Why You Need Conversational AI That’s More Than a Chatbot

Why You Need Conversational AI That’s More Than a Chatbot

key differentiator between conversational ai and chatbot

67% of ChatGPT users feel understood by the bot often or always, versus only 25% of retail chatbot users. Consumers are likely to be the driver towards massive adoption of conversational AI in CX. At SoundHound, we have all the tools and expertise needed to create custom voice assistants and a consistent brand voice. Explore SoundHound’s independent voice AI platform at SoundHound.com or speak with an expert or request a demo below.

Is Siri an AI bot?

Siri is Apple's virtual assistant for iOS, macOS, tvOS and watchOS devices that use voice recognition and are powered by artificial intelligence (AI). Such technologies–Siri, Alexa and Google Assistant– that have become an integral part of our families, so to speak–are excellent examples of conversational AI.

The financial sector, in particular, has a clear and present need to revitalize how they interact with their customers. DNB, one of the largest banks in Europe, have several thousand online conversations with their customers every day. Overall, DNB saw 17 percent less customer interactions that required human support. Chatbots are commonly used in customer service, marketing, and other industries to automate interactions with customers. They can provide quick responses to common questions, and are designed to save time and resources for businesses.

Business Intelligence Bots

A chatbot, on the other hand, has a whole world of linguistics to draw from. What if you don’t handle that many incoming requests from prospects and customers? Set up a chatbot that will welcome site visitors and drive attention to your lead magnet, and you’ll generate a lot of inbound opportunities. If your business strategy relies on upselling and retention of existing customers, live chat can be your customer success tool.


You’ve likely used the technology firsthand if you’ve ever used smart speakers like Siri, Google Home, or Alexa. Contextual chatbots, also known as virtual agents, are programmed to understand the intention of users and respond accordingly using machine learning, natural language processing, or a mix of the two. Because they can learn from customer conversations, these bots may gradually improve the quality of their replies.

Importance of Conversational AI in today’s marketplace

By providing a more natural, human-like conversational experience, conversational AI can be used to great effect in a customer service environment. This helps to provide a better customer experience, offering a more fulfilling customer experience. Rule-based chatbots are much simpler to implement than conversational AI. Because they often use a simple query-and-response interface, they can often be installed and customized by a single operator following guided instructions.

key differentiator between conversational ai and chatbot

Do you know that most modern and profit-making businesses today use chatbots or are considering having one? A lot of customers look forward to seeing a chatbot on business websites for quick query resolution. A. Scaling conversational AI systems poses difficulties such as managing high user query volumes, assuring reliable performance, and upholding data security and privacy.

Conversational AI Examples

Its natural flow of language and the articulate responses it gives to prompts have blown everyone away. Sure, sometimes the answers were more verbose than required and other times, very general or even inaccurate. That way, you can leverage your existing data to understand how your customers have asked a specific question in the past, increasing the accuracy of your AI. It might be more accurate to think of conversational artificial intelligence as the brainpower within an application, or in this case, the brainpower within a chatbot. The main difference between Conversational AI and chatbots is that chatbots have much less artificial intelligence compared to Conversational AI.

Do bots count as AI?

What is a chatbot? A chatbot is a computer program that uses artificial intelligence (AI) and natural language processing (NLP) to understand customer questions and automate responses to them, simulating human conversation.

In this article, we will compare “Conversational AI vs Chatbots” technology to help you decide which technology is perfect for your business to enhance internal operations and customer experience. The key differentiation of conversational AI is the implementation of machine learning and making the software works as human as possible. In other words, this branch helps computers to understand human language. Also, NLU makes computers give logical and coherent answers to what you write or say. In the chatbot vs. Conversational AI debate, Conversational AI is almost always the better choice for your company. It takes time to set up and teach the system, but even that’s being reduced by extensions that can handle everyday tasks and queries.

What is a key differentiator of conversational AI?

Artificial intelligence chatbots are chatbots trained to have human-like conversations using a process known as natural language processing (NLP). With NLP, the AI chatbot is able to interpret human language as it is written, which enables them to operate more or less on their own. Level 1 assistants provide some level of convenience, but it puts all of the work onto the end user.

  • 55% of companies without a digital transformation believe that they have less than a year before they start to lose market share.
  • It is a digital assistant that can be used to converse with customers in natural language and reply to their questions or perform some other tasks.
  • Today 3 out of 10 customers prefer messaging over calling to resolve any issues faced during a business deal, and this is a ratio to increase in the upcoming years.
  • It is a software-based agent that helps users in performing daily simple tasks.
  • And 69 percent of customers say they’re willing to interact with a bot on simple issues—a 23 percent increase from the previous year.
  • It takes time to set up and teach the system, but even that’s being reduced by extensions that can handle everyday tasks and queries.

People take for granted that words can have different meanings in different contexts and that the order of words matters. NLU algorithms learn from different sources to develop an understanding of a person’s intent when they ask a question or make a statement. Your customers want answers fast when they reach out to your customer support team. Valuing their time is the most important thing companies can do to provide good customer service — conversational AI can help with that. This software can easily improve your customer service team’s productivity and efficiency. Bard’s main goal is to retrieve information in a simple answer versus a search engine results page, like digital assistants, such as Alexa and Siri, but with links for users to gather more information.


If you’d like to see how it can benefit your business, talk to our team today!. 69% of customers prefer to use the chatbots for the queries and get service assistance, says a Cognizant report. On the other hand, 84% of the consumers accept to use the conversation AI platform at home, 44% while in cars, and 27% at work, reports Hubspot.

  • A. In conversational AI, intent recognition determines the fundamental reason or objective behind user inquiries.
  • If your business needs a more potent tool to facilitate operations and enhance customer communication, a virtual assistant will benefit you the most.
  • The changing consumer preferences and needs are enough to prove that AI technology is here to stay but it doesn’t just end there.
  • Conversational AI ensures that every visitor that lands on your website or any other platform will be addressed with a tailor-made conversation.
  • As opposed to relying on a rigid structure, conversational AI utilizes NLP, machine learning, and contextualization to deliver a more dynamic scalable user experience.
  • But when it comes to conversational AI vs. chatbots, which is best for your company?

Chatbots are largely company-based solutions, as they assist businesses to provide better experience and engagement to the customers. Over the last year, there have been several examples of businesses transitioning from their existing, ineffective metadialog.com chatbot solution to a new vendor offering true conversational AI. Being able to handle 80% of incoming inquiries, as opposed to 40%, brings huge benefits, not only in terms of user experience, but potential savings and future revenue.

Conversational AI and its unique features

Tools and services must be accessible to all employees and in sync with current market needs. To do this, CIOs must possess communication skills and the ability to manage human resources to spread digital culture within the company and build consensus towards digital transformation. CIOs are often seen as the more traditional executive who looks after the IT systems and BI initiatives within an enterprise, delivering the data and information that a business really needs.

key differentiator between conversational ai and chatbot

But the key differentiator between conversational AI from traditional chatbots is that they use NLP and ML to understand the intent and respond to users. They are powered with artificial intelligence and can simulate human-like conversations to provide the most relevant answers. Unlike traditional chatbots, which operate on a pre-defined workflow, conversational AI chatbots can transfer the chat to the right agent without letting the customers get stuck in a chatbot loop. These chatbots steer clear of robotic scripts and engage in small talk with customers.

What is your key differentiator?

Key Differentiator Definition. To put it as succinctly as possible, a key differentiator is a brand's distinct and unique value that sets itself apart from its competitors within the market. This differentiator and unique value answers the question: Why would I choose this brand over one of its competitors?

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