How Conversational AI Outperforms Chatbots – A Brief Overview

Mathijs van der Kooi
Last updated: 22 Sep 2021

How Conversational AI Outperforms Chatbots – A Brief Overview

Mathijs van der Kooi
Last updated: 22 Sep 2021

More and more companies are integrating chat bots into their customer support services. However, some companies’ chatbots are basic at best, while others would be easily mistaken for human operators. The former are plain chatbots, while the latter are AI-powered chatbots. Indeed, conversational AI outperforms chatbots in every way. 

The Difference between Conversational AI & Chatbots

Chatbots and conversational AI are becoming increasingly integrated to the point where most businesses cannot tell the difference between the two. However, chatbots and conversational AI are different, and businesses should know this to leverage the best of virtual assistant technology.

Chatbots are scripted programs that operate within a set of rules and parameters. They have access to a database from where they get information to facilitate conversations with users. Their conversational capabilities are limited to the pre-set parameters and the content of their database.

Conversational automation is like an extensively advanced version of a chatbot. It relies on a range of AI conversational tools, including:

  • Natural Language Processing (NLP)
  • Automatic Speech Recognition (ASR)
  • Machine Learning (ML)
  • Advanced Dialogue Management

Conversational AI combines these technologies to carry on conversations as a real person would. Additionally, it uses vast databases for information, while chatbots operate within narrow and limited parameters. More importantly, conversational AI algorithms use deep learning technology to study the art of conversational and improve and expand their conversational capabilities.

To this end, a chatbot cannot respond to queries that go outside the set parameters. However, conversational automation can easily switch conversations between vastly different topics. Consequently, more than 40% of large companies are considering investing more in their chatbots.

Why & How is Conversational AI Better than Chatbots?

Conversational AI is better than chatbots in several ways and for several reasons. Some of the most notable ones include:

  • Efficiency

Chatbots are best suited for responding to common queries and frequently asked questions. Their usefulness is limited if you have a complex issue.

However, conversational AI taps into a vast database, giving it access to as much information as necessary to answer users’ queries. To this end, AI-powered algorithms can respond to complex, multi-faceted queries just like a human operator. More notably, it can compile complex and comprehensive answers in a fraction of a second.

To this end, conversational automation is more efficient than chatbots (and human operators in certain aspects). Consequently, 70% of users of AI-powered chatbots report a positive customer experience.

  • Omnichannel Capability

Customers often use multiple channels to interact with a brand, including the brand’s website and social media pages. They need quick and direct access to your customer support desk through their channel of choice, or else they will go looking elsewhere.

Unfortunately, chatbots are limited to one platform, such as a website or social media page – a conversation via a new platform is new and different. However, conversational AI operates across multiple platforms and seamlessly integrates past and present conversations, giving users a singular experience.

  • Hyper-Personalization

Conversational AI algorithms have access to vast databases and utilize deep learning technology to learn and improve over time, as mentioned. This means that the algorithm can access every user’s data to offer the most personalized answer to their queries. Additionally, it can learn about every user’s changing preferences over time, ensuring hyper-personalization.

Customers want to feel personally appreciated and valued. Consequently, hyper-personalization improves the users’ experience, creating closer relationships than most human operators can.

Final Thoughts

Conversational automation is better than chatbots in virtually every aspect. However, they are highly effective when combined, and more and more companies are upgrading their chatbots to accommodate Artificial Intelligence. Get in touch to learn all about conversational AI and how it can help your business.

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