Up until two years ago, chatbots were hailed as the next big trend. Thousands of chatbots flocked the market as they are relatively easy to build and could be controlled by a predefined flow. However, this trend began to wane when simple chatbots could not meet complex customer demands. It could only work for completing simpler commands like ordering or booking something. Thus, a need for complex chatbots and conversational AI emerged.

Conversational AI was sought out in order to deal with conversations that require a level of comprehension and cognition that goes far beyond the predefined flow of today’s chatbots. Conversational AI is a form of Artificial Intelligence that allows people to communicate with applications, websites, and devices in every day, humanlike natural language via voice, text, touch, or gesture input. Ram Menon, CEO of Awaamo, writes that “these platforms offer more than a natural language interface (NLI): they demonstrate true advancements in combining a variety of emerging technologies — everything from speech synthesis to natural language understanding (NLU) to cognitive and machine learning technologies — and are capable of replacing humans in a variety of tasks.”

Understanding the customer is the key. Using advanced Conversational AI platforms such as Teneo can result not only in an increase in customer satisfaction but in the actionable data that conversational interfaces generate. Such conversational AI-driven chatbots can understand the context and the sentiment behind the conversation. When conversational AI solutions integrate with back-end data and third-party databases, a deeper personalization can take place. It also needs to be capable of creating a detailed analysis of the chat logs in real-time to feedback into the conversation, improve and maintain the system, and deliver actionable insights to the business.

The benefits of using Intelligent Conversational Interface

Intelligent conversational interfaces are the simplest way for businesses to interact with devices, services, customers, suppliers, and employees everywhere. There are lots of companies that provide AI-driven conversational platforms specifically focused on high impact use cases, including IBM’s Watson and KAI.

Analysts predict the rapid and sustained growth of Virtual Digital Assistants in the coming years. This growth underlines the strongly defined benefits that both consumers and enterprises see in conversational AI. The future of chatbots will be dominated by AI-driven conversational tools.

Giving the customers the best experience and analyzing the data garnered can increase the profits of the company.  Businesses can also cut down on costs by using AI-driven chatbots for automating many tasks such as customer service. As cost benefits continue to pile up, the trend will accelerate in 2018.