Conversational AI technology like chatbots, AI-driven massaging platforms, and virtual assistants are enabling natural, human-like conversations between machines and people. These tools and platforms are rapidly transforming the way businesses communicate with their customers and employees. This innovative technology is enabling businesses to create more personalized, engaging, and efficient communication experiences that align with their business goals.
A report by MarketsandMarkets, has predicted that the conversational AI market is expected to grow from $10.7 billion in 2023 to $29.8 billion by 2028 with a predicted CAGR of 22.6% during the forecast period.
According to the reports of McKinsey and Company, Generative Artificial Intelligence” has the potential to add up to $2.6 trillion to $4.4 trillion of value to the global economy annually.
A McKinsey report predicts that generative AI tools like ChatGPT and Bard – will potentially automate nearly all types of work between 2030 and 2060. According to another McKinsey report, AI is likely to automate about half of all work between 2035 and 2075, and the recent revolutionary power of generative AI tools has accelerated the automation journey.
In this blog, we will talk about the revolutionary impacts of conversational AI technology in organizations, the latest tools in conversational AI technology, and how businesses are using this technology to improve their communication and engagement strategies.
A brief introduction to Conversational AI?
Conversational AI refers to artificial intelligence (AI) systems and technologies designed to engage in natural language conversations with humans. These systems are capable of understanding, processing, and responding to spoken or written language, mimicking human-like interactions. Conversational AI includes chatbots, virtual assistants, and other AI-driven interfaces that facilitate communication between people and machines.
It is trained to interact with humans and computers via voice or text. Conversational AI technology is backed by NLP which assists machines in understanding human language and preparing responses according to their needs. In this age of AI, conversational AI plays an indispensable role in every organization, not only in internal operations, but also in serving the other objectives of an organization, such as customer satisfaction, customer retention, and accessibility.
Examples of conversational AI tools
- Bard:
A large language model from Google AI that can generate text according to the prompt given by humans, translate languages, write different kinds of creative content, and answer questions in an informative way.It communicates with humans and generates content according to their needs.
- ChatGPT:
ChatGPT, a product of OpenAI, is based on a large language model that is similar to Bard, but with a focus on generating realistic and engaging chat conversations.
- Jasper:
A conversational AI platform that is designed to assist businesses in creating and managing chatbots, virtual assistants, and other conversational AI applications.
- Amazon Lex:
A conversational AI service from Amazon Web Services that helps businesses to build chatbots and virtual assistants.
Real-World Use Cases of Conversational AI
Businesses are using conversational AI technology in various domains of their businesses to harness their full potential. Let’s have some of the well-known examples of real-world applications of conversational AI technology.
Sephora:
Sephora uses conversational AI to power its Beauty Bot, which helps customers find the right products, book appointments, and get advice from beauty experts.
Domino’s:
Domino’s uses conversational AI to power its Domino’s AnyWare chatbot, which allows customers to order pizza using text or voice commands.
Walmart:
Walmart uses conversational AI to power its Walmart Voice Assistant, which allows customers to shop, check products in the inventory, and get information about products using natural language.
Salesforce:
Salesforce is using conversational AI to help its sales reps close deals more quickly and efficiently. For example, Salesforce’s Einstein AI platform can help sales reps to identify the right leads, personalize their sales pitches, and track their performance.
Amazon:
Amazon is using conversational AI to power its Alexa voice assistant, which allows customers to shop, play music, and get information using natural language. Alexa is also trained to provide high-quality speech recognition and language understanding capabilities.
How is Conversational AI Applied Across Different Sectors?
Customer Support and Service:
- Chatbots: Many organizations use chatbots on their websites or in messaging apps to provide quick responses to customer queries and to play the role of a 24/7 customer support agent. They work on predefined rules set by an organization.
- Virtual Assistants: virtual assistants are based on LLM models to understand natural language in a more effective and user-friendly way. Organizations are using virtual assistants to understand complex queries and provide a higher level of service.
E-commerce:
- Personalized Shopping: Conversational AI can make product recommendations and help customers find what they’re looking for.
- Order Tracking: Customers can use chatbots to check the status of their orders or get shipping information.
Healthcare:
- Appointment Scheduling: Patients can use conversational AI to schedule appointments and receive reminders.
- Health Information: AI-powered virtual assistants can provide information about symptoms, medications, and general health advice.
Finance:
- Financial Advice: Some organizations offer AI-driven financial advisors that can provide investment recommendations and financial planning.
- Account Management: Customers can use conversational AI to check account balances, make transfers, and handle basic banking tasks.
Human Resources:
- Recruitment: Organizations can use chatbots to screen job applicants and answer candidate questions.
- Employee Self-Service: Virtual assistants can help employees find HR policies, request time off, or access training materials.
Sales and Marketing:
- Lead Generation: Chatbots can engage with website visitors, qualify leads, and collect contact information.
- Customer Engagement: AI-powered messaging can be used for marketing campaigns and customer engagement.
Manufacturing and Supply Chain:
- Inventory Management: Organizations can use conversational AI to monitor and manage inventory levels, place orders, and track shipments.
- Production Monitoring: AI systems can provide real-time information about production processes and equipment status.
Benefits of Conversational AI
Cost saving
Conversational AI can reduce the cost by freeing up your employees as chatbots can handle a lot of routine tasks and customer queries. Moreover, most of the employee’s tasks are automated with conversational technology. Deloitte’s study found that automating federal employee tasks could save 96.7 million to 1.2 billion work hours per year and $3.3 to $41.1 billion in costs.
Improved customer satisfaction
With conversational AI, customers have better and more efficient responses toward services that eventually lead them to turn into loyal customers.
Improved accessibility
AI conversational tools ensure a quick response to customer query and actively addresses concern which makes them make quick decision to buy the product. Chatbots work 24/7 despite time differences that improve accessibility and customer satisfaction.
24/7 accessibility
Chatbots ensure 24/7 customer service availability, ensuring customers can get assistance whenever they need it. This will improve customer support services and customer loyalty.
Multilingual support
Conversational AI tools are trained to understand multiple languages and respond to queries in different languages that broaden the global reach of the business.
Improved interaction
Conversational AI improves interaction with customers as it immediately responds to their questions with personalized assistance. Moreover, it automates routine tasks saves time, and improves productivity.
Final Thought
In this ever-evolving world of AI, Conversational AI is directly or indirectly becoming an indispensable part of every organization. From managing the internal operations of an organization to serving the business objectives of an organization, Conversational AI is widely used in every sector of the organization.
In the dynamic landscape of modern organizations, Conversational AI is more than just a tool—it’s a game-changer. Whether it’s optimizing internal operations or achieving business objectives, Conversational AI plays an important role in efficiency and effective communication.
If you want to experience the revolutionary impacts of conversational AI in your organization, reach out BITLogix. We will help you craft tailored Conversational AI solutions that make your organization stand out and thrive. Get in touch today for a future of smarter, more engaging interactions. Your success is just a conversation away.