{"id":27718,"date":"2022-11-08T09:26:10","date_gmt":"2022-11-08T17:26:10","guid":{"rendered":"https:\/\/www.helpshift.com\/?post_type=glossary&#038;p=27718"},"modified":"2023-11-02T12:27:04","modified_gmt":"2023-11-02T19:27:04","slug":"what-is-conversational-ai","status":"publish","type":"glossary","link":"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/","title":{"rendered":"What is Conversational AI?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#How_Does_Conversational_AI_Work\" title=\"How Does Conversational AI Work?\">How Does Conversational AI Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Conversational_AI_and_Humans_Working_Together\" title=\"Conversational AI and Humans Working Together\">Conversational AI and Humans Working Together<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Benefits_of_Conversational_AI\" title=\"Benefits of Conversational AI\">Benefits of Conversational AI<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Save_Time\" title=\"Save Time&nbsp;\">Save Time&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#More_Availability\" title=\"More Availability&nbsp;\">More Availability&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Add_a_Personalized_Experience\" title=\"Add a Personalized Experience\">Add a Personalized Experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Work_Out_of_Hours\" title=\"Work Out of Hours&nbsp;\">Work Out of Hours&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#What_Industries_Use_Conversational_AI\" title=\"What Industries Use Conversational AI?\">What Industries Use Conversational AI?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Ecommerce\" title=\"Ecommerce\">Ecommerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Financial_Services\" title=\"Financial Services\">Financial Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Telecommunications\" title=\"Telecommunications&nbsp;\">Telecommunications&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.helpshift.com\/glossary\/what-is-conversational-ai\/#Talk_to_the_Conversational_AI_experts\" title=\"Talk to the Conversational AI experts\">Talk to the Conversational AI experts<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Conversational AI is a type of artificial intelligence that allows customers to converse and interact with computer applications.&nbsp;<\/p>\n\n\n\n<p>The main goal is that the consumer\u2019s linguistic dialogue is understood, even through different expressions, so that a task can be performed.&nbsp;<\/p>\n\n\n\n<p>Conversational AI technology ranges from fairly simple language to more sophisticated machine learning.&nbsp;<\/p>\n\n\n\n<p>Conversational AI platforms most commonly feature chatbots and\/or voice assistants that leverage natural language processing (NLP) and\/or natural language understanding (NLU) to interpret user inputs in order to carry out a conversation-like interaction.&nbsp;<\/p>\n\n\n\n<p>A Conversational AI chatbot can answer common user questions and even predict and classify the intent of consumer issues, enabling faster and more effective issue resolution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Conversational_AI_Work\"><\/span>How Does Conversational AI Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Conversational AI works with two functions:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Natural language processing: <\/strong>This function is how artificial intelligence breaks down the input to understand the different pieces of what is being said. Find out more about <a href=\"https:\/\/www.helpshift.com\/glossary\/natural-language-processing\/\">natural language processing<br><\/a><\/li>\n\n\n\n<li><strong>Intent detection<\/strong>: Using machine learning from previous conversations, artificial intelligence matches the details from the language processing to detect a primary intent of what was being said.<br><\/li>\n\n\n\n<li>Entity extraction: Similar to intent detection, the artification intelligence also uses learnings to extract any specific objects\/items that are being talked about.<\/li>\n<\/ul>\n\n\n\n<p>For example, if a consumer messages customer service about the tracking information of their order, the chatbot will be able to (1) parse the message, (2) identify that the consumer is interested in \u2018tracking a package\u2019 and (3) identify the package to be tracked.&nbsp; With this information the chatbot can respond by lead the user onto an effective resolution pathway based on how the AI has been trained.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.helpshift.com\/wp-content\/uploads\/2022\/11\/img_636a916707ddf.png\" alt=\"\"\/><\/figure>\n\n\n\n<p>Helpshift\u2019s artificial intelligence platform provides an out-of-the box conversational solution that will leverage the previous customer queries to train and build a structured intent tree based upon the most frequent customer problem types.&nbsp; This intent tree then becomes the backbone of the conversational AI experience.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conversational_AI_and_Humans_Working_Together\"><\/span>Conversational AI and Humans Working Together<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Most successful implementations of a conversation AI take a mixed approach where the Conversational AI works alongside Human agents.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Instead of consumers feeling that they are stuck with an unfeeling robot, consumers can get the benefits of an automated experience knowing that if needed they can have the ability to engage with a human being.&nbsp; The best of both worlds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Conversational_AI\"><\/span>Benefits of Conversational AI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many benefits of conversational AI for both the consumer and large organizations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Save_Time\"><\/span>Save Time&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>AI chatbots or virtual assistants can save time by taking care of simple customer service issues.&nbsp;<\/p>\n\n\n\n<p>Allowing a team to deal with complex questions, and making sure customer wait time is minimalized.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"More_Availability\"><\/span>More Availability&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unless staff plan on working 24 hours a day, seven days a week, social media can solve this problem. Conversational AI can help customers outside of work hours.