Conversational AI: What It Is and How To Use It

March 14, 2023 Dharmesh Shah


ChatGPT has skyrocketed in popularity — it grew to 1M users in just five days. ChatGPT is a conversational AI, and its celebrity comes at a time when many businesses are adopting similar time-saving tools into their marketing processes. This post will go over everything you need to know about conversational AI, including: What is conversational AI? Conversational AI vs. Chatbots How does conversational AI work? Examples of Conversational AI Benefits of Conversational AI Challenges of Conversational AI Conversational AI Statistics At its core, it applies artificial intelligence and machine learning. Common examples of conversational AI are virtual assistants and chatbots. Conversational AI vs. Chatbots Conversational AI and chatbots are often discussed together, so knowing how they relate is important. Chatbots are an application of conversational AI, but not all chatbots use conversational AI. Most chatbots are rule-based, where they’re preprogrammed with specific canned responses and scripts and can’t handle more complex conversations. AI chatbots can handle multiple types of conversations and topics and use data to give the most accurate response. How does conversational AI work? Conversational AI exists through machine learning, natural language processing (NLP), and natural language generation (NLG). Machine learning is how a conversational AI tool gets its intelligence. It begins with human input, where someone feeds a machine a unique data set to learn from. It studies the data, understands connections, and eventually becomes ready to have real conversations with real humans. Natural language processing is the machine's ability to recognize words and phrases from conversations with humans because of the original data it learned from. The tool then uses NLG to develop the best possible responses to human queries. Conversational AI only gets better and more accurate over time as it continuously learns from every conversation. The overall process is this: Input is received as text or audio (spoken words or general sounds). The machine analyzes the input with natural language processing to uncover what the input means and what a response could include. Once the input is understood, conversational AI brings a user the best and most accurate information (NLG). Machines use data from every conversation to build knowledge and generate more accurate responses. Exampl

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