Conversational AI: What It Is and Why You Should Invest

Posted by Dan Ehlers, Cloud Data Engineer

Dec 02, 2022

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The demand for a seamless self-service experience has become a common trend over recent years. Companies are seeking scalable solutions that provide rich customer service engagements and deliver fast automation for repetitive tasks. 

Conversational artificial intelligence via chatbots has proven to be a powerful and popular tool for this. From 2021 to 2030, the global market size for this AI platform projects to meet $32.62 billion, which is a compound annual growth rate (CAGR) of twenty percent.

So, what is conversational AI and why should your business invest in it sooner rather than later?

 

Chatbots vs. Conversational AI

What Is Conversational AI?

Conversational AI is a technology that uses voice and text channels to communicate effectively with humans. It’s designed to understand complex conversations and provide the best solution available for the customer.

ChatOps — or chat-based operations — is a form of conversational AI that helps developers write code while maintaining the best practices within communication-hubs. ChatOps can:

  • Help your team collaborate and work together efficiently.
  • Improve visibility by pulling decisions and data into one location, rather than switching between browsers or apps.
  • Create and adjust key commands and codes to help incident response teams.

ChatOps are revolutionizing communication-hubs and collaboration for teams across various industries and they’ll continue to be a form of conversational AI that you’ll see become more prevalent. 

GitHub, for example, uses ChatOps to enable real-time collaboration across their team to ensure a smooth user experience. It helps with queries, complex analyses and reports to update and manage their responses to customers.

What Is a Chatbot?

Chatbots are a common conversational artificial intelligence tool used by many companies to communicate and connect with customers with precision and efficiency.

You can deploy chatbots within every social media platform, website and app your organization uses. This can help your marketing team shift their efforts and leave the repetitive tasks on these channels to chatbots.

 

How Does Conversational AI Work?

AI in a conversational platform can process and analyze large amounts of data and respond to customer queries without human intervention. With automation, conversational AI works with your technology to:

Furthermore, a conversational artificial intelligence platform offers benefits that boost efficiency, revenue, cost savings and more.

 

What Benefits Will Your Business Have With Conversational AI?

Improved Customer Experience

Conversational platforms with AI can improve customer experience in many ways:

  • They manage and respond to complaints with the best solution available.
  • Machine learning (ML) bots remember customer buyer journeys to create a seamless experience for future conversations.
  • AI chatbots can provide a personalized experience for customers to help in decision-making.

Even for new customers, bots can adapt to their needs, similar to how a human employee could. More than 50% of employees have trouble finding the information they need to help customers, but with an AI chatbot, customers can receive accurate information instantly, enhancing their overall experience.

Boosted Customer Service Efficiency

With AI chatbots, you can boost your customer service with 24/7/365 support. Often, organizations can’t afford to spend on the number of resources and staff necessary to provide this support. An example of this is Google Cloud Platform (GCP) and their Contact Center AI (CCAI). With GCP’s CCAI, you can create realistic agents to provide rich and helpful information for customers. You can then create reports and analyze those conversations to evolve your CCAI chatbots.

Agent Assist is a feature of GCP’s CCAI that provides quick suggested responses that are influenced by a comprehensive knowledge base. It can transcribe live customer calls and give your team a 28% increased ability to handle conversations.

GCP’s Dialogflow is another feature that’s simplifying customer-to-business conversations and support needs. Dialogflow uses virtual agents and deep learning capabilities to ask rich and supplemental questions for customers who have inquiries. Dialogflow is currently helping over 1.5 million developers to optimize their support systems. DPD UK, a prominent parcel carrier, has built a detailed and realistic conversation system using Dialogflow to solve over 32% of queries from 3 million customers using their parcel tracking app.

Cost Efficiency

As mentioned, the cost of using a round-the-clock customer support team is expensive. Artificial intelligence in a conversational platform only requires a small support team to help monitor and respond to sophisticated problems. This frees up much of your staff and saves costs that would otherwise be spent responding to every customer query.

Furthermore, AI is anticipated by 74% of executives to optimize operations while approximately 55% believe it will help create business models and new products/services to help companies save resources that would otherwise be spent toward research and development.

Scalable Technology

Conversational platforms with AI can also help your support team by managing the flow of customer tickets. Although conversational artificial intelligence can take on a lot of tickets, it can also deflect tickets for stability and prevent ticket overload.

Improved Sales

Conversational artificial intelligence utilizes analytics to help you monitor revenue, buyer journeys and the rate of returning customers. This helps sales teams by consolidating and reporting the data they need to do their jobs with more efficiency.

Additionally, AI can streamline and accelerate intercommunication across your team with AI cloud services. This is highly important, as 16% of employee time is spent on internal communication and over 19% use that time on research and development.

 

Onix Can Help Transform Your Company With Conversational AI

Undertaking a digital transformation is a huge step for any organization. Implementing a conversational artificial intelligence platform can be another complex hurdle without the right team of experts.

Our cloud and AI specialists can work with you to find the right conversational AI platform and give you the best practices for implementing it into your company.

To learn more about how you can modernize and evolve your enterprise with our Onix Analytics Modernization (OAM) workshop, contact us today.

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Dan Ehlers, Cloud Data Engineer

Dan is a Cloud Data Engineer at Onix. Applying machine learning to even the most precarious of problems is Dan's passion. His favorite ML framework is JAX, his go to large language model is GPT-3.

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