&nbsp;<\/p>\n\n\n\n<p>It can also answer questions and make customers feel cared for 24 hours a day. A customer may have a question about shipping around midnight, which a chatbot can answer with ease.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Add_a_Personalized_Experience\"><\/span>Add a Personalized Experience<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A benefit of conversational AI machine learning is that it can create a personalized experience for customers.&nbsp;<\/p>\n\n\n\n<p>It can make recommendations based on what\u2019s already in a customer&#8217;s basket or what they\u2019ve asked the chatbot about.&nbsp;<\/p>\n\n\n\n<p>Additionally, agents do not have to be involved.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Work_Out_of_Hours\"><\/span>Work Out of Hours&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With conversational AI, staff don\u2019t need to carry on working out of hours to support customers.&nbsp;<\/p>\n\n\n\n<p>Conversational AI-powered chatbots paired with the power of automation are available to immediately respond to support inquiries when employees aren\u2019t available. When configured well, they can provide customers with the ability to self-serve their own problems or guide them through automated workflows that reach a resolution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Industries_Use_Conversational_AI\"><\/span>What Industries Use Conversational AI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The use of conversational AI is progressing rapidly and it will continue to grow to <a href=\"https:\/\/www.juniperresearch.com\/researchstore\/fintech-payments\/insurtech-research-report?utm_campaign=pr1_insurtech_financial_fintech_feb21&amp;utm_source=businesswire&amp;utm_medium=pr\" target=\"_blank\" rel=\"noopener\">$556b by 2025, a 125% YoY growth<\/a>.&nbsp;<\/p>\n\n\n\n<p>Here are some industries in which conversational AI is rapidly growing:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ecommerce\"><\/span>Ecommerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By 2023, <a href=\"https:\/\/www.juniperresearch.com\/researchstore\/fintech-payments\/retail-technology-trends-research?ch=ecommerce%20ai\" target=\"_blank\" rel=\"noopener\">70% of chatbots will be for retail<\/a>. This is because a large number of retailers are starting to see the success of conversational AI.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Retailers are now looking to:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Improve their landing page conversion rate by reducing the cost of investment.<\/li>\n\n\n\n<li>Improve the customer\u2019s order size with enhanced product suggestions.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Both of these points can improve the likelihood of repeat purchases.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_Services\"><\/span>Financial Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the financial services industry, businesses are looking to engage more customers with a more personalized experience such as conversational AI.&nbsp;<\/p>\n\n\n\n<p>Clients in this industry are increasingly interested in receiving:&nbsp;<\/p>\n\n\n\n<ul>\n<li>A personalized banking experience.&nbsp;<\/li>\n\n\n\n<li>A faster omnichannel experience across SMS and online.&nbsp;<\/li>\n\n\n\n<li>More options from chatbots about their products.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Telecommunications\"><\/span>Telecommunications&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the telecommunications industry, conversational AI is helping to not only personalize a customer&#8217;s interaction but to solve a problem quickly.&nbsp;<\/p>\n\n\n\n<p>There are many benefits to conversational AI, such as:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Increased productivity across omnichannel support functions.&nbsp;<\/li>\n\n\n\n<li>Increased data collection for their customer experience insights.<\/li>\n\n\n\n<li>Enhancing workflows and streamlining their processes.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Conversational AI has improved the telecommunications industry by removing repetitive tasks.&nbsp;<\/p>\n\n\n\n<p>Chatbots also provide the function for feedback after any chat, understanding how interactions impact customer retention.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Talk_to_the_Conversational_AI_experts\"><\/span>Talk to the Conversational AI experts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Conversational AI is progressing in numerous ways, and in a number of industries.&nbsp;<\/p>\n\n\n\n<p>It has a range of benefits to help customer service staff save time and deal with the more complex questions a business is faced with on a daily basis.&nbsp;<\/p>\n\n\n\n<p>Helpshift understands the importance of conversational AI, as our customer service platforms are bots and automated workflows.&nbsp;<\/p>\n\n\n\n<p>Look at the following resources to learn more about chatbots and conversational UI.&nbsp;<\/p>\n\n\n\n<ul>\n<li>Downloadable guide: <a href=\"https:\/\/www.helpshift.com\/blog\/the-beginners-guide-to-customer-service-chatbots-and-ai\/\">The Beginner\u2019s Guide to Customer Service Chatbots and AI<\/a><\/li>\n\n\n\n<li>Product page: <a href=\"https:\/\/www.helpshift.com\/products\/customer-service-chatbot\/\">Customer Service Bots Made Easy<\/a><\/li>\n<\/ul>\n\n\n\n<p>Blog post: <a href=\"https:\/\/www.helpshift.com\/glossary\/conversational-ui\/\">What is Conversational UI?<\/a><\/p>\n","protected":false},"author":8,"featured_media":0,"template":"","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"Uncategorized"}]},"featured_image_src_large":false,"author_info":{"display_name":"Erik Ashby","author_link":"https:\/\/www.helpshift.com\/author\/erikhelpshift-com\/"},"comment_info":"","_links":{"self":[{"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/glossary\/27718"}],"collection":[{"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/users\/8"}],"version-history":[{"count":2,"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/glossary\/27718\/revisions"}],"predecessor-version":[{"id":27722,"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/glossary\/27718\/revisions\/27722"}],"wp:attachment":[{"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/media?parent=27718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.helpshift.com\/wp-json\/wp\/v2\/categories?post=27718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}