Understanding Conversational AI, What It Is and How It Works

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Understanding Conversational AI

Conversational AI is seeing rapid year over year increases in deployment. Many businesses want to deploy a Conversational AI platform, but they do not know where to begin. Understanding how Conversational AI works and how it can be deployed cost effectively is key. In this article we will highlight what is conversational AI, how conversational AI works, conversational ai services, and conversational ai chatbots

What is Conversational AI?

Conversational AI technology is focused on producing a natural and seamless way for humans and machines to communicate. And by machines, we’re typically talking about software applications. Conversational AI is a subset of Artificial Intelligence. AI also includes things like machine learning or ML, generative AI, deep learning, RPA (robotic process automation), Computer Vision, Neural Networks, Natural Language Processing, and more. AI leverages NLP or Natural Language Processing as well as ML or Machine Learning. Conversational AI is able to learn from previous interactions. It will improve its efficiency and accuracy over time. It does this by leveraging machine learning. The main goal of Conversational AI is to create a more natural interface for humans and technology.

Conversational AI differs from traditional AI in that it seeks to provide real time responses at all times. It is also focused on delivering the best possible user experience. Conversational AI learns to adapt to human behavior and language to deliver the best possible experience. Traditional AI often lacks the ability to understand the context of conversations. In contrast, conversational AI uses machine language processing and machine learning algorithms to attempt to grasp the context and provide the right response. Conversational AI also differs from traditional AI in that it is more ready to deal with multi step conversations and interactions. Conversational AI will remember past interactions and use this information in future responses.

How Does Conversational AI work?

Conversational AI uses a variety of tools and mechanisms to deliver an end to end solution. Please find the below list describing the main components of Conversational AI technology.

Natural Language Understanding (NLU): This is the ability of Conversational AI to comprehend and interpret human language inputs. It helps the AI understand the user’s intention, even if the phrases or sentences aren’t explicitly programmed into it.

Natural Language Processing (NLP): NLP is the broader field of enabling machines to understand and interact in human language. It encompasses NLU and NLG and is crucial in breaking down and interpreting human language for the AI.

Natural Language Generation (NLG): This is the process of producing meaningful phrases and sentences in response to the user’s input. It’s how the AI generates a human-like response.

Machine Learning (ML): Machine learning allows the AI to learn from past interactions, improving its responses over time. It’s key to the AI’s ability to improve and adapt to different types of conversations.

Dialogue Management: This component is responsible for managing the flow of the conversation. It keeps track of the context, ensures the AI responds appropriately, and manages the back-and-forth in the conversation.

Speech Recognition: This is the technology that allows the AI to understand spoken language. It’s key to voice-driven conversational AI platforms, like Siri, Alexa, or Google Assistant.

Speech Synthesis: This is the ability of the AI to convert text into spoken language, allowing it to respond to users verbally. It’s used in conjunction with speech recognition in voice-based platforms.

Integration Layer: This allows the AI to interact with other systems and databases, retrieving information or performing actions as needed during the conversation. It’s how the AI can provide information or perform tasks during a conversation.

Conversational AI Chatbots: AI That Talks Back

One of the key advantages of using conversational AI technology is that it can communicate through multiple channels. Conversational AI can be leveraged in an omni channel way. By omnichannel we mean that conversational AI can be used on websites, apps, social media platforms, phone calls, and other areas where you communicate with customers.  Conversational AI offers 24 by 7 availability. Bots can always be on and always working. By always being on, they are always collecting information as well. Leveraging a Conversational AI platform businesses can gain rich insights and improve their business intelligence. Conversational AI bots can provide improved efficiency as well. They can handle repetitive and straightforward tasks on their own. This can free up human agents to work on more complex and high value interactions. They can also go into data collection and call preparation mode and hand over interactions to human agents with a full view of the current situation. Conversational AI chat bots reduce costs overall.  They can be less expensive than human workers and they can make human workers hyper productive.

Understanding Conversational AI Services

Large multinationals and big corporations have been leveraging conversational AI for quite a while. Midsize companies and small businesses have been challenged to leverage this great technology. Enterprise and seat licenses for conversational AI can be expensive. Engaging with a managed service provider to deploy conversational AI as a service can be a way to launch quickly and cost effectively. Managed service providers for conversational AI will provide end to end management of a platform. The service provider will handle everything from deployment and integration to maintaining and updating the AI system. Managed service providers bring expertise and experience with conversational AI to companies that may not have it. Companies leveraging MSP’s gain access to industry experts. Managed service providers can quickly scale up and ramp down as needs are required. With managed service providers there is an onboarding process where customization of a specific platform unique to a company’s needs is developed. Managed service providers can offer continuous optimization of this Conversational AI platform. Managed Service providers will typically provide performance metrics for how a platform is doing and ways to optimize and better leverage it. Valenta is a managed service provider of conversational AI. We also provide other managed AI services like RPA and Intelligent Document Processing. Oftentimes, we provide these services in combination. Combining conversational AI with RPA leads to hyper automation.

Want to Learn More?

Valenta has extensive experience with digital transformation and Conversational AI. Valenta has managing partners located in cities across the world. Our managing partners have experience with digital transformation for mid-size companies. Valenta local managing partners work with other regional partners and consultants who are experts in digital transformation to deliver the best managed services to our clients. Our local team will also work with nearshore and offshore staff to provide cost-effective commercial engagements. To learn more about Conversational AI, please visit this page on our website. To speak to one of our managing partners to determine if a conversational AI platform can transform your business, please contact them here.

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