Natural Language Processing (NLP), to understand the intent behind the text.

Next, the application forms the response based on its understanding of the text’s intent using Dialog Management. Dialog management orchestrates the responses, and converts then into human understandable format using Natural Language Generation (NLG), which is the other part of NLP.

The application then either delivers the response in text, or uses speech synthesis, the artificial production of human speech, or text to speech  to deliver the response over a voice modality.

Last, but not least, is the component responsible for learning and improving the application over time. This is called machine or reinforced learning, where the application accepts corrections and learns from the experience to deliver a better response in future interactions.

What it means for businesses

The effect of Conversational AI differs across industries, but in a world where mass marketing is slowly giving way to one-to-one brand building, conversational AI will play a key role in generating these one-to-one experiences and leveraging the information they provide, giving brands an edge no matter their core offering whether it’s in marketing, sales or support – and this engagement makes consumers feel closer to a brand, allows the brand to get more insights about their customers, and improve sales outcomes. Yep, that’s right, it grows revenue, whether you involve a human in the conversation or not

It not only enables brands to offer instant answers about a variety of consideration questions consumers may have, but it ultimately enables brands to generate more minutes of engagement, consumer insights and sales as a result. Conversational AI, because of the quick answers it provides, can also positively benefit customer satisfaction.

Another advantage of conversational AI experiences is that they are more engaging than experiences through other channels. Because individual users can be identified through their messaging profiles, interactions can be highly tuned and personalized. Personalization reduces the friction that often occurs when customers have to explain who they are and what products they have each time that they interact with someone new. With a persistent messaging channel that carries context forward, the focus of the interaction (automated or human-driven) can be on addressing the task at hand rather than trying to identify the user or recall account information.

To get started with Conversational AI, consider Strellio. Strellio Limited is a provider of conversational AI solutions

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