Conversational AI

Conversational AI leverages Natural Language Processing (NLP) and Machine Learning (ML) to power human-like text and voice interactions, automating 70-80% of routine customer queries.

Conversational AI is the technology stack (NLP, ML, and advanced dialog management) enabling computers to understand, process, and generate natural human language. It moves beyond basic, rule-based chatbots by using deep learning to continuously improve, handling complex, multi-turn conversations. Key applications include virtual assistants (Amazon Alexa, Apple Siri) and enterprise customer service, where it provides 24/7 support. This capability delivers measurable business impact: companies report an average 30% reduction in customer service costs, driving the market toward a projected 21.9% Compound Annual Growth Rate (CAGR) through 2028.

https://www.ibm.com/topics/conversational-ai