Chatbot vs Conversational AI Explained

Understanding their capabilities empowers organizations to explore impactful applications of these technologies. Customers reach out to different support channels with a specific inquiry but express it using different words or phrases. Conversational AI systems are equipped with natural language understanding capabilities, enabling them to comprehend the context, nuances, and variations in your queries. They respond with accuracy as if they truly understand the meaning behind your customers’ words. By integrating language processing capabilities, chatbots can understand and respond to queries in different languages, enabling businesses to engage with a diverse customer base.

We are preferred partners for many leading Conversational AI and RPA platform providers delivering stunning Conversational Automation experiences to the Enterprises. Generative AI allows modern chatbots to converse about a range of different topics, without any guidance or programming beforehand. And in many cases, they can understand and generate natural language as well as a human. Everyone from banking institutions to telecommunications has contact points with their customers. Conversational AI allows for reduced human interactions while streamlining inquiries through instantaneous responses based entirely on the actual question presented.

Which is better for your company?

Luxury Escapes, a leader in providing top-notch travel deals, partnered with Master of Code Global to create this travel chatbot, offering personalized and engaging experiences to travelers. Launched in February 2019, the Chatbot revolutionized how users search and book luxurious trips, leading to an astonishing 3x higher conversion rate than their website. Users engaged enthusiastically, with over 7400 retargeting interactions and more than 16,800 plays of the fun ‘Roll the Dice’ vacation selector game. The Chatbot’s success story includes generating over $300,000 in sales revenue within just 3 months of its launch.

In addition, on the platform, you also have access to numerous metrics that you can analyze to improve chat interactions and the Live Chat service. Cody, just like ChatGPT, is a brilliant AI assistant to train businesses teams through your knowledge base. With Cody’s abilities, you can support your teams, respond to inquiries, and help with innovative projects to increase the effectiveness of your team. Crucially, these bots depend on a team of engineers to build every single flow, and if a user deviates from the pre-built script, the bot will not be able to keep up. In today’s age of data sensitivity and privacy, customers and enterprise security officers must trust the bots containing private data to comply with laws and mandates.

Chatbots vs conversational AI: 3 main differences

That also means chatbots and conversational AI are going to be more sophisticated with time. Users will get better-personalized solutions, including tailored recommendations, targeted messaging, responses, etc. Chatbot is a rule-based technology that is designed for handling a very limited number of tasks. That means the chatbot won’t be able to resolve queries that have not been previously defined. Enterprises can greatly benefit from conversational AI since many have thousands of business processes spanning hundreds of applications.

Also, it supports many communication channels (including voice, text, and video) and is context-aware—allowing it to understand complex requests involving multiple inputs/outputs. The most common type of chatbot is one that answers questions and performs simple tasks by understanding the conversation’s conversational ai vs chatbot words, phrases, and context. These basic chatbots are often limited to specific tasks such as booking flights, ordering food, or shopping online. They’re popular due to their ability to provide 24×7 customer service and ensure that customers can access support whenever they need it.

Benefits of implementing a conversational AI

Long wait times quickly damage your brand reputation, but adding new agents takes time and drives up costs. AirAsia added conversational AI to their website and reduced customer service wait times by 98% in just four weeks — from almost an hour to less than a minute. In addition to offering support in 11 languages, the leading airline is now able to resolve 75% of interactions using conversational AI-powered chatbots. Customer satisfaction jumped 30 points, from 60% to 90%, and they saw an 8x increase in ancillary product up-sell/cross-sells. A branded chatbot plus personalization will enhance trust and loyalty while reducing cost per conversation and agent burnout.