Effective customer communication is crucial in the digital era. Conversational AI offers previously unimagined possibilities for customer service that go far beyond simple chatbots.
What is conversational AI?
Conversational AI (Conversational Artificial Intelligence) refers to technologies that mimic and automate human conversations by utilising deep learning algorithms, large language models (LLM), natural language processing (NLP) and machine learning (ML). Conversational AI is the umbrella term for a wide range of applications, such as chatbots. “Conversational AI” is often reduced to these chatbots but can also be used in other areas.
The areas of application of conversational AI
AI chatbots: The implementation of artificial intelligence as a chatbot is a very popular method. This is because conversational AI chatbots are well suited to customer service, answering frequently asked questions and dealing with general user concerns. This is usually implemented with a simple question-answer interface in which customers select suitable questions, and the AI answers in a standardised way.
So-called AI agents with generative AI offer a more in-depth implementation. You can generate answers in real-time based on the context of the conversation. This artificial intelligence can therefore respond to a wider range of customer enquiries and engage in more nuanced communication that goes beyond simple question-and-answer patterns.
- Speech recognition software
Speech recognition software can transcribe spoken language into text and is used, for example, to document lectures, record meetings, or automatically create subtitles for videos. As conversational AI can convert speech into text quickly and efficiently, it supports people with learning difficulties or hearing impairments, for example. - Speech output software
Conversational AI can recognise spoken language and convert written text into spoken language. Applications of this can be found, for example, in the creation of audiobooks, e-learning materials, and, as is well known, navigation devices. - Virtual Assistance
Virtual assistants, voicebots, and agents such as Siri, Alexa, and Google Assistant have been around for some time and also use conversational AI to enable voice-based interactions. They can be found on various devices such as smartphones and smart speakers and perform various tasks – from scheduling appointments to controlling the smart home. - Mailbots
The use of automated mailbots to process emails is an increasingly common method. These bots can take over recurring tasks such as answering enquiries, setting up automatic replies or just sorting emails. This can be done using predefined rules or AI pattern recognition. Using AI language models, today’s mailbots can create and send personalised and precise responses that consider the original email.
Tip: Find out more about using artificial intelligence with agents and voicebots in our article Conversational AI revolutionising customer service.
Speaks for itself: Conversational AI revolutionising customer service
Challenges in the implementation of conversational AI
- User friendliness
The implementation of conversational AI is often not user-centred enough. Developers of conversational AI solutions create them according to their own judgement and technical standards – but lose sight of the customer experience in the process. - Data protection and compliance
It goes without saying that AI chatbots in customer service must also comply with legal data protection requirements. This can be particularly challenging in regions with strict data protection laws, so make sure you are well-informed beforehand. - Lack of courage
The concern that artificial intelligence will completely replace human labour is understandable, but unlikely. While AI can solve simple problems in customer service, employees are still needed to handle the more complex cases. The possibilities of conversational AI should, therefore, be seen as a helpful addition to relieve employees.
7 advantages of conversational AI
- Better customer loyalty
Improves the customer experience through personalised and responsive interactions. - Greater cost efficiency
Reduces operating costs in the long term by fully or partially automating customer service. - More capacity
Answers FAQs or repetitive questions so that service staff have the capacity for complex or in-depth enquiries. - Important data acquisition
Conversational AI automatically collects valuable data by analysing customer conversations, which can be used to improve products and services. - Better accessibility
Provides accessible support that is available around the clock and can assist regardless of region and language. - Consistency in communication
Ensures consistently high quality and professionalism in customer communication. - Rapid scaling
Conversational AI can be easily expanded and scaled to meet growing requirements.
Summary
Despite some challenges, the potential of this technology should not be underestimated. Conversational AI is easy to scale and can significantly improve the customer experience. The fact that complaints, delivery information, booking enquiries, etc., can be answered directly strengthens customer loyalty. At the same time, capacity is freed up for cases that cannot be solved by AI, which leads to increased customer satisfaction and, ultimately to higher sales.
Our conversational AI solution for customer service:
novomind iAGENT Automation
Customers expect personalised service, quick responses and communication across all channels. With novomind iAGENT Automation, we offer AI-based intelligent chatbots, mailbots and voicebots to enable personalised communication and fast problem-solving.
