Here’s Everything You Need To Know About Conversational AI

Here’s Everything You Need To Know About Conversational AI

Conversational AI

Conversational AI is a branch of AI that allows machines to simulate conversation with humans.

What Is Conversational AI?

Conversational AI, also known as conversational artificial intelligence, is a branch of AI that allows machines to simulate conversation with humans. It utilises technologies like natural language processing (NLP) and machine learning to understand and respond to human language in a way that mimics natural interaction.

What Is The Difference Between Conversational AI & Chatbots?

While the terms conversational AI and chatbots are often used interchangeably, there is a subtle difference between them:

Conversational AI:

  • Broader Term: Includes the technology that allows machines to have humanlike conversations.
  • Focusses On: Simulating natural conversation through understanding and responding to human language.
  • Includes: Chatbots, virtual assistants and other AI systems designed for conversation.


    • A virtual assistant that answers your questions about the weather.
    • A customer service chatbot that helps you troubleshoot an issue with your internet connection.


  • Specific Application: A software program that uses conversational AI to simulate conversation with users.
  • Focuses On: Automating specific tasks and functionalities within a conversation.
  • Can Be Powered By: Conversational AI but can also operate using rule-based systems.


    • A chatbot on a bank’s website that answers questions about account balances.
    • A chatbot on a restaurant’s website that allows you to make a reservation.

Think of conversational AI as the engine that powers a car, while a chatbot is the car itself. The engine (conversational AI) enables the car (chatbot) to function and move, but the car itself has a specific purpose and design.

What Are Some Examples Of Conversational AI?

Conversational AI is becoming increasingly prevalent in our daily lives. Here are some prominent examples:

  • Virtual Assistants:
    • Smart Speakers: Devices like Amazon Echo with Alexa, Google Home with Assistant, and Apple HomePod with Siri allow voice-based interaction for various tasks like setting alarms, playing music, controlling smart home devices and answering questions.
    • Smartphone Assistants: Siri on iPhones, Google Assistant on Android phones, and Bixby on Samsung phones offer similar functionalities through voice or text commands on smartphones.
  • Chatbots:
    • Customer Service: Many companies use chatbots on their websites or apps to answer frequently asked questions, troubleshoot basic issues, and even direct users to the appropriate resources.
    • Ecommerce: Chatbots can assist with product recommendations, order tracking, and managing returns, enhancing the online shopping experience.
    • Language Learning Tools: Interactive language learning platforms often incorporate conversational AI to simulate real-world conversations and provide feedback on pronunciation and grammar.
    • Content Creation: Conversational AI can be used to generate different creative text formats like poems, code, scripts, musical pieces, and even email drafts, based on user prompts and preferences.

What Are The Advantages & Disadvantages Of Conversational AI?

Advantages Of Conversational AI

  • Improved Accessibility: Conversational AI can provide 24/7 customer service, answer questions, and complete tasks regardless of location or time.
  • Enhanced User Experience: AI can personalise interactions based on user preferences and data, making the experience more engaging and efficient.
  • Increased Efficiency: Conversational AI can automate repetitive tasks, freeing up human agents to focus on complex issues and providing cost savings for businesses.
  • Data-Driven Insights: By analysing user interactions, it can provide insights into customer behaviour and preferences, helping companies make informed decisions.
  • Language Barrier Removal: This AI technique can translate languages in real-time, enabling communication and information access across cultures and languages.

Disadvantages Of Conversational AI

  • Limited Understanding: Current AI technology can struggle with complex questions, sarcasm, and nuanced language, leading to misunderstandings and frustration for users.
  • Job Displacement: As AI automates tasks, there is a potential for job displacement in certain sectors, requiring workforce retraining and adaptation.
  • Bias & Discrimination: AI systems trained on biased data can perpetuate discriminatory practices, requiring careful development and monitoring to mitigate bias.
  • Lack Of Empathy: While AI can simulate human conversation, it cannot understand and respond to human emotions and empathy.